It is very evident that Jomayi Property Consultants Ltd was once Uganda’s most prominent real estate leader for quite along time. It is unfortunate that it is now sent into liquidation after being declared insolvent after NC Bank failed to recover Shs868,250,000 from Jomayi and petitioned the court to declare the company insolvent and unable to pay its debts.
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Genesis of the event
In 2018, John Baptist Ssemwogerere was the registered proprietor of land in Busiro Block 410 Plot 20 located at Ssisa, Wakiso District And 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.
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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.
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The two parties entered a consent Judgment 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.
Following the Consent Judgment, Jomayi Property Consultants Limited made some payments to NC Bank but did not make a complete payment on any of the installments.
As a result on January 2020, NC Bank served a statutory demand on Jomayi to pay the sum of 868,250,000 shillings within 20 days of the date of service, or insolvency proceedings would be commenced against it.
“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.