Principal Judge Dr. Flavian Zeija has stayed a commercial court decision awarding Shs120bn to businessman Hamis Kiggundu.
The interim order is to last until the Court of Appeal disposes off an appeal filed by Diamond Trust Bank challenging the order to pay Kiggundu.
After listening to grounds advanced by the bank, Dr. Zeija has concluded that there are triable issues that the appellant court must investigate including if one party can gain from an illegal transaction.
Diamond Trust Bank is contesting an order by the commercial court to pay Kiggundu the above money after the same judge found out that Diamond Trust Bank Kenya from whom Kiggundu borrowed the money had no operating license to conduct business in Uganda.
The decision was based on a suit filed by Kiggundu, through his companies; Ham Enterprises and Kiggs International against DTB Bank, accusing the banks of illegally taking out more than Shs120 billion from his bank account in Uganda.
Kiggundu alleges that between 2011 and 2016 his companies were given loans totaling to 41 billion shillings by both DTB Uganda and Kenya and he deposited with them several properties as security.
However, Kiggundu says as his companies were repaying the loans, he realized that 34 billion shillings was illegally removed from his shillings account and 23 million dollars from the dollar account.
In the aftermath, Commercial Court Judge Henry Peter Adonyo agreed with Kiggundu and ruled that the credit facilities offered by DTB-Kenya to Kiggundu were illegal since the bank 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 citing that the evidence on record indicates that all the loans obtained were fully settled. He also ordered for the refund of the monies the banks had deducted illegally from his accounts.