RWANDA TEA TRADING LTD v GT BANK LTD

RWANDA TEA TRADING LTD v GT BANK LTD

Rwanda Tea Trading Ltd breached the loan agreement by failing to repay the loan and interest by the contractual deadline. The stoppage of the Gatare Tea Factory project did not constitute force majeure excusing performance, as the obligation was to repay money, which is not excused by such events. GT Bank Ltd was entitled to the outstanding principal, contractual interest, and partial legal fees.

Citation
RLR V.4-2021
Parties
Appellant: Rwanda Tea Trading Ltd; Respondent: GT Bank Ltd
Court
Court of Appeal
Jurisdiction
Rwanda
Judgment Date
22 February 2019
Case Number
RCOMAA 00037/2018/CA- RCOMAA 00023/2018/SC
Procedural Posture
Commercial Appeal / Final Appellate Judgment (court of Appeal)
Outcome
Appeal dismissed for Rwanda Tea Trading Ltd; cross-appeal by GT Bank Ltd allowed in part.
Legal Topics
Loan Agreements, Force Majeure, Breach of Contract, Interest Calculation, Suretyship
Source Language
en, rw
Contract Law Banking Law Loan Agreements Force Majeure Breach of Contract Interest Calculation Suretyship

Case Brief

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Parties

Rwanda Tea Trading Ltd

Appellant

GT Bank Ltd

Respondent

Procedural Posture

Commercial Appeal / Final Appellate Judgment (court of Appeal)

Legal Issues

  1. 1 Whether Rwanda Tea Trading Ltd breached the loan agreement with GT Bank Ltd
  2. 2 Whether the stoppage of the Gatare Tea Factory project constituted force majeure excusing performance
  3. 3 Whether GT Bank Ltd was entitled to interest and penalties as per the contract

Ratio Decidendi

Rwanda Tea Trading Ltd breached the loan agreement by failing to repay the loan and interest by the contractual deadline. The stoppage of the Gatare Tea Factory project did not constitute force majeure excusing performance, as the obligation was to repay money, which is not excused by such events. GT Bank Ltd was entitled to the outstanding principal, contractual interest, and partial legal fees.

Court Disposition

Appeal dismissed for Rwanda Tea Trading Ltd; cross-appeal by GT Bank Ltd allowed in part.

Orders

  • Rwanda Tea Trading Ltd to pay GT Bank Ltd the outstanding loan balance and interest totaling 255,279,610 Frw.
  • Rwanda Tea Trading Ltd to pay GT Bank Ltd 700,000 Frw as legal fees at this level.