Commercial Court has thrown out a case in which Simbamanyo Estates Limited had sought to halt the auctioning of its prime properties in Kampala.
The sale was meant for Equity Bank Limited to recover outstanding loans worth $10.8 million (about Shs40 billion).
On October 8, 2020, Simbamanyo Estates Limited filed an application seeking for express orders to stay the sale of its properties which took place on the same day.
The bank sold Simbamanyo building on Lumumba Avenue and Afrique Suites Limited, a four-star hotel at Mutungo Hill, Nakawa Division.
Simbamanyo Estates Limited then petitioned the court to stop the sale and takeover its properties until determination of its appeal challenging the order for payment of 30 percent of the outstanding loan.
Deputy registrar Lillian Bucyana on Wednesday February 17 dismissed the matter citing failure to take out summons for directions in time.
Justice Christopher Madrama ruled this:“…the respondent (Equity Bank) upon being served, instructed lawyers and the lawyers took action to oppose the application by filing the appropriate affidavits in reply, as well as written submissions”.
According to Justice Madrama, stopping the sale would have infringed the Bank’s right to be heard and also inconvenienced those who prepared for the auction which was advertised on September 8 fixing the sale date.
“The application for withdrawal was not conceded to unconditionally but was on condition of payment of costs. In the circumstances therefore, the applicant (Simbamanyo Estates) application stands dismissed upon withdrawal and the only issue for consideration is whether should be payable.”