Kampala – Diamond Trust bank has vowed to take their case to the court of appeal following the 7th October ruling that declared that DTB Bank Kenya conducted business illegally in Uganda when it serviced him credit facilities of about USD6.3M.
This comes after the Commercial Court head Justice Henry Peter Adonyo on Wednesday October 7, 2020 ruled that the credit facilities DTB-Kenya offered to Kiggundu are illegal since it is not licenced by Bank of Uganda as required under the law to carry out financial business in Uganda.
“The act of DTB-Kenya in conducting financial business is licenced in Kenya and it therefore illegally offered the facilities in Uganda. Consequently, this application is allowed with costs,” Adonyo ruled.
In March this year, Kiggundu and his two companies Ham Enterprise Limited and Kiggs International (U) limited dragged DTB -Uganda and DTB-Kenya to the Commercial Court accusing them of fraudulently siphoning over sh120b from his accounts without his knowledge and consent.
Diamond Trust Bank (DTB) – through their lead counsel Kiryowa Kiwanuka, has noted with concern the judgment on October 7th 2020, by the Commercial division of the High Court in the case between the Bank and Ham Enterprises Limited. DTB, in consultation with its legal advisers, has filed a notice of appeal against the judgment of Justice Henry Adonyo,” a statement from the bank read in part.
The bank also said that they look forward to the expeditious resolution of the matter in the Court of Appeal and that they are confident that the case will be determined on its merits.
“The act of DTB-Kenya in conducting financial business is licensed in Kenya and it therefore illegally offered the facilities in Uganda. Consequently, this application is allowed with costs,” Justice Henry Adonyo ruled. The court also ruled that the bank should return the land titles of the mortgage facilities that Ham offered as collateral when acquiring the loan.
However, Kiryowa Kiwanuka, the DTB lead counsel contended the ruling shortly after the session and that they do not agree with the whole judgment and that they have already filed a notice of appeal against it.
He also said that the ruling may promote a culture of debt indiscipline by borrowers, and the same court enters and order that the same defaulter be paid without even evidence.
“It is a new legal regime, it brings a very new principle that a court can determine unliquidated damages without hearing evidence,” he stated.
Fred Muwema, the lead counsel for Hamis Kiggundu said that the court order will be ready for extraction by Monday next week after which they will serve the respondents (DTB).
- RDCs SHAKE UP SECRETS LEAK
- South Sudanese Tycoon Achai Wiir Celebrates Birthday in Style
- FINALLY! Schools Reopen after 2year of COVID-19 Lockdown
- HEADS MUST ROLL! URA boss Orders Military Intelligence to probe Clearing firm for ‘thieving’ Ex-VP Son’s cargo worth UGX 8 billion
- MTN MoMo offers safe, convenient mode of school fees payment
According to the bank, Ham Enterprise Limited is indebted to a tune of $6,298,380 on term loan facility of $6,663,453 and sh2.8b on the demand overdraft facility of sh1.5b, temporary demand overdraft facility of sh1b; $3,662,241 on the term loan facility of $4,000,000 and $4,458,604 on the term loan facility of $500,000.