Shine Pay (U) Ltd v Kiyonga Francis - (HCT-00-CC-CS 547 of 2004)
Shine Pay (U) Ltd v Kiyonga Francis - (HCT-00-CC-CS 547 of 2004) [2006] UGCommC 8 (26 March 2006)
The court found that the defendant was indebted to the plaintiff in the sum of US $2,639 under a loan agreement. Although the agreement provided for a penalty interest of 15% per month on defaulted instalments, the court held that this rate, amounting to 180% per annum, was manifestly excessive and unconscionable, especially given the friendly nature of the loan. The court exercised its discretion to award interest at a commercial rate of 25% per annum from the date of filing the suit until payment in full. The plaintiff was also awarded costs of the suit, with interest at the court rate from…
Source excerpt
- Loan Agreements
- Contractual Interest
- Summary Procedure
- Excessive Interest
- Discretionary Interest Award