The Principal Judge Flavian Zeija has issued an order staying execution of High Court the Commercial Division judge Henry Peter Adonyo’s judgement in which he had ordered DTB to return all mortgages which Ham had surrendered to this bank in acquisition of a loan from DTB Kenya.
In the Principal Judge’s decision delivered on Monday morning by Julius Mwesigye his Principal Secretary, Zeija said he found it necessary to stay this execution of High court order because once it’s not done at this time the appeal may be rendered irrelevant.
Zeija thus ruled for the status quo to be maintained so that Court of Appeal can inquire into syndicated loans to come up with a final decision on the same.
“There is a serious or imminent threat of execution of the order and if the application is not granted, the appeal would be rendered nugatory. If the mortgages(security) are released (by DTB), it presents a high risk as these titles can be transferred and defeats the only security the applicants (DTB) have against the respondents (Ham).”
The Principal Judge noted that the applicants acted within time when they filed their notice of appeal immediately (same day) after the said judgement was issued.
Last month High court judge Henry Peter Adonyo declared the financial transactions in which DTB Kenya extended loan facility to Ham Enterprises Uganda as an illegal transaction since the proper process was not followed.
DTB was ordered to refund 120 billion shillings which were illegally deducted from Ham’s accounts on top of refunding all the securities he had surrendered to this bank in the process of obtaining this loan.