Citi Bank (U) Ltd v Collin Semakula (HCT-00-CC-CS 676 of 2005) [2007] UGCommC 42 (27 April 2007)

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REPUBLIC OF UGANDA \par IN THE HIGH COURT OF UGANDA AT KAMPALA \par (COMMERCIAL COURT DIVISION) \par HCT \endash 00 \endash CC - CS \endash 676 \endash 2005 \par \par }\pard \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2058765 {\b\insrsid7104485\charrsid2058765 CITI BANK UGANDA LIMITED \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85PLAINTIFF \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2058765 {\b\insrsid7104485\charrsid2058765 VERSUS \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2058765 {\b\insrsid7104485\charrsid2058765 COLLIN SEMAKULA \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85..... DEFENDANT \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2058765 {\b\insrsid7104485\charrsid2058765 BEFORE:\~\~\~\~\~ THE HON. JUSTICE LAMECK N. MUKASA}{\b\ul\insrsid7104485\charrsid2058765 \par }{\b\insrsid7104485\charrsid2058765 \par JUDGMENT \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2058765 {\insrsid7104485\charrsid2058765 The plaintiff\rquote s case is briefly that the defendant was an employee of the plaintiff.\~ In the course of the

employment the defendant was granted two staff credit facilities.\~ A car loan of shs 10,000,000/= and a personal loan of shs, 11,055,000/=.\~ The defendant\rquote s employment was terminated when there was an outstanding amount shs, 5,440,133/= on the car loan and before paying up the personal loan.\~ The plaintiff\rquote s claim is for 16,495,134/= due on the two loans and interest at 20%}{ \insrsid13135234\charrsid2058765 per annum from}{\insrsid7104485\charrsid2058765 the day payment was due until full and final payment.\~ The defendant was served by substituted service by advertisement in the }{\insrsid13135234\charrsid2058765 New Vision newspaper }{\insrsid7104485\charrsid2058765 of 5}{\super\insrsid7104485\charrsid2058765 th}{\insrsid7104485\charrsid2058765 December 2005.\~ The defendant did not file a written statement of defence and the suit was set down for formal proof.

\par \par Mr. David Mpanga appeared for the plaintiff and framed the following issues: \par \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid7104485\charrsid2058765 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid2058765 {\insrsid7104485\charrsid2058765 Whether the defendant owes the plaintiff any money. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2058765 {\insrsid7104485\charrsid2058765 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid7104485\charrsid2058765 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid2058765 {\insrsid7104485\charrsid2058765 If so how much \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2058765 {\insrsid7104485\charrsid2058765 \par {\listtext\pard\plain\lang1033\langfe1033\langnp1033\langfenp1033\insrsid7104485\charrsid2058765 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \qj \fi-360\li720\ri0\sl360\slmult1\widctlpar \jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid2058765 {\insrsid7104485\charrsid2058765

Remedies \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2058765 {\insrsid7104485\charrsid2058765 \par The plaintiff adduc}{\insrsid13135234\charrsid2058765 ed the evidence John Keru Kahumbu}{\insrsid7104485\charrsid2058765 who testified that he is the Financial Controller of CITI BANK (U) LTD, the plaintiff\rquote s bank.\~ That between 2000 and 2001 he was charged with the }{\insrsid13135234\charrsid2058765 establishment of the financial un}{\insrsid7104485\charrsid2058765 it of the bank.\~ In 2001 the witness recruited the defendant Collin Semakula as an Ass istant Financial Controller.\~ That in the course of his employment with the plaintiff the defendant was on 21}{\super\insrsid7104485\charrsid2058765 st}{\insrsid7104485\charrsid2058765 July 2004 granted a car loan of shs. 10,000,000/=.\~ The witness tendered in evidence a receipt form whereby the defendant acknowledges receipt of the above sum payable by monthly }{\insrsid13135234\charrsid2058765 installments}{\insrsid7104485\charrsid2058765 shs. 400,000/= with interest at the prevailing staff rate.\~ The receipt form was received in evidence as exhibit P1. \par \par The witness further testified that on 14}{\super\insrsid7104485\charrsid2058765 th}{\insrsid7104485\charrsid2058765 July 2004 the defendant was given a personal loan of shs. 10,500,000/=.\~ The

witness tendered in evidence the defendant\rquote s bank statement in respect of the two loans received in evidence as exhibit P3.\~ The statement showed that the balance outstanding on the car loan on 26}{\super\insrsid7104485\charrsid2058765 th}{\insrsid7104485\charrsid2058765 July 2005 was shs. 4,999,996/=.\~ The balance outstanding on the personal loan was shs. 9,975,514/= as of 27}{\super\insrsid7104485\charrsid2058765 th}{\insrsid7104485\charrsid2058765 June 2005.\~ The witness explained that the bank had stopped charging interest on the above mentioned dates. \par \par The witness further testified that while in the plaintiff\rquote s employment the defendant was in May 2005 }{\insrsid13135234\charrsid2058765 in charge of}{\insrsid7104485\charrsid2058765 the payment of tax to the Uganda Revenue Authority.\~ The plaintiff bank\rquote s cheque payable to Uganda Revenue Authority was intercepted in one of the banks while someone was trying to cash it.\~ The defendant was arrested in connection with that cheque.\~ He was released on police bond which he jumped and never returned to work.\~ His services were thereafter terminated by the bank while with the above outstanding loan repayments. \par \par The plaintiff\rquote s evidence shows that the defendant owed the plaintiff a sum of shs. 4,999,996/= as of 26}{\super\insrsid7104485\charrsid2058765

th}{\insrsid7104485\charrsid2058765 July 2005 on the car loan.\~ Further that the defendant owed the plaint}{\insrsid13135234\charrsid2058765 iff a sum of shs. 9,925,514/= as of}{\insrsid7104485\charrsid2058765 the 27}{\super\insrsid7104485\charrsid2058765 th}{\insrsid7104485\charrsid2058765 June 2005.\~ Both were staff loans on which the float interest was 16.2%.\~ The above evidence is neither denied nor rebutted by any evidence or pleading to the contrary by the defendant.\~ It\rquote s trite that failure to file a defence raises a presumption of constructive admission of the claim made in the plaint and the evidence of the plaintiff.\~ In absence of any contradicting evidence I must accept the plaintiff\rquote s witness\rquote evidence as truthful.\~ In the premises I find that the defendant by the termination of his employment with the plaintiff owed the plaintiff money on both the personal loan and the car loan advanced to him as a staff of the plaintiff.\~ The first issue is answered in the affirmative. \par \par The plaintiff had in its pleadings claimed a sum of shs. 16,495,134/=.\~ However the evidence adduced by the plaintiff has only proved total sum of shs. 14,975,510/= in respect of both loans.\~ The plaintiff is therefore awarded the sum of shs. 14,975,510/= \par \par \par The plaintiff had also claimed interest of 20% per annum.\~ However the evidence adduced

show that the interest charged was 16.2% per annum.\~ The plaintiff stopped charging interest on 26}{\super\insrsid7104485\charrsid2058765 th}{ \insrsid7104485\charrsid2058765 July 2005 and filed this suit on 28}{\super\insrsid7104485\charrsid2058765 th}{\insrsid7104485\charrsid2058765 October 2005.\~ Therefore there was no delay.\~ The plaintiff is therefore awarded interest in the above decretal sum at the rate of 16.7% per annum from 20}{\super\insrsid7104485\charrsid2058765 th}{\insrsid7104485\charrsid2058765 July 2005 until payment in full.\~ The plaintiff is also awarded costs of this suit. \par \par I so order. \par \par \par \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2058765 {\b\insrsid7104485\charrsid2058765 Lameck N. Mukasa \par }{\b\insrsid13135234\charrsid2058765 JUDGE}{\b\insrsid7104485\charrsid2058765 \par 28/04/2007}{\insrsid7104485\charrsid2058765 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2058765 {\insrsid7104485\charrsid2058765 \~}{\insrsid4722358\charrsid2058765 \par }}