Kampala, Uganda | THE INDEPENDENT | Diamond Trust Bank Uganda and Kenya have filed a notice of appeal challenging the Commercial Court decision directing them to refund 120 Billion Shillings to businessman Hamis Kiggundu.
In the notice, the two banks through their lawyers of K and K Advocates note they are not contented with the ruling by Justice Henry Peter Adonyo.
“Take notice that Diamond Trust Bank Uganda Limited and Diamond Trust Bank Kenya Limited the above-named defendants being dissatisfied with the Judgement and order by Honorable Dr Justice Henry Peter Adonyo delivered on October 7, 2020, intend to appeal against the whole decision to the court of Appeal” reads the notice in part.
On Wednesday, Justice Adonyo ordered Diamond Trust Bank Uganda and Kenya to refund more than 120 Billion Shillings they illegally deducted from two accounts of Kiggundu.
In August 2020, Kiggundu petitioned the court after 85 billion Shillings and 34 billion Shillings were illegally deducted by DTB Uganda and DTB Kenya from two accounts of his companies without his knowledge and consent. The companies are Ham Enterprises and Kiggs International Uganda Limited.
The documents indicate that between 2011 and 2016, Kiggundu through the two companies acquired loans totalling to 41 Billion Shillings from DTB Uganda and Kenya to finance his real estate businesses on condition that he mortgaged his properties in Makerere Hill, Kawuku, Kyadondo and Victoria Crescent Road among other plots of land.
However last year, the banks reportedly served him with documents indicating that he has not met his loan obligation worth 39 billion Shillings as per their agreement and threatened to take over the properties he had mortgaged. As a result, Kiggundu petitioned the commercial court saying that the money that was withdrawn from his dollar and shillings accounts was excess yet he had also fully paid the loan.
Justice Adonyo ruled that DTB Uganda became a principal offender by facilitating the commission of an offence by allowing DTB Kenya which did not have a license to operate in Uganda to do financial businesses in the country.
Adonyo ordered the two banks to refund all the money that was illegally taken from Kiggundu’s accounts amounting to 34 billion shillings and 23m dollars (85 billion Shillings) immediately.
The court also ordered the two banks to return all his land titles citing that the evidence on record indicates that all the loans the businessman had obtained from DTB Uganda were fully settled.
The two banks were also ordered to pay Kiggundu an interest of eight per cent of the money as well as costs for the suit.