Simbamanyo given 30 days to pay Shs11b to save property

BY EPHRAIM KASOZI
Court has given proprietors of Simbamanyo Estate up to 30 days to deposit $3.1m (about Shs11b) to Equity Bank Uganda to avert the impending auction of the company’s properties over a loan.
The court said the payment of Shs11b is a condition to halt the auctioning of the property, including Simbamanyo building on Lumumba Avenue, which houses the Ministry of Gender, Labour and Social Development and three plots of land housing Afrique Suite Hotel at Mutungo in Luzira, Nakawa Division.
Justice Boniface Wamala of the Commercial Division of the High Court gave Simbamanyo Estate the 30-day deadline following pleading by the company lawyer, Mr Fred Muwema, to allow them file their arguments challenging the ruling of the court registrar.
On Wednesday last week, the court registrar, Ms Susan Kanyange, ordered Simbamanyo Estate to deposit within four days the said money, which is 30 per cent of the outstanding loan of $10.5m (about Shs40b) with the bank in order to halt the property sale by public auction.
Simbamanyo building and three plots of land in Mutungo, Nakawa Division, were due for sale on September 11 for recovery of the loan from Equity Bank. The two properties were guaranteed to Equity Bank Uganda as security to get the loan in November 2017.
Justice Wamala yesterday asked lawyers for Simbamanyo Estate and Equity Bank to file written submissions on the application against the registrar’s orders for court to make a ruling on October 12.
Simbamanyo Estate Limited through their lawyers of Muwema and Advocates had sought to halt the intended sale.
On August 7 and August 11, the bank advertised the sale of the two properties by public auction.
Mr Muwema asked court to stop the public auction, reasoning that his clients have a pending case in which they are challenging the legality of the outstanding loan.
However, the bank lawyers, Mr Sim Katende and Mr Fred Mpanga, asked the court to apply the rule, which requires any claimant to deposit 30 per cent of the value of the loan or that of the mortgaged property.