Court

ULS members clash over Kiggundu, DTB Supreme Court case

These lawyers who were led by Steven Kalali, Zahid Sempala, Bonny Akol and Sali Babu accompanied with scores of other lawyers note that the Supreme Court should have heard Kiggundu no matter how his application is whether it has merit , bad in law, vexatious, vague or meritless and he gets to know it.

Businessman Hamis Kiggundu (L) consults one of his lawyer Fred Muwema (R). FILE PHOTO

KAMPALA, UGANDA: Members of the Uganda Law Society (ULS) have clashed over the pending appeal in the Supreme Court where businessman Hamis Kiggundu is seeking to recover 120 billion shillings from Diamond Trust Bank Uganda and Diamond Trust Bank Kenya.

The pending appeal in the Supreme Court stems from a series of legal proceedings initiated by businessman Kiggundu against Diamond Trust Bank (DTB) Uganda and DTB Kenya.

The case originated from a syndicated banking agreement between Ham Enterprises Ltd and Kiggs International Limited, and the two banks.

In October 2020, Commercial Court Judge Henry Peter Adonyo ruled in favor of Kiggundu, ordering DTB Uganda to refund all funds deducted from his accounts. It was alleged that these deductions were made without Kiggundu’s consent.

Records before Court show that Kiggundu had obtained loans totaling over Shillings 120 billion from DTB Uganda and DTB Kenya between 2011 and 2016 to finance his real estate business.

The dispute arose when the banks claimed that Kiggundu had failed to fulfill his loan obligations, amounting to Shillings 39 billion, as per the agreed terms. They threatened to seize the mortgaged properties. Kiggundu petitioned the commercial court, arguing that the withdrawn funds exceeded the outstanding loan amount, as he had already made full repayment.

Represented by Fred Muwema, the businessman sought to strike out the banks’ defenses and obtain an order for the refund of unlawfully obtained funds. Justice Adonyo dismissed the banks’ defense and directed them to refund the money, along with an 8% interest rate and the costs of the suit.

Displeased with the decision, the banks sought relief from the Principal Judge, Dr. Flavian Zeija, who granted an order to stay the execution of Adonyo’s orders. This prevented Kiggundu from recovering the funds. Subsequently, the banks appealed to the Court of Appeal.

In a subsequent ruling, the Court of Appeal overturned Judge Adonyo’s order and ordered a retrial before a different judge.

Dissatisfied with this decision, Kiggundu lodged an appeal with the Supreme Court which is pending judgement tomorrow June 13th, 2023.

But last week when the parties were called for a pre-hearing conference, Kiggundu stormed out of the Supreme Court after DTB lawyers led by Edwin Karugire had asked Court to dismiss his application, seeking judgement on admission of illegalities they committed..

Karugire wanted the application dismissed on grounds that it was irrelevant and intended to waste court’s time, as Justice Musoke insisted that judgement was to be delivered tomorrow.

Following the after math of the chaos, on June 8th 2023, the Uganda Law Society through it’s President Bernard Oundo released a statement indicating that the applicants (Kiggundu) and his supporters exhibited unruly behavior including but not limited to having discourteous exchanges with the court, heckling and making unfounded allegations thereby interrupting the orderly business of the court .

The Society condemned such actions and advised people feeling aggrieved by the court decisions to always use appropriate legal means for redress.

Now today, while addressing journalists in Kampala, a section of members of Uganda Law Society under another umbrella body for lawyers called Partners for Equal Justice Uganda-PEJU said the statement by their President Oundo is biased and does not portray the principles of natural justice as it should be in the Constitution.

These lawyers who were led by Steven Kalali, Zahid Sempala, Bonny Akol and Sali Babu accompanied with scores of other lawyers note that the Supreme Court should have heard Kiggundu no matter how his application is whether it has merit , bad in law, vexatious, vague or meritless and he gets to know it.

They say by failing to hear him, the Supreme Court which is the last appeal court of the land set a bad precedence to the subordinate courts by going ahead to fix judgement for tomorrow, without hearing that application or deciding that the judgement is to encompass the issues the application is raising.

The lawyers argue that the Supreme Court conducted itself in a legally reprehensible and unjust manner in the case by declining to hear the case well knowing that it has been in the system since 2021 in addition to the fact that the court itself had called the parties for the pre-session hearing of the same.

“We note that the application was seeking for judgement on admission to be entered and the law is seemingly clear. The same application was not accorded a hearing date expeditiously for reasons best known to the court but when slated on the June 8th 2023 for pretrial conference,  the applicant wanted to be heard, they and counsel were bull dosed under guise that the judgement was ready for delivery on a particular date,” reads the statement.

According to the lawyers, this they say  has no legal basis in known procedure as the right to be heard is non derogable under Article 28 and 44 of the Constitution.

“We further condemn the biased and partial statement issued by the Uganda Law Society president which in our view clearly offends the objectives of the society enshrined in the Uganda Law Society Act  Section 3 (d)that mandates the society to assist the public in all matters as regards the law,” reads the statement.”

According to the lawyers, they expected the Society president to condemn the acts of delayed justice not according the litigants right to be heard in the application other than throwing tantrums at them or the manner they expressed their dissatisfaction towards not being heard.

“Whereas we may not agree with the manner in which the litigant expressed his dissatisfaction with the decision of court, we take note that, that was an expression of conduct of a frustrated litigant who felt that his right to be heard had deliberately been infringed upon,and we ought to be alive to the fact that freedom of speech and expression is enshrined in Article 29 of the constitution,” said one of the lawyers Kalali.

According to this group, it is their Prayer that the Supreme Court  upholds the

constitutional provisions as well as the provisions under the United Nations Report on Independence and execute the mandates of  court  which is to determine all matters before court based on facts and impartiality .

Earlier, Kiggundu’s lawyers of Muwema and Company Advocates wrote to the Supreme Court Registrar saying that they on June 9th 2023 at 11:59pm filed an application seeking to stop the Supreme Court from delivering it’s judgement which is planned for tomorrow. And therefore they want it to be validated or fixed for hearing expeditiously as the justice of the case required because it’s very urgent in nature and it concerns important matters in the Prudential regulation of the banking industry.

Hours ago, the Supreme Court released a hearing notice confirming and maintaining it’s stand that it’s judgement in the main appeal is for tomorrow.

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