The High Court in Kampala has declared Jomayi Property Consultants Ltd, once Uganda’s most prominent real estate company as being insolvent.
The order to wind up came after NC Bank failed to recover shs868,250,000 from Jomayi and petitioned the court to declare the company insolvent and unable to pay its debts.
It all started in 2018 when one John Baptist Ssemwogerere mortgaged his land to the bank to secure loans to his business and on defaulting, the bank decided to sell the land to Jomayi Property Consultants Limited.
It was agreed that Jomayi would pay shs1.5 billion for the land measuring 50.2 acres and the money was to be paid in six installments worth shs251 million each but the company defaulted with each unpaid installment attracting an interest of 21.5 percent.
With the amount having swelled the two parties entered a consent judgement in which Jomayi was supposed to pay hs925million in 10 monthly installments but again failed to pay.
Consequently, NC Bank petitioned the court to declare Jomayi, owned by businessman, Joseph Magandaazi Yiga insolvent.
Justice Michael Elubu on April, 27 ruled that having failed to pay the bank, the only way out is declaring Jomayi insolvent.
“On the basis of the consent judgment, and the failure to pay the instalments as outlined, the petitioner issued the respondent a statutory demand requiring the respondent to pay the sum of shs 868,250,000. As earlier established, this too was not done. Section 3 (1) (a) of The Insolvency Act, 2011, stipulates that unless the contrary is proved, a debtor is presumed to be unable to pay the debtor’s debt if the debtor has failed to comply with a statutory demand. From the above therefore, this court is satisfied that the respondent is indebted to the petitioner and was unable to pay its debts,” Justice Elubu said.
The judge therefore declared that Jomayi is unable to pay its debts and is therefore insolvent and consequently issued an order to wind up or liquidate the company.
“An Order to wind up/liquidate Jomayi Property Consultants Ltd is hereby issued.The costs of the petitioner in this company cause will be met from the proceeds of the winding up/liquidation process.”
