Commercial Court in Kampala has ordered Diamond Trust Bank Uganda and Kenya to refund 120bn shillings which was illegally withdrawn from the account of city businessman Hamis Kigundu.
While delivering his judgement today, Justice Henry peter Adonyo noted that the said money was illegally withdrawn from Hamis Kiggundu’s account by DTB Kenya which doesn’t have a licence to carry out any financial business in Uganda.
The commercial court ordered DTB Uganda which connived with DTB Kenya to carry out business in Uganda to pay Kiggundu 120 bn shillings which it withdrew from his account.
Court has also ordered DTB Uganda and Kenya to refund all the mortgages and land titles which Kiggundu had offered as security to acquire a loan.
Speaking to press after the ruling, the overjoyed Kiggundu vowed to use the money to construct his own bank which will offer employment to Ugandans.
“This victory is not just for me. It’s for all Ugandans and as I pledged am going to use this money to develop my country by opening up a bank that will help all Ugandans” said Kiggundu
Case background
In January, Kiggundu and his companies Ham Enterprises and Kiggs International U Ltd sued Diamond Trust Bank U Ltd and Diamond Trust Bank (K), alleging breach of contract in a multibillion loan transaction.
He says between February 2011 and September 2016, his two companies sought loans from the banks and deposited properties as security but along the way as they repaid the loans, they realised the banks had not disbursed some of the agreed money yet they were unlawfully debiting his accounts without his knowledge or consent. Ham Enterprises sought recovery of Shs34b and $23m from the bank, which was irregularly deducted from him.
However, in their defense, the banks insist the businessman and his two companies took the money and acknowledged receipt on various dates.