Stanbic Bank (U) Limited v Rebecca Kaduru (Civil Suit No. 113 of 2023) [2025] UGCommC 196 (24 June 2025)

# 5 THE REPUBLIC OF UGANDA IN THE HIGH COURT OF UGANDA AT KAMPALA (COMMERCIAL DIVISION) CIVIL SUIT NO. 0113 OF 2023

10 STANBIC BANK (U) LIMITED………………………….…….. PLAINTIFF

# VERSUS

# REBECCA KADURU……………………..…………........ DEFENDANT

# BEFORE: HON. LADY JUSTICE SUSAN ODONGO

#### JUDGMENT

- 20 The Plaintiff filed this suit for the following orders: - a) Payment of Ugx 124,486,940/- (Uganda Shillings One hundred Twenty Four million, Four Hundred Eighty Six Thousand, Nine hundred Forty only) being outstanding principal loan and interest; - b) Interest on a) above at a rate of 18% per annum from the date of breach 25 until payment in full; - c) Costs of the suit.

The facts of the case are that on 27th March 2014, the plaintiff provided credit facilities to the defendant by a loan of Ugx 90,000,000 at interest rate of 18% per annum and payment of the principal was by monthly instalments of Ugx


5 2,339,692/-. The defendant irregularly serviced her loan and subsequently defaulted on her payment obligations. Despite several reminders the defendant failed to make good her obligations. Hence the debt of Ugx 124,486,940/-.

When this matter came up for hearing, the plaintiff was represented by Counsel Paul Winyi Kasami who contended that summons to file a defense were issued

- by the Registrar on 13th 10 February 2025 for service upon the defendant. The defendant did not respond. The plaintiff served the defendant by substituted service in the Monitor Newspaper at page 32 on 12 th May 2025 (an affidavit of service deponed by Hyuha Philip Hiisa). The defendant has not filed a defense. - The plaintiff then prayed for default judgement to be entered against the 15 defendants pursuant to the provisions of Order 9 rule 6 of the Civil Procedure Rules S. I. 17-1.

## Determination by Court

The singular question for determination by this Honourable court is *whether* 20 *default judgement should be entered against the defendant.*

It suffices to state that the timely resolution of disputes cannot be overstated, as the credibility and effectiveness of the judicial system are highly dependent on it. In addition, public policy demands that the business of the courts should be conducted expeditiously. One way to support this, is through the diligent

25 participation of the parties to the suit by, inter alia, filing of necessary pleadings in accordance with the directions of the court to enable the progress of the case.


5 Where defendant fails to file a defense within the time prescribed in the summons, the law under Order 9 rule 5 and rule 6 of the Civil Procedure Rules, provides guidance on how to proceed.

The provisions state;

#### *Order 9*

### 10 *5. Affidavit of service upon failure to file defence*

*Where any defendant fails to file a defence on or before the day fixed in the summons and the plaintiff is desirous of proceeding upon default of filing the defence under any of the rules of this Order, he or she shall cause an affidavit of service of the summons and failure of the defendant to file a defence within the prescribed time to* 15 *be filed upon the record.*

#### *6. Judgment upon a liquidated demand*

*Where the plaint is drawn claiming a liquidated demand and the defendant fails to file a defence, the court may, subject to rule 5 of this Order, pass judgment for any sum not exceeding the sum claimed in the plaint together with interest at the* 20 *rate specified, if any, or if no rate is specified, at the rate of 8 percent per year to the date of judgment and costs.*

I am satisfied that service of summons on the defendant was effective, an affidavit of service is on the record.

Consequently, I enter default judgement against the Defendant as follows:

25 a) Payment to the plaintiff of Ugx 124,486,940/- (Uganda Shillings One hundred Twenty Four million, Four Hundred Eighty Six Thousand, Nine hundred Forty only) being outstanding principal loan and interest;


- 5 b) Interest on a) above at a rate of 18% per annum from the date of default until payment in full; - c) Costs of the suit are awarded to the plaintiff.

I so order.

Dated, signed and delivered in court this 24 th 10 day of June, 2025.

> S. Odongo JUDGE

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