Kiggundu's lawyers led by Fred Muwema told journalists shortly after the court ruling that they will proceed to the Supreme Court, East African Court of Justice and Kenyan Courts to challenge the issues arising from their case.
Kiggundu's supporters at the Court of Appeal
Court wrongly awarded businessman, Hamis Kiggundu Shillings 120 billion in his
case against Diamond Trust Bank-DTB, according to the Court of Appeal Justices.
Delivering their ruling this afternoon, a panel of three Justices of the Court
of Appeal comprising the Deputy Chief Justice, Richard Buteera and Justices Kenneth
Kakuru and Christopher Izama Madrama faulted Commercial Court Judge, Henry
Peter Adonyo for failing to hear and determine the case based on its merit and
instead relied on a mere point of law arising from the proceedings.
that this principle only applies in the event that the defendant fails to file
his defence to the suite. They, however, noted that this wasn’t the case in the
matter before court because DTB filed a written defence that the Judge never
addressed his mind before awarding Kiggundu Shillings 120 billion. The
justices have ordered that the matter returns to another Commercial Court Judge
for retrial and directed Kiggundu to pay costs of the appeal to the two banks represented
by Kiryowa Kiwanuka.
arise from an appeal filed by DTB Kenya and DTB Uganda challenging commercial
court compensation order on the grounds that the Judge didn’t address his mind
to the evidence on record relating to breach of contract, fraud and statutory issues.
Kiggundu's lawyers led by Fred Muwema told journalists shortly after the court
ruling that they will proceed to the Supreme Court, East African Court of
Justice and Kenyan Courts to challenge the issues arising from their case.
Details of the Appeal
from the October 2020 decision by Commercial Court Judge Henry Peter Adonyo ordering
DTB Uganda to refund all monies deducted from Kiggundu's accounts in a case
involving a syndicated banking agreement between Uganda and DTB Kenya.
The banks reportedly deducted the money from
Ham Enterprises Ltd and Kiggs International Ltd, which belong to Kiggundu
without his consent. According to
the evidence before the court, between 2011 and 2016, Kiggundu secured loans worth
more than Shillings 120 billion from DTB Uganda and Kenya through Ham
Enterprises Ltd and Kiggs International Ltd to finance his real estate business.
However, the banks served Kiggundu with documents indicating that he had failed
to service the loans to the tune of Shillings 39 billion in line with their
agreement and threatened to take over his collateral.
This prompted Kiggundu to
petition the commercial court, saying that the money withdrawn from his dollar
and Shillings accounts was in excess despite paying back his loan in full.
lawyer Fred Muwema, Kiggundu asked the court to strike out the defences of both
banks and order them to refund the money illegally withdrawn from his account.
Justice Adonyo dismissed the bank's defence and ordered them to refund the
monies withdrawn from the businessman’s account with the interest of 8% and costs of
Dissatisfied with the decision, the banks petitioned Principal Judge
Dr. Flavian Zeija where they secured an order for stay of execution of the
commercial court orders meaning that Kiggundu cannot commence the recovery of
the said monies before they petitioned the appellant Court.