By Phillip Karugaba , Rachel Musoke , Rehema Nakirya Ssemyalo and Anita Kenyangi The recent controversial decision in Ham Enterprises v Diamond Trust Bank (U) and Diamond Trust Bank (K) Ltd has shaken up Uganda’s banking and finance sector, with many foreign lenders demanding clarity on the matter. Background This is a classic case of borrowing in sunny times, then defaulting and a bitter court battle ensuing when the lender tries to take back its proverbial umbrella during the storm. The plot thickens here. Diamond Trust Bank (K) Ltd, (“DTBK”) is a Kenyan financial institution and parent company to its co-lender, Diamond Trust Bank (U) Ltd. (“DTBU”). Ham Enterprises…
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Usually, by the time one files a suit against the other, they are really out to prove a point. They are emotionally charged and therefore have very exaggerated and heightened expectations from the court and are willing to follow through the entire court process to see that the culprit is penalized and brought to book. They look forward to seeing the other party sweat in the dock while their lawyer fires hot questions. However, in reality, so many considerations affect the outcome of each case and therefore, there is no guarantee that one’s expectations will be wholly met. Accordingly, a…
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