FLOORED! Tirupati hammers KCB bank in loan facility war
Tirupati Development (U) Ltd is having the last laugh after hammering KCB Bank (U) Ltd in a battle for discovery and production of all the documents in possession of the respondents-KCB Bank (U) Ltd.
The suit, Misc. Application No. 0707 of 2022 (Arising from Civil Suit No. 15 of 2022) that was lodged by Tirupati Development (U) Ltd, was premised on a loan facility that it obtained from KCB Bank (U) Ltd wherein the plaintiff challenged the breach of fiduciary duty by the bank.
The applicant in the main suit accuses the respondents of several allegations including negligence, conversion, breach of fiduciary duty, breach of statutory duty, money laundering and fraud.
In some of the affidavits, the applicant is bitter about the manner in which the loan facilities were managed and the policies relating to the said loan facilities.
“Specifically in issue is the respondent’s action of creating or opening and operating various accounts in the names of the applicant, without our knowledge or consent and in contravention of the laws in place in Uganda,” one of the affidavits read.
“That the respondents allege that they have or had authority to open and operate the said accounts in the names of the applicant, which position is contested since no such authorizations documents or contracts exist with the applicant in respect of the said accounts,” it adds.
The applicant was seeking documents related to; the loan transaction and loan account origination, negotiation, approval, processing, key facts documents, management, and closure; the respondent’s policy on fraud detection, reporting, investigation, management, resolution, and closure.
The others are investment origination and management of current and loan accounts; policies on information and computer technology, system authenticity, cyber security, and digital forensics, in hard copies and soft copies for both KCB Uganda Limited and KCB Kenya Limited; Money laundering policies and suspicious transaction reports on both current and loan accounts since the Anti-Money Laundering Act 2013 came into force.
Although the defendants raised objections to the disclosure of these documents arguing that the submission of the said documents will compromise the respondents’ internal processes in relation to their competitors and may expose the respondent and their customers to insurmountable risk thereby causing irreparable harm to the respondents, Justice Musa Ssekaana of the Civil Division while delivering the ruling on the matter on Friday, trashed the objection.
Justice Ssekaana insisted and ordered KCB bank to avail the applicant all the documents in possession of the respondents in support of their defenses.
Some of the documents include the loan transaction and loan account origination, negotiation, approval, processing, key facts documents, management, and closure in respect of loan accounts with the 2nd respondent and the 1st respondent.
KCB bank has also been ordered to provide the applicant with documents relating to the US dollar current in the applicant’s name opened by the 1st respondent.
This is on top of providing all documents of the USD dollar account in the applicant’s name with the 1st respondent and the Uganda shillings account in the applicant’s name with the 1st respondent.
KCB will also meet the costs of the cause. The applicant was represented by Counsel Robert Kirunda while the respondents were represented by Counsel Dennis Wamala & Counsel Terrence Kavuma.
Ruling Tirupati Development (U) Ltd vs KCB
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