June 12, 2023

The case that Kampala businessman Hamis Kiggundu aka Ham filed against Diamond Trust Bank (DTB) Uganda and DTB Kenya for illegally withdrawing over Shs120Bn from his accounts has taken a new twist. The latest development is that Kiggundu has since petitioned the Supreme Court in Kampala, praying that the Court halts delivery of it judgement in the case as had been scheduled, because of the injustices and inconsistencies that surround the matter currently. According to an application filed by Kiggundu dated June 9th 2023, the businessman seeks to stop the Judgement that had been scheduled for delivery on June 13th, 2023, so that he (Kiggundu) and his two companies be granted leave to adduce additional evidence from the Central Bank of Kenya ,to elucidate and substantiate the illegalities committed by the DTB Kenya in respect of the disputed credit transactions between the two parties , which is the main issue of appeal. Sources close to Kiggundu reveal that the pending judgment in the Supreme Court stems from a series of legal proceedings he initiated against Diamond Trust Bank (DTB) Uganda and DTB Kenya. The case at hand originated from a syndicated banking agreement between Ham Enterprises Limited and Kiggs International Limited, and the two banks, which saw the two banks illegally deduct over Shs120Bn from Kiggundu’s accounts without his consent, claiming the same to be clearance for loans he had borrowed from them. However, tables turned for DTB in October 2020, when Commercial Court Judge Henry Peter Adonyo ruled in Kiggundu’s favour, ordering DTB Uganda to refund all the money that was illegally deducted from his accounts, because the deductions were made without Kiggundu’s consent. Sources privy to the matter reveal that Court records indicate that Kiggundu had obtained loans totaling over Shs120Bn from DTB Uganda and DTB Kenya between 2011 and 2016 to finance his real estate business. However, the dispute arose when the banks claimed that Kiggundu had failed to fulfill his loan obligations, amounting to Shillings 45 billion, as per the agreed terms and threatened to seize the mortgaged properties. But documents seen by this website indicate that Kiggundu promptly paid all the loans that his companies had acquired from the both banks as seen in the payment schedule below;  Kiggundu petitioned the commercial court, arguing that the withdrawn funds exceeded the outstanding loan amount, as he had already made full repayment. Through his lawyer Fred Muwema, Kiggundu sought to strike out the banks’ defenses and to obtain an order for the refund of illegally deducted funds. In his ruling, Justice Adonyo dismissed the defense submitted by DTB and directed them to refund the money, along with an 8% interest rate, plus paying the costs of the suit. But displeased with the decision, DTB Uganda and DTB Kenya sought relief from the Principal Judge, Dr. Flavian Zeija, who granted an order to stay the execution of Adonyo’s orders, thereby preventing Kiggundu from recovering the funds. Subsequently, the banks appealed to the Court of Appeal over the same matter. However, in a twist of events, the Court of Appeal overturned Justice  Adonyo’s ruling  and ordered a retrial before a different judge. Kiggundu, dissatisfied with the Court ruling, lodged an appeal with the Supreme Court, whose ruling scheduled for June 13th, 2023 he now seeks to halt. The reason he wants the judgement halted is because he filed an appeal raising seven grounds including the fact that the Court of Appeal Justices erred in law and fact when they avoided to adjudicate the substantial question of illegality which was the basis of the matter before them. He also contends that his appeal was heard on November 11th, 2021 and the parties were directed to file written submissions and judgement was reserved on notice. But along the way, Kiggundu argues that they realized the banks had admitted the grounds of appeal, so he filed an application seeking Judgement based on this admission. But despite numerous letters to the Supreme Court, requesting to be heard, they were never heard, only to attend a pre-hearing session on Thursday last week, during which they were informed by Lady Justice Elizabeth Musoke that judgement is scheduled for June 13th, 2023. “That consequently, the applicants have been denied access to the Supreme Court to seek adjudication of the dispute upon the aforesaid civil application which has occasioned a gross violation of the applicant’s non derogable right to be heard as protected under article 28 of the constitution,” reads Kiggundu’s application in part. The petition also contend that “…It’s grave injustice for the Supreme Court which is the Highest Court in Uganda, to permanently lock Kiggundu out of an opportunity to be heard on such a novel and complex commercial dispute well knowing that it’s decisions are final , binding and not appealable.” “That in the meantime, the applicants recently discovered through Edwin Lubanga that the Central Bank of Kenya did not grant the requisite approval under the law to the second respondent (DTB Kenya) to enter into the disputed credit transaction which is the subject of this appeal,” adds the application. According to Kiggundu, the said information or evidence was not known to him by the time of the hearing of their appeal. Kiggundu now believes that this information is very relevant, crucial and credible enough to the substantial question of cross border financial institution business of the banks which is the gist of the pending appeal, and therefore this application has been filed without delay and it should resultantly be allowed. As such, the pending judgment in the Supreme Court will ultimately determine the outcome of Kiggundu’s appeal and the resolution of the ongoing legal battle between Kiggundu and DTB Uganda and DTB Kenya. It should be note that last week Kiggundu stormed outside the Supreme Court after DTB lawyers led by Edwin Karugire asked Court to dismiss his application, on grounds that it was irrelevant and intends to waste court’s time, after Justice Musoke had insisted that judgement was to be delivered