Baroda case: Hearing set for Nov 29

KAMPALA - The  case  in which  Crown Converters and Kego Investment Limited dragged Bank of Baroda to court, demanding over  sh7b in damages, has  been fixed for hearing.

Justice Anna Mugenyi of the Commercial Court fixed November 29 to hear preliminary submission of the case.

The company, which deals in stationery, accused Baroda of allegedly transferring money from its account without the consent of the directors to Midland Forex Bureau and Stanhope.

Through Okecha and Byaruhanga & Co. Advocates, the establishment alleged that between June 2005 and April 2006, its former director Aniket Patel and Bank of Baroda illegally transferred sh385m from the company's overdraft account held by Bank of Baroda to Murali Dhara Emani who was not an employee of the company.

The bank is also accused of failing to execute its duty when it relied on forged documents presented by Patel to approve a loan of sh450m.

The plaintiff argues that Patel, while managing the company's  businesses, colluded with the officials of the bank and fraudulently carried out a number of transactions which were based on forged documents.

Mike Okecha, the lawyer representing the company, argued that the bank failed in its responsibility to safeguard his client's savings.

Crown Converters accuses Baroda of having acted unprofessionally, connived and opened up several unauthorised bank accounts in the name of the company without the consent of the directors.

"The plaintiff (Crown Converters and Kego Investment) have, as a result of the defendant's actions, suffered grave inconvenience, entire business total failure and lost past, present and prospected business ventures for which they seek compensation," the suit reads.

The company is seeking a court order that the bank should pay special and general damages, interests and costs of the suit.

However, through Kateera and Kagumire Advocates in its reply to the suit, the bank has denied the claims and it dismisses the allegations as false.

It has also asked the court to dismiss the case, saying it has no merit.