NGARAMBE v ACCESS

NGARAMBE v ACCESS

The guarantee and collateral provided by AGABA K. Silver over jointly owned property without his wife's consent is invalid under Rwandan law. Therefore, only NGARAMBE Joseph is liable for the loan. The bank is entitled to recover the principal and interest at the contractual rate of 18%, not 22%. The bank is awarded partial legal costs, but Mukagashagaza is not entitled to damages as she intervened voluntarily.

Citation
RCOMA 0018/13/CS
Parties
Appellant/defendant: NGARAMBE Joseph; Respondent/plaintiff: ACCESS BANK RWANDA Ltd; Third Party/guarantor: AGABA K. Silver; Intervener (wife of Agaba): MUKAGASHAGAZA Claudine
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
2 October 2015
Case Number
RCOMA 0018/13/CS
Procedural Posture
Commercial Appeal / Supreme Court Final Judgment
Outcome
Appeal dismissed; cross-appeal partially allowed.
Legal Topics
Guarantee Contracts, Marital Property Regime, Bank Loan Recovery, Invalidity of Collateral, Interest Rate on Loans
Source Language
rw, en
Contract Law Family Law Banking Law Guarantee Contracts Marital Property Regime Bank Loan Recovery Invalidity of Collateral Interest Rate on Loans

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Parties

NGARAMBE Joseph

Appellant/defendant

ACCESS BANK RWANDA Ltd

Respondent/plaintiff

AGABA K. Silver

Third Party/guarantor

MUKAGASHAGAZA Claudine

Intervener (wife of Agaba)

Procedural Posture

Commercial Appeal / Supreme Court Final Judgment

Legal Issues

  1. 1 Whether the guarantee and collateral provided by AGABA K. Silver without spousal consent is valid under Rwandan law when the property is jointly owned under community of property regime.
  2. 2 Whether NGARAMBE Joseph and AGABA K. Silver are jointly liable for the bank loan.
  3. 3 Whether the bank is entitled to claim interest at 22% or only at the contractual 18%.

Ratio Decidendi

The guarantee and collateral provided by AGABA K. Silver over jointly owned property without his wife's consent is invalid under Rwandan law. Therefore, only NGARAMBE Joseph is liable for the loan. The bank is entitled to recover the principal and interest at the contractual rate of 18%, not 22%. The bank is awarded partial legal costs, but Mukagashagaza is not entitled to damages as she intervened voluntarily.

Court Disposition

Appeal dismissed; cross-appeal partially allowed.

Orders

  • NGARAMBE Joseph to pay ACCESS BANK RWANDA Ltd 34,929,261 Frw (principal and 18% interest).
  • NGARAMBE Joseph to pay ACCESS BANK RWANDA Ltd 800,000 Frw in legal costs (including 500,000 Frw for this appeal and 300,000 Frw from lower court).