The High Court in Kampala has today, Tuesday, October 13, 2020 temporarily blocked the execution of the recent ruling against Diamond Trust Bank by the court’s commercial division.
Justice Henry Adonyo of the commercial court, had last week ruled that DTB Kenya (DTBK) acted illegally in lending money to Ham Enterprises, through Diamond Trust Bank Uganda.
The syndicated loan facility totaled UGX 39.7b which Ham Enterprises, owned by businessman Hamis Kiggundu acquired to facilitate his businesses, though it is alleged that he defaulted.
In his ruling, Justice Adonyo had stated that DTBK couldn’t lend money to Kiggundu because it had not been licensed to conduct business in Uganda.
However, Diamond Trust Bank with support from other commercial banks under the Uganda Bankers Association rushed to the High Court to block the execution of this ruling. The association says the ruling has enormous implications on Uganda’s economy and puts at risk trillions lent to government, international companies doing massive infrastructure projects by foreign lenders, through a syndicated system that the court ruled illegal.
In the ruling today, the Deputy Registrar issued an interim order for stay of execution of the decree by the Commercial Court, pending determination of the main application for stay of execution.
“An interim order for stay of execution of the decree in High Court suit no.43/2020 and MA No 654 of 2020 doth issue pending the determination of the main application for stay of execution,” the order issued by the registrar on October 13 reads in part.
This injunction was heard in the presence of DTB lawyers; Counsel Kiryowa Kiwanuka and Sebuufu Usaama, whereas Mr. Hams lawyers were absent though served.
Africa Tembelea understands that the main application will be heard tomorrow Wednesday before the Hon Justice Dr. Flavian Zeija, The Principal Judge.
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