Court sets ruling for Ham Vs DTB appeal case on Monday.
We opposed their application because high court was right. DTB broke the rules that govern the banking industry in Uganda and it’s not true they will a substantial loss
The Principal Judge of the High Court, Justice Flavian Zeija will on Monday 2nd November 2020 issue the final verdict in the case between Ham Enterprises and Diamond Trust Bank (DTB) in which the bank appealed challenging commercial courts decision in favour of Ham Enterprises.
In a recent judgement, the commercial court nullified the syndicate loan arrangements that was extended to Ham Enterprise citing irregularities in the defense of the bank and other related issues, where Justice Peter Adonyo ruled that DTB Kenya acted illegally to lend Ham Enterprise.
In their submission on Monday 26th October 2020, DBT argue that such a ruling will jeopardize the future of the banking sector in Uganda.
Led by their Lawyer Kiryowa Kiwanuka they told Justice Zeija that the high court ruling will cause substantial loss to their client.
Fred Muwema the lead Council of Ham Enterprise said in an interview that not all businesses ordered by court to pay damages incure substantial losses.
“We opposed their application because high court was right. DTB broke the rules that govern the banking industry in Uganda and it’s not true they will a substantial loss” he said after the court session.
Muwema added that after the bank lost the case in court, it’s time they return the money that was taken illegally.
“Let them return the money they took unlawfully. It’s inconvenient for the bank that list the case to stay with the money” he said.
Ham Enterprises and Kiggs International U Ltd sued Diamond Trust Bank for alleged breach of contract in a loan transaction.
After depositing property to the bank as land tittles, while funding the loan realised that the bank was not servicing sooner of the agreed loan money but started debiting his account without his notice. Ham through his lawyers sough recovery of the money and the collateral security.
According to the Executive Director of Uganda Bankers Association Wilbrod, he says that syndicate borrowing occurs when the borrower wants a loan too big for a single lender and they seek another lender and outside the scope of the borrower's risk exposer. He said that the arrangements are made in an agreement where one bank can act as a trustee of participating banks.