Hamis Kiggundu (C) consults his lawyers during the hearing of the case in Kampala recently. PHOTO/ALFRED OCHWO Kampala, Uganda | THE INDEPENDENT | The Principal Judge Dr Flavian Zeija has stayed the implementation of Commercial Court orders directing Diamond Trust Bank Uganda and Diamond Trust Bank Kenya to refund 120 billion shillings and to return properties to businessman Hamis Kiggundu.
The Principal Judge on Monday issued the orders following a successful application by the two banks which wanted the execution of the orders stayed until the determination of their appeal before the Court of Appeal.
The ruling stems from the decision last month by Commercial Court Judge Dr Henry Peter Adonyo ordering DTB Uganda to refund all money deducted from Kiggundu’s accounts in a case involving a syndicated banking agreement between DTB Uganda and DTB Kenya.
Kiggundu through his companies; Ham Enterprises and Kiggs International, had sued DTB Bank, accusing the banks of illegally taking away more than 120 billion Shillings from his bank account in Uganda.
Kiggundu said that between 2011 and 2016, his companies were given loans totaling to 41 billion shillings and he deposited with the banks several properties as security. However, Kiggundu told court in his petition that as his companies were repaying the loans, he realized that the banks had not disbursed the money, yet it was reportedly being removed from his accounts without his knowledge and consent.
As a result, Kiggundu argued that 34 billion shillings was illegally removed from his shillings account and 23 million dollars from the dollar account and that he had also cleared the loans in question.
Following this, the Commercial Court Judge Adonyo agreed with Kiggundu and ruled that the credit facilities offered by DTB-Kenya to Kiggundu were illegal since DTB Kenya is not licensed to carry out the financial institution business in Uganda.
Adonyo also ordered the banks to return the properties that Kiggundu had mortgaged, refund the money the banks had deducted illegally from his accounts. The Judge also awarded costs to Kiggundu and imposed an interest of eight percent on the money and several declarations.
But the banks through their lawyers led by Kiryowa Kiwanuka petitioned the Principal Judge Dr Flavian Zeija asking him to issue orders such that they do not implement Justice Adonyo’s decision.
Kiryowa Kiwanuka argued that if the application is not granted, the banks were to suffer substantial loss by being required to pay 120 billion shillings and approximately 9.6 […]
