By Angel Lubowa
KAMPALA
The over six years legal battle between city business man Hajj Haruna Ssentongo and I & M bank formerly Orient Bank is finally coming to an end with the Bank on top and Ssentongo being ordered to pay billions.
This follows the Court of Appeal in Kampala’s ordere to Hajj Sentongo to pay shs10.3 billion with interest after he lost an appeal he had filed against I&M Bank .
For starters, Hajj
Ssentongo in 2019 run to the High Court seeking repayment of Shs 10.4 billion, accrued interest, general damages, and costs of the suit when he accused the financial institution of breaching the terms of the contract after taking a loan from them.
Incidentally he lost this case in December, 2022 which made the Commercial Division of the High Court to order him to pay shs10.4 billion to his loaners, Orient Bank which is now operating as I&M Bank . When he didn’t not find solace in the order, he climbed to the Court of Appeal which has now also dropped a bomb shell.
As things now turn out,
the panel of three justices , Cheborion Barishaki, Christopher Gashirabake and Monica Mugenyi ruled in favor of the lower court’s decision since it awarded a reasonable rate of interest.
“It is my considered view that, in determining a just and reasonable rate of interest, courts should take into account the ever-rising inflation and drastic depreciation of the currency. A claimant should be entitled to such rate of interest that takes into account the prevailing economic value of money, but at the same time one which would insulate him or her against any further economic vagaries and the inflation and depreciation of the currency in the event that the money awarded is not promptly paid when it falls due,” Justice Barishaki said in his lead judgment.
And he added,
“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.”
In light of the above, the Court of Appeal ruled that Hajj Ssentongo’s appeal fails and ordered him to pay shs10.4 billion to I&M Bank that he is owed.
The Court of Appeal also ordered the petitioner to pay a rate of 12.5% per annum on the shs10.4 billion since January, 22, 2019, the date of filing of the suit until payment in full.
Another award of
shs150million in general damages and a 6% per annum interest on this amount from the date of judgement until full payment was also given to the bank.
The judgement now means the applicant will have to pay at any cost and may have to deplete part of his fortune where he finds himself with not the required money.
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