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Kampala, Uganda:
Jomayi Property Consultants Ltd, once Uganda’s most prominent real estate company, has been sent into liquidation after being declared insolvent. The order to wind up comes after NC Bank failed to recover sh868,250,000 from Jomayi and petitioned the court to declare the company insolvent and unable to pay its debts.
In 2018, one Ssemwogerere John Baptist was the registered proprietor of land in Busiro Block 410 Plot 20 located at Ssisa, Wakiso District. The land was mortgaged to NC Bank Uganda Limited to secure loan facilities granted to Value Trading Stores Limited.
The borrower defaulted on payment of its obligations to NC Bank, and the Bank issued a notice of sale of the mortgaged property by public auction or private treaty. Jomayi Property Consultants Ltd l, owned by Joseph Magandazi Yiga, agreed with NC Bank to purchase a parcel of the land measuring 50. 2 acres at 1.506 billion shillings out of Block 410.
Six installments were agreed, worth 251 million Shillings each. Any unpaid installment would attract interest at the prevailing prime lending rate at the time 21.5 percent from the date when the amount became due to payment in full.
It is said that Jomayi failed to honor the agreed payment schedule and in 2018, the Petitioner filed a suit, in the High Court for the recovery of a sum of 1.165 billion shillings, being the unpaid balance on the purchase price of the land.The two parties entered a consent Judgment
A consent Judgment was entered by the two parties and it was agreed that Jomayi pay NC Bank the sum of 925,250,000 shillings in 10 monthly instalments. Following the Company’s default in the payment of the installments, the outstanding amount of 868,250,000 million immediately became due and payable to the Petitioner.
“From the above, therefore, this court is satisfied that the Respondent is indebted to the Petitioner and was unable to pay its debts.” He also ordered costs that the respondent (Jomayi) pay costs to the petitioner, which costs would be got from the liquidation of the company, which he declared, failed to comply with the statutory demand. He declared that Jomayi was indebted to the Bank to the tune of Shillings 868,250,000 and was unable to pay.
“A Declaration is hereby made that Jomayi Property Consultants Ltd is unable to pay its debts and is insolvent. An Order to wind up/liquidate Jomayi Property Consultants Ltd is hereby issued,” he said.
In 2016, some properties including Yiga Chambers which housed the company’s headquarters, as well as land in Nalumunye in Wakiso District were put up for sale along with a stone quarry in Mukono district to recover a loan Jomayi had gotten from another commercial bank .
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