The Commercial Court has Wednesday directed Diamond Trust Bank (DTB) to refund shs 120 billion which it illegally deducted from the accounts of Hamis Kiggundu the CEO of Ham Enterprises.
In his ruling, Justice Henry Peter Adonyo said that the Bank violated the Financial Act of 2004 and therefore directed that the 120 billion should be paid with interest of 8% for carrying out illegalities on the Ham’s accounts.
TrumpetNews will produce full ruling shortly.
Background
Ham Enterprises and Kiggs international were challenging the legality of Diamond Trust Bank Kenya doing business in Uganda.
In his 31st August petition before commercial court, businessman Hamis Kiggundu petitioned the commercial division of the high court through his lead counsel Fred Muwema challenging the court to determine whether he owed the said loan facilities (about UGX39.7b) to the bank or if not, the court declares that DTB Bank deducted money from his bank accounts in both DTB Kenya and Uganda without his consent.
This was after presiding judge Justice Henry Adonyo told court that he was still writing his ruling on the case in which the plaintiff (Hamis Kiggundu) filed a petition before the same court seeking court to determine whether DTB Kenya which offered him credit facilities to the tune of USD4m has an operating license to conduct business in Uganda.
Both counsels for the Plaintiff and respondent in Fred Muwema and Kiryowa Kiwanuka respectively agreed to the adjournment and the court session was concluded.
Hamis Kiggundu through his companies Ham enterprises and Kiggs International (U) ltd sued DTB branches in Kenya and Uganda for deducting money from his accounts something which the bank contends and said they only acted as per the loan agreement of deducting 30% from Kiggundu’s accounts to recover the credit facilities rendered to him between February 2011 and September 2016.
Hamis Kiggundu through his companies Ham enterprises and Kiggs International (U) ltd sued DTB branches in Kenya and Uganda for deducting money from his accounts something which the bank contends and said they only acted as per the loan agreement of deducting 30% from Kiggundu’s accounts to recover the credit facilities rendered to him between February 2011 and September 2016.
