Justice Flavian Zeija, the Principal Judge will on Monday November 2, 2020, issue the final verdict in the Appeal that was made by Diamond Trust Bank (DTB), challenging the Commercial Court Decision in favor of Ham Enterprises and Hamis Kigundu early this month.
DTB appealed the judgement of High Court which nullified a syndicated loan that Hamis acquired from the bank.
The Bank argues that this ruling threatens the future of the banking sector in Uganda.
The Commercial Division Court Judge, Justice Henry Peter Adonyo this month ruled that DTB Kenya (DTBK) acted illegally in lending money to Ham Enterprises owned by Kigundu.
DTB is battling Kiggundu over Shs39.7bn which he acquired to facilitate his businesses and failed to pay back.
Justice Adonyo noted that DTBK didn’t have a license from Bank of Uganda, to carry out operations as provided for under the Financial Institutions Act 2004.
He ordered the banks to refund the Shs34bn and $23m, which they deducted from Hamis Enterprise account unlawfully. After the Appeal, the High Court halted the execution of the order.
In their submission on Monday October 26, DTB Lawyers led by Kiryowa Kiwanuka told Justice Zeija that the decision by High Court will cause substantial loss to their client.
Speaking reporters shortly after the Court session, Council Fred Muwema, the lead Council of Ham Enterprises noted that not all businesses which are ordered by Court to pay damages, suffer substantial loss as argued by their DTB counterparts
“We opposed their application because the High Court was right, DTB broke the rules that govern the banking industry and it is not true that they will suffer the substantive loss,” he said
“On several occasions people are asked to pay damages, but it does not imply that they suffer substantial loss,” he added.
Muwema said that DTB has to return the money since it lost the case.
“Let them return the money which they took unlawfully. It is inconvenient for the bank which lost the case, to stay with the money some levels of convenience need to be done here,” he said.