JOMAYI TYCOON HIRES 3 CITY LAW FIRMS TO BRING DOWN NC BANK
By Mulengera Reporters
More shocking details showing how NC Bank screwed up Jomayi tycoon (Joseph Yiiga Magandazi) have leaked. As we reported yesterday, some of the city bank executives are seemingly determined to financially cripple Jomayi and get him out of business by applying to court to dissolve and wind up his company under insolvency proceedings. The matter is before Civil Division of the High Court and the bank’s claim against Jomayi is over Shs868m and he has up to 30th June 2020 to pay up or face the music.
Legal sources close to the matter have since spoken to Mulengera News shedding more light including explaining that the land initially belonged to a one John Bosco Semogerere who had used the it as security for a loan initially from DFCU bank.
Particularized as Block 410 Plot 20, the disputed land is located in Ssisa Wakiso district off Entebbe road and it measures up to 63 acres. The original owner JB Semogerere duped Jomayi to pay money to DFCU bank where the loan initially was. But Semogerere curiously sold the loan, which Jomayi had started servicing on his behalf, to NC Bank which ended his relationship with DFCU.
But before switching and syndicating the loan to NC Bank, Semogerere had already induced Jomayi to pay over Shs200m to DFCU Bank on his behalf. So, when the loan switched to NC Bank, Jomayi had to forget about the Shs200m expended on DFCU and had to enter fresh negotiations with NC Bank to extinguish all Semogerere’s impending obligations and get the land in return.
THE INSIDE STORY
On 11th September 2019, Justice Anna Bitature Mugyenyi verified and sanctioned a consent judgement between Jomayi and NC Bank. The three page consent judgement was witnessed by both the lawyers of Jomayi and NC Bank who are AF Mpanga.
The consent agreement or judgment, deriving from Civil Suit number 234 of 2018 which NC Bank had filed against Jomayi, indicated that there was an outstanding balance of Shs952m which Jomayi had to pay for the bank to extinguish the mortgage and pass over to him the title for the Ssisa land. It was agreed he would pay Shs100m per month counting from 30th August 2019. The last installment was to be paid on 30th June 2020.
The consent judgement also referred to another Shs436m Jomayi had already paid to NC Bank as the price for the 16 acres of land that it had been previously agreed he pays for separately to enable him cater for his plot-buying customers to whom he had started selling immediately after beginning to service the JB Semogerere loan in DFCU long before NC bank even came into the picture.
The consent judgement further indicates that NC bank was duty-bound to pass over the title and vacant possession to Jomayi for the 16 titles whose full price (of Shs436m) he had paid off 100%. The Shs952m that the consent judgement required him to pay in the 9 installments was strictly for the 46.3 acres (off the original 63 acres).
One of the Jomayi company lawyers Musa Nsimbe, whose employer Kavuma Kabenge Advocates is one of the three city law firms Jomayi has hired to battle NC bank, says his client was continuing to pay his monthly installments until the legal team advised him to stop protesting gross breaches by NC Bank.
In a phone interview with Mulengera News, Nsimbe explained that NC Bank complicated things when they went behind Jomayi’s back and sold the very Ssisa land he was paying for to a 3rd party person which indicated fraud and extreme dishonesty on their part.
Mzee Jomayi separately explains that even the 16 acres court set aside and recognized as fully paid for was never passed on to him by the bank. He says the plot off which the 16 acres was being chopped wasn’t wholly available because the bank had already sold it. He says this has continued to hurt his business reputation because the people he sold plots to can’t have quiet enjoyment of the land because NC Bank-leaning bailifs keep coming threatening to throw them off the land Medard Kiconco-Lusanja style.
When Jomayi halted his monthly installments, protesting breaches by the bank, NC Bank lawyers petitioned court seeking to wind up his business. This is something Jomayi lawyers vehemently protested citing absence of good faith in the way the bank was acting.
Jomayi instructed his lawyers to file an application challenging the statutory note the NC Bank lawyers had come up with in preparation for the winding up proceedings. Before Jomayi’s application no 43 of 2020 could be responded to, the bank filed their petition seeking to wind up his company portraying it as insolvent and incapable of paying off it’s own debts, a thing the lawyers are vehemently protesting under application no 43 of 2020.
The Jomayi lawyers say there are many other remedies NC Bank could pursue if they genuinely wished to recover any money from him rather than wind up proceedings which are clearly aimed at creating anxiety and killing off the company by throwing it’s customers into anxiety. “You can use garnishee orders to attach the company cash on it’s accounts or even attach any of the property. Why would you avoid the Execution Division of the High Court if you are really acting in good faith? You can’t rush into winding up proceedings unless you are being malicious and not acting in good faith,” asserts one of the Jomayi lawyers we spoke to for this article.
As we reported in our story yesterday, NC Bank mantains Shs868m to be the outstanding balance or claim against Jomayi which the company says can be paid before end of May and settle everything upon advice and guidance by it’s lawyers. As that is being considered, Jomayi has also engaged three law firms to battle the NC Bank on his behalf and these are Byaruhanga & Co Advocates, Kintu & Co and Kavuma Kabenge Advocates.
The Jomayi lawyers mantain that their client has been wronged in a number of ways (including NC Bank failing to deliver the 16 acres and part of the 46.3 acres being sold to 3rd parties) and therefore deserves protection by the court.
On the other hand, the NC Bank mantains that Jomayi was to deposit monthly installments and that the moment he skipped some months, he lost all the previledges under the consent judgement which stipulated that the total amount remaining unpaid would become due the moment 30th of the month passed without him meeting his obligations of paying Shs100m installment per month.
Some of the 3rd parties who bought from NC Bank, not knowing Jomayi was already purchasing the same land under a court-supervised process or transaction, have since gone to court suing the NC Bank for curiously selling to them land that is already encumbered.
There is also a one Kanaabi who is so aggrieved he is even prepared to give affidavit evidence for Jomayi against the NC Bank claim. The Kanaabi affidavit will be part of the evidence Jomayi wants to use to show to Court that NC Bank went behind his back and created 3rd party rights on the very same land they had sold to him already under the supervision of Court.
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