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|In a 26 page judgment, Commercial Court’s Justice David Wangutsi has ruled against Diamond Trust Bank [DTB] saying the bank was fraudulent ,breached its fiduciary duty and fatally breached the provisions of the Mortgage Act.|
In a 2018 case filed by Lt. Gen Charles Angina where he contested the connivance between DTB and a Mbale-based businessman Joseph Ariong Odea (also owner of Wash & Wills) and Bukedea MP Patrick Isiagi Opolot (aimed at depriving him of his Muyenga residential property), Justice Wangutsi finds that DTB breached fiduciary duty and engaged in open fraud.
Accordingly the Judge said in his ruling that courts have a duty to protect bank customers against being defrauded. Justice Wangutsi noted that DTB closely working with the other two defendants, fatally breached provisions of both the Mortgage Act and the Financial Institutions Act (FIA) which is the principal law BoU relies on to regulate financial institutions and banks like DTB.
Justice Wangutsi ruled that t much as Isiagi might have been an innocent purchaser of value without notice of the fraudulent conduct of DTB and Ariong the attempt to surrender the land back to Angina (the plaintiff) without him providing any consideration came off as unlawful. The judge directed that the land which DTB received from Sebalu Lule Advocates, who were acting on behalf of Grofin Uganda Ltd, must be immediately surrendered back to Angina as the lawful owner.
The Commissioner Land Registration was also directed to cancel all the preceding transfers involving Ariong and Isiagi for being fraudulent, sham, null and void. Angina, being the successful litigant, was awarded damages totaling to Shs400m (with 10% interest) to atone all the inconveniences he has endured for the period DTB and Ariong’s fraud was being perpetrated.
The Judge also nullified all the mortgage-related transactions the Bank entered into or executed regarding the Muyenga land because the bank committed clear fraud, breach of fiduciary duty and illegalities all to the extreme detriment of Gen. Charles Angina .