Africa-Press – Uganda. The High Court in Kampala has ordered KCB Bank (U) and Kenya Commercial Bank to avail Tirupati Company a number of documents to facilitate its case against the duo financial institutions.
Tirupati had in its application argued that they requested for the said documents that are relevant to resolution of the main case that is now pending disposal in vain.
“This application partially succeeds to the extent that the respondents should avail the applicant the following documents; the loan transaction and loan account origination, negotiation, approval, processing, key facts documents, management, and closure in respect of the following accounts…,” ruled Justice Musa Ssekaana.
Justice Ssekaana, however, was reluctant to grant the request for disclosure of information pertaining to alleged money-laundering, saying it would be prejudicial to third parties whose private life may be exposed and yet they are not party to the suit.
According to court documents, Tirupati in the main suit alleges several causes of action against the duo banks, which include; negligence, conversion, breach of fiduciary duty, breach of statutory duty, money laundering, and fraud among others.
Tirupati’s suit is premised on the loan facilities that it obtained from the banks, the manner in which they were managed and the policies relating to them, which are the issue in the main suit.
In the main case that is still pending determination, Tirupati contends that while KCB had agreed to disburse a total sum of $7m (about Sh26.7b), the total sum disbursed to the company was $6.99m (about Shs26b), contrary to the loan agreement.
Further in its main law suit, Tirupati argues that in 2018, they noticed and complained to the banks about several suspicious transactions on its current and loan accounts and they did not provide a coherent explanation for the same suspicious transactions.
The core contention is that KCB banks allegedly created and opened and operated various accounts in the names of the Tirupati, without her knowledge or consent.
BACKGROUND
In a lawsuit, Tirupati contends that on July 17, 2012, KCB Uganda and Kenya agreed to advance a syndicated loan of $7m (about Shs25b). Tirupati argued that it received $6.9m instead of the $7m loan requested. Tirupati argues that in 2018 it complained to the banks about several suspicious transactions on its current and loan accounts.
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