Overview:
Court blocks NC Bank's liquidation of Jomayi Property Consultants. Ruling provides temporary relief for real estate firm facing financial woes and client complaints over 1 billion shilling debt
KAMPALA, UGANDA – Court of Appeal Judge Christopher Gashirabake has halted NC Bank Limited’s efforts to liquidate Jomayi Property Consultants Limited, a prominent real estate firm, over a debt of approximately UGX 1 billion.
In 2020, NC Bank took Jomayi to court, seeking debt repayment and liquidation. High Court Judge Michael Elubu initially granted the application, ordering Jomayi’s liquidation. However, Jomayi appealed, and the appellate court has now intervened.
Judge Gashirabake stated that if Jomayi wins its appeal, it would be impossible to implement without a stay on the winding-up process. He emphasized that Jomayi’s appeal raises “triable issues” and that the company would suffer irreparable losses if liquidated.
The judge noted that appointing a liquidator would threaten Jomayi’s existence, causing harm beyond financial compensation. He also acknowledged Jomayi’s efforts to seek a stay of execution in the high court, which had not been addressed.
Jomayi, once Uganda’s leading real estate company, faced numerous client complaints regarding unpaid land titles and substantial debts.
The court’s decision provides temporary relief, allowing Jomayi to continue operating while its appeal is pending.