Justice Susan Abinyo of the High Court has allowed businessman Emmy Wasirwa to defend himself against a suit filed by Equity Bank Uganda, after finding that the bank continued to levy “dubious and excessive charges” even though he insists he cleared his Shs 750 million loan.
Wasirwa and his company, Wana Solutions, had applied for permission to appear and defend themselves in a suit filed by Equity Bank under the “summary procedure”.
By filing under this procedure, Equity Bank did not want Wasirwa to defend himself unless the court proved that there was a genuine issue worth trying. And that is what the court did.
In the suit, Equity Bank had argued that the businessman still owed the bank large sums of money. The bank said the loan had been restructured on May 4, 2020, and that at the time of the restructure, Wasirwa’s outstanding balance stood at Shs 669 million.
But the court noted that Wasirwa had consistently disputed this claim and accused the bank of loading his account with unexplained interest, penalties, and extra fees, even after he said he had completed his obligations.
Therefore, the dispute over whether the loan was actually paid off and whether the additional charges were legitimate formed the basis of the court’s decision to grant Wasirwa leave to defend himself.
Justice Abinyo observed that these claims were “a serious question of fact that could only be resolved through a full hearing.”
She added that at this stage, the court was not required to determine who was right but simply to decide whether Wasirwa had raised a credible defence.
The court reviewed the draft written statement of defence submitted by Wasirwa, in which he denied owing the bank money and insisted that the second applicant, Wana Solutions, had not guaranteed the loan.
Justice Abinyo also noted gaps and inconsistencies between the bank’s arguments and the borrower’s documents, particularly around the issue of the loan restructuring. She concluded that this, too, was a matter that required proper examination at trial.
Citing previous rulings, Abinyo reiterated that defendants like Wasirwa in summary suits only need to show that there is a real dispute to be resolved. They do not have to prove their innocence at this stage.
In the end, the court ruled in favour of Wasirwa and his company, at least for now.
This means Wasirwa will now face Equity Bank in a regular trial, where the full facts and documents will be examined. She ordered Wasirwa and Wana Solutions to file their defence within ten days from November 11, when the ruling was delivered.
While the decision does not settle the debt dispute, it strengthens Wasirwa’s position by acknowledging that his complaints, especially regarding the allegedly dubious charges imposed by Equity Bank, deserve a full hearing.
For financial institutions like Equity Bank, Justice Abinyo’s ruling is a reminder that courts will scrutinise unexplained penalties and interests levied on borrowers, which remains a contentious issue in Uganda.
