The Court of Appeal has ordered for the retrial of a case in which businessman Hamis Kiggundu and DTB Limited are fighting over a loan advanced to him through his Ham Enterprises.
In a unanimous judgement delivered today, the judges quashed last year’s orders of the lower court that outlawed the loans advanced to Ham Enterprises.
The judges, Richard Buteera (deputy chief justice), Christopher Madrama and Kenneth Kakuru faulted the High Court Henry Peter Adonyo for failing to appreciate the law and the evidence on record.
They also ordered the businessman to lay legal costs incurred by the bank.
In the lead judgement, Justice Madrama observed that although the contract is illegal, it was wrong for the High Court to order the bank release the securities and refund his money.
The appeal Court judges held that the amendments filed by Ham Enterprises in the High Court were illegal for introducing new issues.
DTB Uganda and DTB Kenya ran to the Court of Appeal against Ham Enterprises, Kiggs International Limited and Mr Kiggundu following an October 12 2020 judgment of the Commercial Court which ordered the bank to refund $23.2 million and UGX34 billion to Kiggundu.
Through their lawyers, the banks successfully sought to reverse the High Court judgment reasoning that transactions were lawful.
They also state that the DTB in Uganda acted lawfully and that it was not an agent for their Kenyan counterparts.
However, Ham Enterprises through their lawyers led by Fred Muwema said that judges addressed their minds to the facts and law yet the banks committed illegalities.
Beyond the Balance Sheet: How Uganda's Top CFOs Are Forging Legacy Through Purpose, People, and Unwavering Integrity“We are going to appeal to the Supreme Court against the appeal Court decision. All the matters were admitted but the judges instead relied on an order of audit and our amendment that introduced illegalities yet they were never challenged,” Muwema said in an interview.
He also faulted the Coram of three judges for declining to handle the matters as presented to them.
In the complaint, Kiggundu accuse the bank of withdrawing UGX120 billion from his accounts without his consent.
DTB is represented by Kiryowa Kiwanuka of K& K Chambers while Ham Enterprises is represented by Fred Muwema of Muwema and Company Advocates.
Last year orders
Justice Peter Adonyo had ordered Ham Enterprises to recover Shs34 billion and $23.2 million being monies that were deducted by the banks from Ham’s accounts.
He also declared that DTB Kenya is not licensed to conduct financial business in Uganda and therefore the loans given to Ham Enterprises were irregular, null and void.
The court also cancelled the mortgages and ordered the banks to return the property to Ham reasoning that the loan transactions were illegal.
The properties which Ham Enterprises provided as security for the loans include several properties at Kyadondo, Kawuku, Victoria Crescent 11 and Makerere Hill Road.
