The commercial division of the High court on Tuesday halted the execution of the orders issued by the head of Commercial court justice Henry Peter Adonyo in a case involving city businessman Hamis Kiggundu, Diamond Trust Bank Uganda
Principal Judge, Dr Flavian Zeija issued the interim orders in the presence of the bank’s lawyer Kiryowa Kiwanuka and Usama Sebuufu.
“An interim order for stay of execution of the decree in high court civil suit number 43 of 2020 and MA number 654 of 2020 doth issue pending the determination of the main application for stay of execution” the order reads in part.
It adds: the costs of the suit will be determined in the main application, in which DTB-Uganda and DTB-Kenya are seeking to stay the execution of Adonyo’s orders pending the determination of their appeal
Last week, justice Adonyo declared the Shs 41 billion loan DTB-Kenya advanced to Kiggundu illegal since the bank isn’t licensed to operate in Uganda.
He also noted that DTB Kenya didn’t seek permission or clearance from bank of Uganda to conduct business in Uganda, which is contrary to the laid down procedures.
He therefore directed both banks to return Kiggundu’s land titles and all the monies confiscated from his accounts with an interest of eight per cent as well as paying him costs of the suit.
According to court documents, Kiggundu and his related enterprises received a credit facility totaling over Ugx 41b. which he has reportedly failed to pay. The information indicates that he owes the bank about Ugx39 billion.
Further information’s shows that between February 2011 and September 2016, Kiggundu was granted various credit facilities by the said bank. Through Ham Enterprises Limited, Kiggundu obtained a loan of $6,663,453 and later sh2.5b from the DTB (U) to finance his projects in the real estate business.
He mortgaged his properties on Makerere Hill, Kawuku, Kyadondo and Victoria Crescent Road among other plots of land as collateral for the loans. However last year, the banks served Kiggundu with documents indicating that he had failed to meet his loan obligation worth Shs 39 billion in accordance with their agreement and threatened to take over his collateral.