ECOBANK Ltd v. NDAYAMBAJE

ECOBANK Ltd v. NDAYAMBAJE

The Supreme Court held that since Ndayambaje did not repay the loan by the agreed date and there was no evidence that ECOBANK Ltd had released him from liability for the debt or interest, interest continued to accrue until full repayment. The bank's delay in enforcing the security did not absolve the borrower from paying interest as contractually agreed.

Citation
RCOMA 0044/12/CS
Parties
Appellant: ECOBANK Ltd; Respondent: Ndayambaje Emmanuel
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
7 November 2014
Case Number
RCOMA 0044/12/CS
Procedural Posture
Commercial Appeal / Supreme Court Judgment
Outcome
Appeal allowed. Lower court decision reversed.
Legal Topics
Loan Agreements, Default Interest, Enforcement of Security, Contractual Obligations
Source Language
rw, en
Contract Law Banking Law Loan Agreements Default Interest Enforcement of Security Contractual Obligations

Case Brief

Summary, issues, holding and outcome

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Parties

ECOBANK Ltd

Appellant

Ndayambaje Emmanuel

Respondent

Procedural Posture

Commercial Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Whether ECOBANK Ltd was entitled to continue charging interest after the loan maturity date despite delay in enforcing the security.
  2. 2 Whether the lower court erred in stopping the accrual of interest after the loan maturity date.

Ratio Decidendi

The Supreme Court held that since Ndayambaje did not repay the loan by the agreed date and there was no evidence that ECOBANK Ltd had released him from liability for the debt or interest, interest continued to accrue until full repayment. The bank's delay in enforcing the security did not absolve the borrower from paying interest as contractually agreed.

Court Disposition

Appeal allowed. Lower court decision reversed.

Orders

  • Ndayambaje Emmanuel to pay ECOBANK Ltd 123,480,096 RWF plus 1,000,000 RWF for legal costs, totaling 124,480,096 RWF.
  • Ndayambaje to pay the costs of the proceedings.