Jomayi Property Consultants, a renowned player in the real estate industry, finds itself amidst considerable financial turmoil due to escalating debts. This predicament has resulted in a court-mandated liquidation to settle outstanding obligations amounting to 1 billion shillings.
The recent legal confrontation involving Jomayi Property Consultants transpired at the Commercial Division of the High Court, where they confronted NC Bank regarding a loan procured for the acquisition of a 63-acre parcel of land in Busiro, Wakiso District.
Despite entering into a 1.5 billion shillings loan agreement with the bank, Jomayi encountered difficulties in fulfilling its repayment commitments. High Court Judge, Justice Michael Elubu, presided over proceedings where a consent judgment was established, mandating Jomayi to settle its overdue debt through installments over an eight-month period. Nonetheless, Jomayi repeatedly defaulted on these payments.
Consequently, the court issued a ruling which:
- Declared Jomayi Property Consultants Ltd's failure to comply with the statutory demand.
- Acknowledged Jomayi Property Consultants Ltd's indebtedness to the petitioner, NC Bank, amounting to 868,250,000 Ugandan shillings.
- Recognized Jomayi Property Consultants Ltd's insolvency and inability to meet its financial obligations.
- Ordered the winding up/liquidation of Jomayi Property Consultants Ltd.
- Directed the allocation of costs incurred by the petitioner during legal proceedings from the proceeds of the winding up/liquidation process.
Founded by Joseph Yiga Magandazi, Jomayi Properties was once a leading force in simplifying land acquisition for urban dwellers in the Kampala metropolitan area. However, internal disagreements among partners and subsequent departures led to a downturn in the company's fortunes. This downturn manifested in defaults on bank loans and the failure to furnish clients with title deeds for sold land.
NC Bank's claim of 850 million shillings represents just one facet of Jomayi's financial tribulations, as the company grapples with multiple liabilities owed to various creditors within the city.
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