The High Court in Kabale has ruled against Rubanda District Engineer, John Habimana, in a civil suit involving a disputed loan of over Shs 140 Million, awarding judgment in favor of Atuhairwe Sam.
The case stemmed from a failed business transaction linked to a road construction project in Kanungu District, where Atuhairwe claimed he had advanced funds to Habimana to facilitate the contract.
Habimana, however, disputed the total debt and applied for leave to defend the suit.
Presiding judge Karoli Lwanga Ssemogerere dismissed Habimana’s application on procedural grounds, citing failure to serve sealed summons and late submission of court documents, which rendered his defense “incurably defective.”
Consequently, judgment was entered against him under Order 36 Rule 5 of the Civil Procedure Rules.
While ruling in Atuhairwe’s favor, the judge criticized the agreed 30% monthly interest rate as excessive and illegal, instead reducing it to 1.5% per month in accordance with Section 26(1) of the Civil Procedure Act.
The court ordered Habimana to pay the reconciled debt amount, interest, and legal costs.
Justice Ssemogerere used the case to underscore the dangers of informal financial arrangements involving public officials, and the importance of adhering to legal procedures.
“Justice is dispensed not just in the name of the parties, but in the name of the people of Uganda,” he noted.
