KAYITESHONGA v. BRD

KAYITESHONGA v. BRD

The Supreme Court held that the lack of legal personality of COPROVAB did not invalidate the surety agreement, as the sureties had full capacity and voluntarily undertook liability. The surety agreement was valid and enforceable, and BRD was entitled to claim directly from the sureties as per the contract and law....

Source-derived case information.

Citation
RCOMA 0102/10/CS
Parties
Appellant: Kayiteshonga Callixte; Respondent: Banki y’u Rwanda Itsura Amajyambere (BRD)
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
6 July 2012
Case Number
RCOMA 0102/10/CS
Procedural Posture
Civil Appeal / Supreme Court Final Judgment
Outcome
appeal dismissed; lower court judgment affirmed
Legal Topics
Loan Agreements, Suretyship, Corporate Legal Personality, Enforcement of Guarantees
Source Language
rw
Contract Law Banking Law Loan Agreements Suretyship Corporate Legal Personality Enforcement of Guarantees

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Parties

Kayiteshonga Callixte

Appellant

Banki y’u Rwanda Itsura Amajyambere (BRD)

Respondent

Procedural Posture

Civil Appeal / Supreme Court Final Judgment

  1. 1 Whether the surety agreement of 31/01/2005 is valid despite the principal debtor (COPROVAB) lacking legal personality
  2. 2 Whether BRD can claim directly from the sureties without first proceeding against COPROVAB
  3. 3 Whether BRD is entitled to damages for being drawn into litigation

Ratio Decidendi

The Supreme Court held that the lack of legal personality of COPROVAB did not invalidate the surety agreement, as the sureties had full capacity and voluntarily undertook liability. The surety agreement was valid and enforceable, and BRD was entitled to claim directly from the sureties as per the contract and law. The appeal had no merit.

Court Disposition

appeal dismissed; lower court judgment affirmed

Orders

  • Kayiteshonga Callixte to pay court costs of 37,250 Frw within eight days, failing which enforcement will proceed against his assets.
  • The judgment of the Commercial High Court (RCOM 0252/09/HCC) dated 19/10/2010 remains unchanged.