Investor blocks sale of Ssebagala property over debt

Meddie Ssebaggala proprietor Ssebaggala Sons Electro Centre

An Investment funder has asked court to block attempts by loan provider Grofin Africa Fund Uganda Limited, to auction prime land in the city suburb of Kololo, owned by debt-ridden electrical dealer Meddie Ssebaggala of Ssebaggala Sons Electro Centre.

On April 18, Equinox International Limited filed an application at the civil division of the High Court in Kampala, blocking the auction, until court decides on whether the electrical dealership should be dissolved.

A notice has been published by Grofin, indicating that the intended auction is scheduled for April 28.

The land is comprised in LRV 2373 Folio 18 Mackenzie Vale. Through Lutaakome and Company Advocates, the investment funder is seeking an interim order restraining any auction, scheduled for April 28.

Equinox managing director Ali Ssendijja has sworn an affidavit in support, saying he has seen a notice of the intended auction and in the event that it proceeds, the investment funder's main case will be rendered useless.

"It is apparent that the first respondent (Grofin) is determined to proceed with the sale or disposal of the second respondent's (Ssebaggala) said property as per the said advert," Ssendijja laments.

Adding: "If this application is not granted, the purpose of the main application will be rendered nugatory."

Prior on April 5, Equinox petitioned court, seeking to liquidate the electrical dealer over purported failure to pay a sh2.1b credit facilitation.

Main case

Court documents show that in a letter dated August 1, 2016, addressed to Ssebaggala, Equinox halted supplies until debt payment.

The investment funder claims the electrical dealership promised to pay but failed. Subsequently in a letter to Ssebaggala dated December 21, 2016, the dealership was given a final reminder to pay up or face legal action.

On January 23 this year, Equinox instructed the law firm to institute legal proceedings, to recover the money.

The investment funder says even with the threat of legal action, Ssebaggala has remained adamant and made several unfulfilled promises.

Consequently, Ssebaggala was served a statutory demand dated February 28, 2017. Equinox justifies the push for a declaration of insolvency, saying there is no pending application to bar the the statutory demand.

The petition is supported by the affidavit of the Equinox managing director Kizito Ssendijja, who laments that initially, Ssebaggala was one of the outstanding customers who made prompt payments.

Ssebaggala is yet to file his response. A hearing date is yet to be fixed.