Jomayi, bank in Shs950 million land row
A file photo of Mr Joseph Magandazi Yiga, the proprietorof Jomayi Property Consultants Ltd
KAMPALA- A real estate firm, Jomayi Property Consultants Ltd, and NC Bank are embroiled in a row over payment of Shs950m in connection with a land transaction.
In the case filed before the High Court in Kampala on Monday, Jomayi Property Consultants Ltd is seeking for court’s permission to challenge an insolvency proceedings commenced by the bank.
On March 5, Jomayi Property Consultants Ltd was summoned to answer a petition filled by NC Bank. Hearing of the insolvency petition is slated for June 16, before the High Court.
It is alleged that a demand notice was issued against Jomayi Property Consultants Limited requiring payment of all the monies due in regard to payment of land.
However, through its lawyers, Jomayi Property Consultants Limited is seeking to quash the said statutory demand notice arguing that they are able and willing to settle all the outstanding money.
“That any delay, if at all, in the payment of the requisite instalments, was a fault of the respondent when it prematurely instituted execution proceedings contrary to agreed terms of the consent judgment,” reads the complaint.
Background
In July 2019, Jomayi Property Consultants Limited agreed to pay Shs952 million to NC Bank Uganda Limited in form of instalments in settlement of a mortgage on 46.3 acre land at Sisa, Wakiso District.
According to the consent judgment, the bank acknowledged receipt of the payment of Shs435,850,000 for the land leaving a balance of Shs952,250,000 to ensure full purchase price for the disputed land.
Court documents indicate that the bank later commenced an insolvency proceedings against Jomayi Property Consultants Limited.
But through its lawyers, Jomayi Property Consultants Ltd is now seeking court permission to be allowed to file an application for orders to quash the statutory notice for insolvency.
“The applicant has good grounds which could warrant the setting aside of the statutory demand notice. The applicant is able and willing to settle its obligations under the consent judgment signed in July 2019, thus this statutory demand is unjustified,” reads the complaint.
