Kiggundu seeks to adduce additional evidence from the Central Bank of Kenya to substantiate alleged illegality committed by DTB Kenya in disputed credit transactions.
In a dramatic twist to the protracted legal battle between businessman Hamis Kiggundu and Diamond Trust Bank (DTB) Uganda and DTB Kenya, Kiggundu has petitioned the Supreme Court, requesting the court to postpone its planned judgment delivery in the case. The application, filed on June 9, seeks to arrest the judgment and allow Kiggundu to introduce additional evidence from the Central Bank of Kenya, shedding light on the alleged illegality committed by DTB Kenya in the disputed credit transactions.
The case dates back to a syndicated banking agreement between Ham Enterprises Limited, Kiggs International Limited, and the two banks. Kiggundu had obtained loans totaling over Shs 120 billion from DTB Uganda and DTB Kenya between 2011 and 2016 to finance his real estate business. However, a dispute arose when the banks claimed that Kiggundu had failed to fulfill his loan obligations, amounting to Shs 39 billion. They threatened to seize the mortgaged properties, prompting Kiggundu to petition the Commercial Court.
In October 2020, Commercial Court Judge Henry Peter Adonyo ruled in favor of Kiggundu, ordering DTB Uganda to refund all funds deducted from his accounts, alleging these deductions were made without his consent. The court records indicate that Kiggundu had already made full repayment, and the withdrawn funds exceeded the outstanding loan amount.
Unsatisfied with the decision, the banks sought relief from the principal judge, Dr. Flavian Zeija, who granted an order to stay the execution of Adonyo’s orders, preventing Kiggundu from recovering the funds. The banks subsequently appealed to the Court of Appeal, which overturned Adonyo’s order and ordered a retrial before a different judge.
Discontent with the Court of Appeal’s decision, Kiggundu lodged an appeal with the Supreme Court. However, he now seeks to defer the judgment, citing seven grounds, including the alleged error in law and fact by the Court of Appeal justices and their failure to address the substantial question of illegality at the heart of the matter.
Kiggundu contends that during the appeal hearing on November 11, 2021, the banks admitted the grounds of appeal. Consequently, he filed an application seeking judgment based on this admission. However, Kiggundu claims that despite numerous requests to be heard, the Supreme Court did not grant them an opportunity, only notifying them of the scheduled judgment delivery on June 13 during a pre-hearing session.
In his recent application, Kiggundu reveals that the Central Bank of Kenya did not grant the necessary approval for DTB Kenya to enter into the disputed credit transaction, a piece of information or evidence he claims was not known to him during the appeal hearing. He deems this information to be highly relevant to the cross-border financial institution business of the banks, which forms the crux of the pending appeal.
The Supreme Court judgment, if delivered as scheduled, will determine the outcome of Kiggundu’s appeal and have far-reaching implications for the ongoing legal dispute between Kiggundu and DTB Uganda and DTB Kenya.
Last week, tensions escalated outside the Supreme Court when DTB lawyers, led by Edwin Karugire, requested the court to dismiss Kiggundu’s application, arguing its irrelevance and intent to waste the court’s time. With the fate of the judgment hanging in the balance, the court’s decision on Kiggundu’s application will be closely watched by legal experts and parties involved in the high-stakes case.
As the legal battle continues to unfold, stakeholders eagerly await further developments in this complex commercial dispute that has captured the attention of the Ugandan business community.
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