April 23, 2024.
KAMPALA, Uganda | The Court of Appeal sitting in Kampala has issued an order blocking Diamond Trust Bank from selling or interfering with property belonging to renown city businessman Haruna Sentongo located in Mengo, Kampala.
The ruling, delivered on April 19th, 2024, by Court of Appeal judge Hon Justice Oscar Kihiika, stemmed from an application filed by Haruna Sentongo and his company, Haruna Enterprises (U) Ltd. The application sought temporary protection from the potential disposal of their properties following a dismissal of their suit in the High Court.
Haruna Sentongo had filed a suit in the High Court of Uganda seeking the cancellation of a Security Realization Agreement with Diamond Trust Bank, alleging fraudulent execution. However, the High Court dismissed the suit when Haruna and his company failed to submit required documents within the specified time-frame. Subsequently, they filed an appeal before the Court of Appeal, now awaiting determination.
While granting the temporary injunction, Justice Oscar Kihiika observed that upon initial examination, Sentongo and his company proved that they had an appeal with reasonable grounds pending determination (a prima facie case) in the Court of Appeal. He further noted that they would suffer irreparable damage if the injunction was not granted and that the balance of convenience favored them, who were in possession of the property and stood to be prejudiced if it were sold
Addressing objections raised by the bank, Justice Kihiika clarified that there is no requirement for an application for a temporary injunction to first be filed in the High Court before seeking relief from the Court of Appeal. He affirmed that the application was properly before the Court of Appeal, dismissing the bank’s objections.
The temporary injunction prohibits Diamond Trust Bank from selling, transferring, alienating, or interfering in any way with Haruna Sentong’s interest and possession of the properties in Mengo, Kampala, until the determination of Civil Appeal No. 1553 of 2023.
This legal development marks a significant step in protecting Haruna Sentong’s property rights and underscores the importance of due process in legal proceedings. As the case unfolds, stakeholders will closely monitor developments, ensuring justice is served and property rights are upheld.
The court’s decision to grant the temporary injunction highlights the importance of safeguarding the rights and interests of litigants involved in legal disputes. It provides Sentongo and his company with temporary protection against potential harm pending the final determination of their appeal.
