By Ahmed Senoga
Peter Kamya the proprietor of the Simbamanyo Estates Limited has challenged the action of the High Court Commercial Division’s decision to Sale of his multimillion property.
In their Appeal the Simbamanyo Estates contend that the abatement order of February 17 issued by the registrar Lillian Bucyana was premature and irregular hence it should be set aside.
Simbamanyo noted that the order had closed a case which Simbamanyo Estates Limited had filed against Equity Bank (U) Limited, Meera Investments Limited, Luwaluwa Investments Limited and the Commissioner for land Registration.
Abatement process is a pre-trial procedure which is only intended to expedite hearing of cases.
Simbamanyo through their lawyers of Muwema and Company Advocates and Mr Kamya have asked court to reinstate the case so that it is heard on its merit because it raises issues on fraudulent sale of disputed property.
“If she had summoned the plaintiffs, she would have discovered that the plaintiffs’ actions were right because Meera Investments and the commissioner for lands had not yet served the plaintiffs’ counsel with their defenses,” reads Kamya’s affidavits.
Last year Equity Bank sold Simbamanyo properties comprising of a building housing the gender ministry on Lumumba Avenue and Afrique Suites at Mutungo Hill as it moved to recover outstanding loans worth $10.8 million (about 40 billion).
Last week, the registrar held: “The suit abates for failure to take out summons for directions in time. “
Last year Simbamanyo Estates Limited and its proprietor Architect Peter Kamya had sued the four parties alleging fraudulent and illegal sale of their prime property.
According to their appeal application to be heard by a judge, the registrar made a decision on a case file which was before a judge pending hearing in respect of the injunction order but court instead ordered for a status quo to be maintained thus barred the buyers from selling or transferring the same.
It should be recalled that 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 $10.8 million loan in November 2017. On August 7 and 11 last 2020, 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. The sale followed dismissal of several court cases in which Simbamanyo Estates Limited had sought to block the sale claiming that the loans advanced to him were illegal.
They contend that the court registrar failed in her duty when she issued an abatement order without giving the plaintiffs a chance to explain why the summons to issue for guidelines were not issued as required by law. He contends that it was irregular to abate the case in proceedings without hearing from the plaintiffs.
The court order followed a notice in which Meera Investments lawyers of Walusimbi and Company Advocates reported that the case abates because the complainants did not take out summons for directions in the stipulated time. 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 contracted signed.
