NIYIGENA v ECOBANK RWANDA PLC ET. AL.

NIYIGENA v ECOBANK RWANDA PLC ET. AL.

Ecobank Rwanda Plc unlawfully sold Kantarama Félicie's collateral after the guaranteed loan was repaid, without proper registration or consent for subsequent loans. The mortgage agreement did not clearly specify or inform the guarantor about future debts, violating statutory and doctrinal requirements. Ecobank is liable for compensation to Kantarama Félicie and Niyigena Eraste.

Citation
RLR V.2-2025
Parties
Applicant: Niyigena Eraste; Respondent: Ecobank Rwanda Plc; Interested Party: Kantarama Félicie
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
28 June 2024
Case Number
RS/INJUST/RCOM 00005/2023/SC
Procedural Posture
Civil / Review of Commercial High Court Judgment by Supreme Court
Outcome
application for review founded; previous judgment changed in all parts
Legal Topics
Suretyship, Mortgage, Provision of Security, Collateral, Damages
Source Language
en
Contracts Civil Procedure Banking Law Suretyship Mortgage Provision of Security Collateral Damages

Case Brief

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Parties

Niyigena Eraste

Applicant

Ecobank Rwanda Plc

Respondent

Kantarama Félicie

Interested Party

Procedural Posture

Civil / Review of Commercial High Court Judgment by Supreme Court

Legal Issues

  1. 1 Whether Ecobank had the right to use collateral provided by Kantarama Félicie for loans beyond the initial guaranteed loan without her consent
  2. 2 Whether Ecobank properly registered the collateral for subsequent loans
  3. 3 Determination of damages and compensation for wrongful sale of collateral

Ratio Decidendi

Ecobank Rwanda Plc unlawfully sold Kantarama Félicie's collateral after the guaranteed loan was repaid, without proper registration or consent for subsequent loans. The mortgage agreement did not clearly specify or inform the guarantor about future debts, violating statutory and doctrinal requirements. Ecobank is liable for compensation to Kantarama Félicie and Niyigena Eraste.

Court Disposition

application for review founded; previous judgment changed in all parts

Orders

  • Ecobank Rwanda Plc to pay Kantarama Félicie 261,173,067 Frw
  • Ecobank Rwanda Plc to pay Kantarama Félicie 1,400,000 Frw for counsel’s fees