City businessman Haruna Sentongo, brother to prominent tycoon Hamis Kiggundu, has suffered a legal setback after losing a shs10.4 billion case against I&M Bank Uganda Limited.
The court directed that he pays shs10.4 billion that he is owed and shs150 million in general damages plus interest on both sums.
Being owed shs10.4 billion that had accrued after a loan he took from Orient Bank , now I&M Bank, the business challenged the amount in the Commercial Division of the High Court, accusing the bank of breaching the terms of the loan .
In December, 2022, the court ordered the businessman to pay the shs10.4 billion and shs150 million in damages, and an annual interest rate of 22% from the first default date until full payment.
Dissatisfied with the decision of the lower court, Ssentongo ran to the Court of Appeal.
In its decision, the Court of Appeal has ruled that the decision by the High Court was rightful.
“Based on the aforementioned principles, it is my finding that the learned trial judge cannot be faulted for awarding interest on the outstanding sum of sum shs10.4 billion. The award was in exercise of his discretion under Section 26 of the Civil Procedure Act,” the court ruled.
“I have carefully reviewed the evidence on record and I am unable to fault the learned Judge on the order awarding costs in the consolidated suits to the respondent. The learned Judge found that the Appellant had not proved his claims against the respondent and therefore dismissed it .The appellant, Mr. Haruna Sentongo, is indebted to the respondent, Orient Bank Limited now I&M Bank (Uganda) Limited in the sum of shs 10,384,396,959.”
Ssentongo was also ordered to pay a 12.5% per annum as interest on the shs10.4 billion since January, 22, 2019, the date of filing of the suit until payment in full.
The court also ordered the businessman to pay shs150million in general damages and a 6% per annum interest on this amount from the date of judgement until full payment.
