Court of Appeal halts liquidation of Jomayi Property Consultants

The judge also agreed with Jomayi that there is a likelihood that his appeal would succeed because according to him, it raises triable issues

Kampala, Uganda | THE INDEPENDENT | The Court of Appeal Judge Christopher Gashirabake has issued an order stopping NC Bank Limited from starting the process of winding up Jomayi Property Consultants Limited, a real estate company.

In 2020, NC Bank dragged Jomayi to court seeking to recover close to 1 billion Shillings in debt. The Bank also sought orders to wind up Jomayi and the appointment of a liquidator to manage its properties.

Sitting as a single judge, Gashirabake said if Jomayi wins its appeal that is still pending, it would be impossible to implement if he doesn’t stop its winding up until the matter is determined.

“The balance of convenience is in favour of the Applicant… Since the Applicant is exercising its unrestricted right of appeal and meets the conditions for the grant of stay of execution, this Court must ensure that their appeal if successful is not rendered nugatory,” Gashirabake’s ruling reads in part.

The judge adds that if he doesn’t issue an order staying execution, there is a real threat of Jomayi being wound up. “Once the liquidator is appointed, then the existence of the applicant is threatened. This cannot be atoned for in damages.

The winding up of a company has other implications that go beyond financial compensation. I therefore find that the Applicant has demonstrated that it would suffer irreparable loss,” the ruling adds.

The judge also observed that Jomayi had proved to the court that he tried to seek a stay of execution order in the high court but the court has since not set a time for hearing of the application. “The Applicant averred that if the application is not granted the appeal would be considered nugatory. I am satisfied that the circumstances of this case demonstrated the urgency of the matter which the High Court has not been able to address,” Gashirabake’s ruling adds.

The judge also agreed with Jomayi that there is a likelihood that his appeal would succeed because according to him, it raises triable issues.

In 2020, NC Bank dragged Jomayi to court seeking to recover close to 1 billion Shillings in debt. The Bank also sought orders to wind up Jomayi and the appointment of a liquidator to manage its properties.

High Court Judge Michael Elubu granted the application and ordered the liquidation of Jomayi. Dissatisfied, Jomayi appealed the ruling that is yet to be determined. In the meantime, the bank wanted to move on with liquidating the company which now the appellate court has stopped.

Jomayi until its current problems was the leading real estate company in Uganda.

It was buying and selling land in many parts of the country until a number of clients started complaining that they had bought land, but the company had failed to offer them titles. The company also contracted very many debts which became very hard for them to pay off.

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