Rwanda Case Law

EQUITY BANK RWANDA PLC v. BES & SUPPLY LTD N’UNDI

Court

Supreme Court

Case number

RS/INJUST/RCOM 00003/2021/SC

The Supreme Court found no evidence that the original debt of 217,000,000 Frw secured by the mortgage was repaid. The bank's account history showed the debt remained outstanding, and the respondent failed to prove repayment. The mortgage agreement therefore remains valid until the debt is fully paid, regardless of the expiry date in the mortgage contract or subsequent agreements. The request to cancel the mortgage was denied, and the respondent was ordered to pay legal costs.

Source excerpt

• Mortgage agreements
• Secured transactions
• Bank loans
• Collateral enforcement
• Judicial review
• Burden of proof

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LETSHEGO RWANDA Ltd v. DUSABIMANA N’ UNDI

Court

Commercial High Court

Case number

RCOMA 00527/2022/HCC

The Commercial High Court dismissed Letshego Rwanda Ltd’s appeal, finding no evidence that the respondents intended to dispose of immovable property to evade debt payment.

• Interim measures
• Injunctions
• Secured transactions
• Debt recovery
• Interim-measures
• Debt-recovery

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VUNINGOMA N’UNDI v. BRD LTD N’UNDI

Court

Court of Appeal

Case number

RCOMAA 00088/2020/CA

The Court of Appeal lacks jurisdiction over the second appeal because the subject matter—determining whether the liquidator or receiver should sell the collateral—cannot be valued in monetary terms. Therefore, the appeal is inadmissible.

Source excerpt

• Jurisdiction of appellate courts
• Secured transactions
• Liquidation and receivership
• Costs and attorney fees

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URWEGO OPPORTUNITY BANK LTD vs GATERA N’ABANDI

Court

Court of Appeal

Case number

RCOMAA 00067/2019/CA (

Gatera Venuste failed to comply with the statutory time limits for challenging the auction, both in petitioning the Registrar General and in filing suit in the Commercial Court. The claim was filed after the permissible period, rendering the lower courts' acceptance and annulment of the auction unlawful. Consequently, all lower court decisions based on the untimely claim are annulled.

Source excerpt

• Auction annulment
• Procedural time limits
• Secured transactions
• Judicial review of auction
• Bank loan default

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DEVELOPMENT BANK OF RWANDA LTD (BRD Ltd) v. SPLENDID KALISIMBI Ltd

Court

Court of Appeal

Case number

RCOMAA 00058/2018/CA

Once insolvency proceedings are initiated and confirmed by court, no asset of the insolvent company—including those given as collateral—may be separated and sold before the distribution plan for creditors is approved, regardless of the existence of security interests. The appeal by BRD Ltd lacks merit as the law mandates collective satisfaction of creditors' claims through the liquidation process.

Source excerpt

• Corporate insolvency
• Secured transactions
• Liquidation proceedings
• Creditor rights

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DEVELOPMENT BANK OF RWANDA LTD (BRD Ltd) v. SPLENDID KALISIMBI Ltd

Court

Court of Appeal

Case number

RCOMAA 00058/2018/CA

The appeal by BRD Ltd lacks merit because, under Rwandan insolvency law, once insolvency proceedings are initiated and the company is declared insolvent, all enforcement actions—including the sale of collateral—are stayed. The secured creditor (BRD Ltd) must await the distribution plan along with other creditors. The lower courts correctly applied the law, and there was no error in their refusal to allow BRD Ltd to enforce its security independently. The request for excessive legal costs by the respondent was partially granted in a reduced amount.

Source excerpt

• Corporate insolvency
• Secured transactions
• Distribution of assets in liquidation
• Stay of proceedings upon insolvency

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