The Court of Appeal in Kampala has ordered businessman, Haruna Sentongo to pay shs10.3 billion with interest after losing an appeal he had filed against I&M Bank .
Ssentongo had in 2019 run to the High Court seeking repayment of Shs 10.4 billion, accrued interest, general damages, and costs of the suit after accusing the bank of breaching the terms of the contract after taking a loan from them.
However, in December, 2022 he lost the case and was ordered by the Commercial Division of the High Court to pay shs10.4 billion indebted by Orient Bank which changed name to I&M Bank .
Dissatisfied with the decision of the lower court, Ssentongo ran to the Court of Appeal.
In the latest decision by a panel of three justices including Cheborion Barishaki, Christopher Gashirabake and Monica Mugenyi ruled that the lower court made no fault in its decision since it awarded a reasonable rate of interest.
“It is my considered view that, in determining a just and reasonable rate of interest, courts should take into account the ever-rising inflation and drastic depreciation of the currency. A claimant should be entitled to such rate of interest that takes into account the prevailing economic value of money, but at the same time one which would insulate him or her against any further economic vagaries and the inflation and depreciation of the currency in the event that the money awarded is not promptly paid when it falls due,” Justice Barishaki said in his lead judgment.
“Based on the aforementioned principles, it is my finding that the learned trial judge cannot be faulted for awarding interest on the outstanding sum of sum shs10.4 billion. The award was in exercise of his discretion under Section 26 of the Civil Procedure Act.”
The appellant court said having found no merit in the businessman’s suit the lower court was inclined to award costs to the bank and therefore, there no error in law.
“I have carefully reviewed the evidence on record and I am unable to fault the learned Judge on the order awarding costs in the consolidated suits to the respondent(bank). The learned Judge found that the Appellant(Ssentongo) had not proved his claims against the respondent and therefore dismissed it.”
In light of the above, the Court of Appeal ruled that businessman Haruna Ssentongo’s appeal fails and ordered him to pay shs10.4 billion to I&M Bank that he is owed.
“The appellant, Mr. Haruna Sentongo, is indebted to the respondent, Orient Bank Limited now I&M Bank (Uganda) Limited in the sum of shs10,384,396,959,” the court ruled.
The Court of Appeal also ordered the businessman to pay a rate of 12.5% per annum on the shs10.4 billion since January, 22, 2019, the date of filing of the suit until payment in full.
The bank was also awarded shs150million in general damages and a 6% per annum interest on this amount from the date of judgement until full payment.
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