KAMPALA- On October 7, 2020, the commercial head justice Henry Peter Adonyo made a landmark judgment in favour of business man Hamis Kiggundu and his companies Ham Enterprises and Kiggs International against DTB Uganda/Kenya.
The judge instructed the bank to pay him UGX.38bn and USD. 23 he avers that was deducted on his accounts for close to a decade without his knowledge on grounds that they operated illegally in Uganda and such deductions were not called for and should also include eight percent interest plus the legal fees.
In its appeal, DTB together with the Uganda Bankers Association (UBA) filed to the principal Judge Dr. Flavian Zeija who halted the immediate swing of action and transfer of the money to enable further understanding of the judgment.
DTB and UBA’s defence was grounded on matters that such a judgement would cripple the loan portfolio of UGx 5.7 trillion and termed it as a very tough and cruel one that would adversely affect their banks that get money as mother companies.
There has been a faction of media, analysts and other actors saying that it was a syndicated loan and most banks run to their parent companies especially in such instances that require colossal sums of money.
To a common lay man like myself and others, this case drew public attention due to the media since it is normally banks in the driving seat were it is clients chasing on the other side.
In the recent scenarios according to the law any litigants were supposed to make a deposit of 30 percent of the amount in question but Hamis Kiggundu had a partial win and this was thrown out on matters of fairness.
The decision on stay of execution pending appeal will be heard tomorrow Monday November 2nd 2020 at the courts of appeal.
Back ground of the Case.
Hamis Kiggundu has had a long banking relationship with DTB Uganda for close to 10 years and the bank has extended loans to him through Ham Enterprises Ltd and Kiggs International Ltd.
According to the bank’s lawyers Kiwanuka Kiryorwa and company Advocates, the advancements were broken down to USD 6.6M, USD 4M, USD. 500, 000 , UGX.1.5 bn , UGX 1bn with security properties in Kyadondo Block 248, Plot 328, land at Kawuku Block 9, Block 36- 38 along Makerere.
As an on-looker, all the best for both parties!
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