UGANDA, Kampala | Real Muloodi News | Jomayi Properties, formerly known as Jomayi Property Consultants Ltd, one of Uganda’s most prominent real estate companies, has been declared insolvent by a court order and sent into liquidation.
The court’s decision follows a petition from NC Bank, which sought to recover UGX 868,250,000 from Jomayi Properties.
In 2018, Ssemwogerere John Baptist held land in Busiro Block 410 Plot 20 located at Ssisa, Wakiso District. The land was mortgaged to NC Bank Uganda Limited to secure loan facilities granted to Value Trading Stores Limited.
The borrower failed to meet its payment obligations, prompting NC Bank to issue a notice of sale for the mortgaged property through public auction or private treaty.
Jomayi Property Consultants Ltd, owned by Joseph Magandazi Yiga, agreed with NC Bank to purchase 50.2 acres of the land at a total cost of UGX 1.506 billion out of Block 410.
The agreement included six installments of UGX 251 million each. Any unpaid installment would incur interest at the prevailing prime lending rate of 21.5% from the due date until full payment.
However, Jomayi Property Consultants Ltd allegedly failed to meet the agreed payment schedule. In 2018, NC Bank filed a lawsuit in the High Court to recover UGX 1.165 billion, which represented the unpaid balance on the purchase price of the land.
The parties entered into a consent judgment, requiring Jomayi Property Consultants Ltd to pay NC Bank UGX 925,250,000 in ten monthly installments.
After Jomayi Properties defaulted on its payments, the outstanding amount of UGX 868,250,000 became immediately due and payable to NC Bank.
NC Bank served a statutory demand on Jomayi Properties in January 2020, requiring the company to pay the sum within 20 days of the service date, or face insolvency proceedings.
The court declared that Jomayi Properties was indebted to NC Bank and unable to pay its debts.
“From the evidence provided, the court is satisfied that the respondent is indebted to the petitioner and unable to pay its debts,” the judge noted.
The court also ordered Jomayi Properties to pay costs to the petitioner from the company’s liquidation.
“A declaration is hereby made that Jomayi Properties is unable to pay its debts and is insolvent. An order to wind up/liquidate Jomayi Properties is hereby issued,” the judge stated.
In 2016, Jomayi Property Consultants Ltd had already faced financial challenges when properties including Yiga Chambers, the company’s headquarters, and land in Nalumunye in Wakiso District, as well as a stone quarry in Mukono District, were put up for sale to recover a loan from another commercial bank.
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