ARLCOM_Ltd_v._ECOBANK_RWANDA_Ltd_460795_en

ARLCOM_Ltd_v._ECOBANK_RWANDA_Ltd_460795_en

Uwamahoro Florent de la Paix, as personal guarantor and signatory to relevant loan documents, is jointly liable with ARLCOM Ltd for the loan repayment. Interests and late fees should not accrue after the loan contract was cancelled and the mortgage, which exceeded the loan value, should have been sold to satisfy the debt. The correct loan amount is based on the expert's calculation, with deductions for uncredited cheques and unexplained withdrawals. The total liability is set at 647,221,724 Frw including interests and late fees, plus procedural and counsel fees.

Citation
RLR V.3-2019
Parties
Appellant: ARLCOM Ltd; Appellant: Uwamahoro Florent de la Paix; Respondent: Ecobank Rwanda Ltd
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
21 May 2018
Case Number
RCOMAA0020/15/CS
Procedural Posture
Civil Appeal / Supreme Court Judgment
Outcome
Appeal and cross-appeal both allowed in part; previous judgment reversed in part regarding loan amount; joint liability affirmed.
Legal Topics
Loan Agreement, Guarantee Liability, Mortgage Enforcement, Interest Computation, Late Fees, Procedural Fairness
Source Language
en, rw
Contract Law Banking Law Secured Transactions Loan Agreement Guarantee Liability Mortgage Enforcement Interest Computation Late Fees +1 more

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Parties

ARLCOM Ltd

Appellant

Uwamahoro Florent de la Paix

Appellant

Ecobank Rwanda Ltd

Respondent

Procedural Posture

Civil Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Whether Uwamahoro Florent de la Paix should be jointly liable with ARLCOM Ltd for the loan repayment to Ecobank Rwanda Ltd
  2. 2 Whether interests and late fees should continue to accrue after cancellation of the loan contract and provision of mortgage
  3. 3 Whether the calculation of the outstanding loan, interests, and late fees by Ecobank Rwanda Ltd was correct

Ratio Decidendi

Uwamahoro Florent de la Paix, as personal guarantor and signatory to relevant loan documents, is jointly liable with ARLCOM Ltd for the loan repayment. Interests and late fees should not accrue after the loan contract was cancelled and the mortgage, which exceeded the loan value, should have been sold to satisfy the debt. The correct loan amount is based on the expert's calculation, with deductions for uncredited cheques and unexplained withdrawals. The total liability is set at 647,221,724 Frw including interests and late fees, plus procedural and counsel fees.

Court Disposition

Appeal and cross-appeal both allowed in part; previous judgment reversed in part regarding loan amount; joint liability affirmed.

Orders

  • Uwamahoro Florent de la Paix and ARLCOM Ltd to jointly pay Ecobank Rwanda Ltd 647,221,724 Frw (debt, interests, late fees, and current account debit)
  • Appellants to pay 1,000,000 Frw as procedural and counsel fees