Kampala businessman Hamis Kiggundu has asked the Principal Judge Flavian Zeija to dismiss an application filed by Diamond Trust Bank Uganda and Diamond Trust Bank Kenya seeking to block the implementation of orders directing them to refund Shs120 billion and return his properties.
The two banks want the enforcement of the orders that were issued by the head of the Commercial Court Justice Henry Peter Adonyo early this month to be postponed until the determination of their intended appeal in the Court of Appeal.
On October 5th, Justice Adonyo ordered DTB Uganda to refund all monies deducted from Kiggundu’s accounts in a case involving a syndicated banking agreement between DTB Uganda and DTB Kenya.
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 Shs41 billion 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 Shs34 billion was illegally removed from his shillings account and $23 million from the dollar account.
In the aftermath, Commercial Court Judge 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 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 at law. He also ordered for the refund of the monies the banks had deducted illegally from his accounts.
The Principal Judge will give his ruling on 2nd November.