Mukesh v Bank of Baroda (Uganda) Limited
Mukesh v Bank of Baroda (Uganda) Limited (Miscellaneous Application 2013 of 2023) [2023] UGCommC 208 (28 September 2023)
The court held that the act of writing off the overdraft facility by the respondent bank was an internal accounting procedure for risk mitigation and did not amount to forgiveness of the debt or discharge of the borrower and surety from liability. The applicant, as surety, remains liable for the outstanding balance, and the security for the overdraft (the mortgage and owner's copy of the certificate of title) cannot be released until the debt is fully repaid. The legal effect of a write-off does not extinguish the creditor's right to recover the debt, and the applicant's claim for release of…
Source excerpt
- Debt Write Off Effect
- Mortgage Release
- Credit Facility Liability
- Surety Obligations