The High Court has received the Ham-DTB fight after the Supreme Court made a ruling, stating that the dispute must undergo a thorough analysis based on factual evidence. On Tuesday, the Supreme Court determined that the $11 million (approximately sh41b) credit facility provided to Ham Enterprises Ltd was legal. Ham Enterprises subsequently transferred the funds to Kiggs International Uganda Ltd, both of which are owned by businessman Hamis Kiggundu.
Consequently, the dispute has been referred to the High Court for trial based on factual issues, excluding the matter of illegality, which has already been extensively addressed by the Supreme Court. Justice Owiny-Dollo ruled, "Since the issue of illegality has been resolved in this appeal, High Court Civil Suit No. 43 of 2020, between the involved parties, which initiated the appeal to the Court of Appeal and ultimately led to this court, it is now remitted back to the High Court for trial before a different judge, focusing solely on factual issues arising from the pleadings."
The panel of justices includes Faith Mwondha, Mike Chibita, Stephen Musota, and Percy Tuhaise. The judges ruled that the syndicated credit facility established between DTB Uganda and DTB Kenya is lawful, as neither the Financial Institutions Act of 2004 (as amended) nor the Financial Institutions (Agent Banking) Regulations are applicable to them.
Consequently, the justices dismissed Kiggundu's claims challenging the legality of the credit facility contracts between the parties. Moreover, the justices ordered Kiggundu to cover 50% of the costs incurred in the Supreme Court and Court of Appeal.
The justices noted that no law was presented to the court that prohibits the creation of the contested syndicated agency relationship formed by DTB Uganda and Kenya. Similarly, they observed that no law was brought to their attention that prohibits foreign financial institutions from providing credit facilities to financial institutions or individuals in Uganda.
Additionally, the justices highlighted that financial institutions worldwide engage in global financial transactions with, or through, institutions based in other jurisdictions, in line with the continuity of international trade and investment.
