Joyce Namugambe
Following the recent high court ruling that held DFCU bank liable for payment of over 34 billion shillings to a bussinessman Emphraim Ntaganda and his company Excellent Assorted, manufacturers, the company has revealed its intention to appeal to the ruling.
On August 16 /2023, the high court judge Bonifance Wamala issued the ruling which included a directive for the bank to return several land titles to Ntaganda and his company, which judgement Dfcu bank is seeking to over turn through an appeal process.
The head of marketing at Dfcu bank Jude Kansiime stated that the judgement was done against Dfcu bank and comfirmed that the bank is to appeal and has already filed the appeal notice. She added that Dfcu is to continue to pursue its rights within the law.
The case involves multiple objections raised by Mr. Ntaganda, including disputes related to deductions from his personal account and the one belonging to his company, which was previously held by Crane Bank, since Dfcu Bank took over many of the assets of Crane Bank after it was closed by the Bank of Uganda.
Mr. Ntaganda’s legal argument revolved around the claim that Crane Bank had presented him with letters for annual sign-off, which he trusted were prepared honestly and in good faith. The court found that dfcu Bank, through the defunct Crane Bank, had breached contractual and fiduciary duties by dealing with Ntaganda’s accounts “in an unlawful, unauthorized, and/or irregular manner.”
During the ruling, Dfcu was ordered to make payments totaling 9.9 billion Ugandan Shillings to Mr. Ntaganda and his company, respectively. It was also directed to release 2.75 billion Ugandan Shillings held by the bank to both Mr. Ntaganda and Excellent Assorted Manufacturers Assorted Ltd.
For the general damages caused to Ntaganda and his company, Dfcu bank was also ordered to pay 500 million shillings along with interest of 8 percent from the date of judgement until the full payment and interest on the sum of 3.1 billion Ugandan Shillings at a rate of 24 percent per annum from the date of judgment until full payment and was given 45 days from the date of the judgment to release certificates of title for various properties, as specified in the court’s orders.
