Bank of Africa- Uganda Limited v Valley Technical Services Limited & 2 Others
Bank of Africa- Uganda Limited v Valley Technical Services Limited & 2 Others (Civil Suit 148 of 2020) [2024] UGCommC 232 (7 August 2024)
The court found that the Plaintiff advanced a loan facility of UGX 200,000,000 to the 1st Defendant, secured by personal guarantees from the 2nd and 3rd Defendants. The facility was to be repaid within 12 months from 6th November 2018. Despite disputes over termination and renewal, the Defendants admitted receipt and utilization of the funds, and failed to repay the principal and contractual interest. The court rejected the Defendants' arguments regarding premature termination and lack of liability, holding that the obligation to repay subsisted regardless of the Plaintiff's actions. The cour…
Source excerpt
- Credit Facility Disputes
- Personal Guarantees
- Loan Repayment Obligations
- Contractual Interest
- Default Penalties