We Can’t Shield Defaulters: Court Orders Businessman Haruna Sentongo To Pay Orient Bank Loans Worth Ugx10B

We Can’t Shield Defaulters: Court Orders Businessman Haruna Sentongo To Pay Orient Bank Loans Worth Ugx10B

Accessdome.com: an accessible web community

By Spy Uganda

Court has ordered businessman Haruna Sentongo, a brother to city tycoon Hamis Kiggundu to clear loans amounting to over Ugx10b obtained from Orient bank [now I&M bank].

This has been revealed in a judgment issued by Commercial Division, High Court judge, Richard Wejuli Wabwire, who noted that Sentongo had no serious excuse to shield him from settling loans he has been trying to avoid for the last couple of years.

For starters, Sentongo in 2015, obtained several loans from Orient Bank to finance a couple of projects including; the development and completion of Nakayiza Mall in Kampala and Segawa Market. He also wanted to finance his business of imported garments.

However, in the year 2018, Sentongo ran to court seeking orders to stop Orient bank from demanding from him their money that had accumulated to 10 billion. Sentongo was now accusing the bank of extortion, duress, undue influence, and dishonesty.

He told Court that the Bank contracted him into credit facilities with unfair and unclear terms and conditions with the purpose of unjustly enriching itself at his expense.

Sentongo further told Court that the bank perpetually breached its statutory contractual and fiduciary duties to him and made irregular and fraudulent transactions on his bank account which he said complicated his performance and exposed him to excessive loss of income risk exposure, psychological torture, mental anguish, and torment.

As a result of all the above, Sentongo asked the court to award him special damages for loss of business and rental income amounting to Ugx500 million per month starting in February 2016.

However, Sentongo’s legal tactics didn’t threaten Orient Bank which filed an application against him seeking to recover its money.

Bank told Court that since May 2015, it offered Sentongo various loans amounting to Ugx9.695 billion, which he had failed to pay and subsequently grew to Ugx10.384 billion and since then he had decided not to pay.

After hearing from both sides, Justice Richard Wejuli Wabwire on December 23 delivered a ruling ordering Sentongo to clear all the loans the bank had extended to him. Court also awarded the Bank Ugx150m in damages and interest of above 22 per cent from the date of default until payment.

Wabwire stated, “In the absence of evidence of any form of illegality that could have underpinned the transaction, the facility offer letters and mortgages constitute valid binding and enforceable contracts between the parties. The court finds that the contracts between the plaintiff and the defendant are valid and enforceable under the law. In the instant case, the allegations of misrepresentation are therefore not supported by any evidence. The plaintiff did not also adduce any evidence of undue influence or unconscionable terms.”

Accessdome.com: an accessible web community

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *