The Court of Appeal will on Wednesday January 27 2021 begin the hearing of the appeal case pitting Diamond Trust Bank Uganda and businessman Hamis Kiggundu.
DTB filed an appeal after the Commercial Court controversially ruled in favor of the businessman who had claimed that DTB Kenya was conducting business in Uganda illegally.
DTB on its part had argued that the businessman had procured loans procedurally through its Kenyan affiliate and that he has since defaulted on payments as agreed.
While ruling on DTB’s request to put a stay to the orders of the Commercial Court, Justice Zeija noted that it’s important for the court of appeal to first determine whether the transaction was illegal since it remains an issue of contention in as far as the contract act of 2010 is concerned.
Justice Zeija also noted that the court of appeal needs to answer the question of Agency Banking and whether foreign banks trading in Uganda are required to obtain a license from Uganda to execute a contract following an issued statement from Bank of Uganda indicating that the license was not required in the transaction under dispute.
