Simbamanyo loses Shs40b case to Equity Bank 

                            
KAMPALA- Simbamanyo Estates Limited have lost a case in which its proprietors were challenging the sale of its multimillion property as a bank moved to recover an outstanding loans worth $10.8m (about Shs40 billion).

Ms Lillian Bucyana, the Commercial Division of the High Court registrar, on Wednesday issued the order that the case fails.
“The suit abates for failure to take out summons for directions in time,” reads the February 17 order.

The order halts a case which the company had filed against Equity Bank (U) Limited, Meera Investments Limited, Luwaluwa Investments Limited and the commissioner for Land Registration.

The court order followed a notice in which Meera Investments lawyers of Walusimbi and Company Advocates reported that the case be dismissed because the complainants did not take out summons for directions in the stipulated time.

Through its lawyers, Simbamanyo Estates Limited and its proprietor Architect Peter Kamya had sued the four parties alleging fraudulent and illegal sale of their prime property.

In October last year, Equity Bank sold the two property; Simbamanyo building on Lumumba Avenue to Meera Investments Limited, while Luwaluwa Investments bought Afrique Suites on Mutungo Hill in Nakawa Division.

The property was guaranteed to Equity Bank Uganda as security for Simbamanyo Estates Limited to get a $10.8m loan in November 2017.

On August 7 and August 11 last year, the bank advertised the sale of the two properties by way of public auction. The advert for sale of the mortgaged properties sought to enforce the disputed credit facility advanced on November 30, 2017.

Simbamanyo Estates lost a case against Equity Bank Uganda and its counterpart in Kenya in which it had challenged the legality of the unpaid loan.

Equity Bank Limited argued that the proprietors of Simbamanyo Estates Limited defaulted on their loan obligations when they failed to pay any money as required by the contract signed.

The High Court order followed a decision in which the Directorate of Public Prosecutions (DPP) rejected criminal proceedings against the property buyers and bank officials.

Mr Kamya reported cases of criminal trespass and fraudulent disposition of mortgaged property at Jinja Road Police.

But in a January 12 letter, DPP principal assistant Betty Khisa asked Mr Kamya to pursue civil processes.

“…We shall not be calling for the file,” wrote Ms Khisa in response to Mr Kamya’s complaint through his lawyers.
Mr Kamya’s lawyers had complained against the decision by the resident state attorney to close the file reasoning that it was in its infancy.