City businessman, Hamis Kiggundu alias Ham has asked the Commercial Division of the High Court to throw out the defence evidence presented by Diamond Trust Bank in a Shs120 billion fraud case.
Ham, the proprietor of Ham Enterprises Limited and Kiggs International (U) recently dragged DTB -Uganda, and DTB-Kenya to Commercial Court for fraudulently siphoning over sh120 billion from his accounts without his consent.
In its defence on Monday, DTB argued that the businessman through his two companies obtained credit facilities from them and provided securities in the form of property to secure the loans.
The bank said that the facility agreements entered into between the parties are legally binding and enforceable under the law and that the deductions and charges made against the plaintiff’s accounts were in accordance with the credit facilities issued to them.
According to the bank, the businessman remains liable to settle his payment obligations and fulfill the terms of the mortgage instruments.
However, Ham’s lawyers led by Fred Muwema raised a preliminary objection in which they said they had filed an application to move court to struck out DTB’s defence arguing that it is based on illegalities.
“The defence is based on illegal transactions including the loan agreements which were made in Kenya lending in Uganda. DTB Uganda facilitated an illegality by allowing DTB Kenya to break the law in Uganda,”Muwema said.
The lawyer explained that because DTB Kenya is not licensed to carry out financial services in Uganda, it was wrong to carry out any business with Kiggundu and that it was wrong for the bank to use their counterparts, of DTB Uganda to help them enforce the loan agreement in Uganda.
The lawyer argued that the court should find it logical to dismiss the evidence by DTB Uganda for helping another bank carry out an illegality.
Muwema said that if their application is successful in an October,5, 2020 ruling by the trial judge, Henry Peter Adonyo, there will not be need for any further hearing of the case.
According to court documents, Kiggundu provided security/mortgage comprised in Plot no.923, Block 9 located at Makerere Hill Road to support the credit facilities he had got from DTB but the businessman says when he carried out an audit and reconciliation of the loan accounts, he found out that the DTB had taken shs34 billion and $23 million from his account.
The businessman wants court to declare that DTB breached the different loan agreements entered into with him between February 16, 2011, and November 16, 2019 when it fully recovered over and above what was due to it through the loan installments and interest payment deductions.
Court adjourned the case hearing to 6th October 2020.
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