Businessman Rajni Tailor has been ordered to clear his outstanding loan and accruing interest amounting to more than Shs141 million.
Tailor was ordered by the Commercial Court on Monday.
Presiding Judge Susan Abinyo said she was not convinced by the businessman’s explanation that he had fully paid back his loan of Shs70.6 million to Prime Finance Company that he had obtained over five years ago.
Tailor faces a six months jail sentence should he fail to pay back the loan.
“Following the above discourse between between the parties and the proposed settlement by the applicant (Mr Tailor), I find the applicant’s assertion that he paid the loan facility of $20,000 in three equal instalments before the lapse of the loan period…unacceptable in the circumstances,” Justice Abinyo stated.
“The application is dismissed and court makes the following orders; a decree is hereby entered for the plaintiff in the sum of $40, 048 (over shs141 million) and the respondent and the plaintiff is granted costs of this application and the main suit.”
On August 6, 2016, Tailor entered into a loan agreement with Prime Finance Company for a personal loan of $20,000 (Shs70.6 million).
The said loan was to be repayable in three weeks by August 27, the same year.
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