Court halts eviction order on Fang Fang
Posted Wednesday, October 30 2013 at 02:00
Kampala- A court in Kampala yesterday halted an order directing the proprietor of Fang Fang Hotel to immediately vacate the premises in connection with a 14-year old case over a loan from Crane Bank in which owners of the defunct Holiday Hotel lost the property.
Acting Head of the Appeal Court, Justice Augustine Nshimye, stayed the implementation of the court order until the application for interim stay and subsequent appeal is heard and determined before the Supreme Court.
The directive to the bailiffs followed an appeal by the Ms Fang Min, the proprietor of Fang Fang Hotel, through her lawyers, who requested for the intervention of the court to have their application fixed for hearing.
“We, therefore, seek your Lordship’s urgent intervention in the interest of justice to stay the execution of the warrant to give vacant possession until the application for an interim order is disposed of by the court,” reads the letter by lawyers.
Crane Bank and Fang Fang Hotel indicated that they have filed a notice of appeal before the Supreme Court to challenge the October 24 orders in which they were both directed to pay Belex Tours and Travel Limited Shs194 million with 17 per cent interest per year from 1999 until October 2013 and 8 per cent interest from date of judgment. Belex Tours and Travel Limited is the mother company of Holiday Hotel.
Last week, three justices; Faith Mwondah, Kenneth Kakuru and Geoffrey Kiryabwire overturned a High Court decision and ordered Crane Bank to pay general damages to Belex Tours and Travel for loss of business and property from May 1999 to date worth $704,829 which was outstanding loan by then, together with interest at commercial lending rate.
The Appeal Court justices had observed that the execution of the mortgage by Crane Bank and Fang Min did not comply with the provisions of the law and hence invalid. According to the justices, Ms Fang Min obtained the property fraudulently and illegally because she paid $145,000 for a $745,000 property.
Mr Myers Mucunguzi, the managing director of Belex Tours and Travel Limited, said on Monday that lawyers were extracting the orders for implementation.