UGANDA, Kampala | Real Muloodi News | For the second time in the last five years, several properties owned by Tirupati Development have been put up for sale by KCB Uganda and Kenya Commercial Bank. Due in part to Tirupati’s failure in repaying its debt.
KCB Uganda and Kenya Commercial Bank published a notice in the last week of September showing they will sell off Tirupati properties unless they pay $5.97m (USH 21.1 billion) within 30 days. The properties up for sale include:
- Condominium units in Ovino, Kampala
- Tirupati Mazima Mall, Kabalagala, Kampala
- Vacant land in Kikaaya, Kampala
- Other units in a business part.
In June 2017, the same properties were advertised, leading Tirupati to take the matter to court. Tirupati claimed it was not in default of any payment to warrant the sale of mortgaged properties. The company further asserted that KCB’s agents were in breach of contract, statutory obligation, and duty. KCB’s interest rate and penalty was unreasonable.
The result of the application was a consent judgement in which Tirupati accepted owing KCB.
The judgement required both parties to set up a new payment plan where Tirupati would pay instalments to KCB, and KCB will release titles of $400 per square metre worth of the amount paid. The instalment outlined specific dates and amounts. The agreement further showed that if Tirupati defaulted, KCB could put the mortgaged properties up for sale.
The consent judgement signed by Tirupati’s advocates reads: “… in the event of default in the payments referred to…. the plaintiff [Tirupati] consents to the sale of the mortgaged properties… with or without a fresh public notice to recover the entire outstanding sum.”
Two years later, following the judgement, Tirupati filed a new application which demanded that the consent judgment be taken back as it was passed because of misrepresentation and lack of material facts.
In September this year, Justice David Wangutusi dismissed Tirupati’s application, stating: “I find no reason to set aside the consent judgement freely entered into by the parties.”
However, Tirupati’s lawyer, Mr Jony Barenzi, claimed they would contest the ruling, and if KCB had advertised the sale of properties, it was done in “bad faith”.
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