Simbamanyo estates withdraw case in loan dispute
Simbamanyo House in Uganda's capital, Kampala. PHOTO /COURTESY
What you need to know:
- Simbamanyo Estates had petitioned the Court of Appeal seeking orders to maintain the status quo stopping the sale of their property by Equity Bank which is seeking to recover loans worth $10.8 million (Shs40 billion).
The proprietors of Simbamanyo Estates Limited have withdrawn an application in which they sought to stop the takeover of its property on Lumumba Avenue.
Simbamanyo Estates had petitioned the Court of Appeal seeking orders to maintain the status quo stopping the sale of their property by Equity Bank which is seeking to recover loans worth $10.8 million (Shs40 billion).
They were seeking to halt a High Court order that required them to pay 30 per cent of the outstanding loan totaling Shs12 billion.
When the matter came up for hearing before Justice Christopher Madrama, Simbamanyo Estates lawyer Robert Friday Kagoro, asked the court to allow withdrawal of the case reasoning that it has been overtaken by events.
But Equity Bank lawyers; Sim Katende and Frederick Mpanga asked the court to order Simbamanyo Estates to pay the legal costs incurred by the bank.
The case came a week after the bank announced that it had sold the Simbamanyo building which is housing among others the Ministry of Gender, to Meera Investments Limited owned by businessman Sudhir Ruparelia.
“All tenants were put on notice of the said auction via an advert in the Daily Monitor newspaper dated September 8,” reads the notice signed by the bank’s Managing Director, Sam Kirubi in a notice dated October 8 this year.
The bank added: “We trust you will accord the new owners all courtesy and all future rental payments and other tenant inquiries and obligations will be handled by Meera Investments Limited or their agents.”
Through their lawyers of Muwema and Company Advocates, Simbamanyo Estates insists that they appealed against the payment of 30 per cent which was being claimed by the bank, and that the appeal is yet to be fixed for hearing.
Court documents indicate that upon issuance of the High Court order on September 7, the bank advertised their property, and were meant to and finally sold on October 8.
“There is an imminent threat and danger that the applicant’s said properties will be sold off and thereby prejudice the pending appeal unless the respondents are restrained,” reads part of the court document.
How it started
The properties were guaranteed to Equity Bank Uganda as security to get the loan in November 2017.
Simbamanyo Estate Limited through their lawyers of Muwema and Advocates had sought to halt the intended sale.
On August 7 and 11 this year, the bank advertised the sale of the two properties by way of public auction. The advert for sale of the mortgaged properties seeks to enforce the disputed credit facility advanced on November 30, 2017.
The Estate sued Equity Bank Uganda and its counterpart in Kenya challenging the legality of the outstanding loan. The case is pending hearing and determination before the Commercial Division of the High Court.
