The Commercial Division of the High Court in Kampala has ordered CRT Group Limited to pay Stanbic Bank Uganda Limited more than Sh162 million after finding that the company effectively admitted the debt in its defence filings.
The ruling was delivered by Hon. Lady Justice Dr. Ginamia Melody Ngwatu in Miscellaneous Application No. 956 of 2024, arising from Civil Suit No. 381 of 2024, in which Stanbic Bank sued CRT Group Limited and Rwenzori Agro Processing Ltd over an unpaid invoice discounting facility.
The dispute stemmed from a Sh150 million loan advanced by Stanbic Bank to CRT Group Limited on 5 July 2023 to support business operations backed by invoices and a local purchase order. The bank told court that the borrower later defaulted, prompting recovery proceedings for Sh172,393,824 together with interest and damages.
Stanbic Bank, through its lawyers, applied for judgment on admission, arguing that CRT Group’s written defence amounted to an acknowledgment of the borrowing, receipt of funds, and failure to fully repay the facility. The bank maintained that there were no triable issues requiring a full trial and that the debt was not seriously disputed.
CRT Group opposed the application, insisting it had not admitted liability. Its director, Mr. Agaba Ronald, argued that the company’s failure to repay was caused by supervening events, including price fluctuations and aflatoxin contamination in maize, which it said frustrated the contract and discharged its obligations. The company also argued that the dispute required full hearing to determine the effect of those events.
In her ruling, Justice Ngwatu rejected the defence of frustration, holding that the issues raised did not meet the strict legal threshold required to discharge contractual obligations. The court found that the alleged admissions in the written statement of defence were clear, unambiguous, and sufficient to warrant judgment on admission.
The judge further held that price fluctuations and aflatoxin contamination in agricultural commodities were foreseeable risks and could not be relied upon to defeat a repayment obligation under a banking facility.
However, the court noted that CRT Group had made a partial payment of Sh10 million, which was not disputed by Stanbic Bank, and therefore deducted it from the total claim.
The court consequently entered judgment on admission in favour of Stanbic Bank and ordered CRT Group Limited to pay Sh162,393,824 being the outstanding balance, Sh40 million in general damages, interest at 6 percent per annum on the principal sum, and costs of the suit and application.
The ruling reinforces the legal principle that courts may enter judgment on admission where pleadings clearly acknowledge liability, even where a defendant attempts to rely on defences such as frustration to delay or contest repayment obligations.
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