Court orders attachment of Aya gym equipment over sh300m debt
The gym equipment, estimated to be worth sh35m, is to be attached and sold to recover part of the outstanding debt. The order was approved by deputy registrar Jessica Chemeri as Sanlam continues to pursue other properties belonging to Aya to recover the entire amount.
Court orders attachment of Aya gym equipment over sh300m debt
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The Commercial Division of the High Court in Kampala has ordered the attachment and sale of 26 gym equipment items belonging to businessman Mohammed Hamid of Aya Investment Uganda Limited over an outstanding debt of more than sh300m owed to Sanlam General Insurance Uganda Limited.
The gym equipment, estimated to be worth sh35m, is to be attached and sold to recover part of the outstanding debt. The order was approved by deputy registrar Jessica Chemeri as Sanlam continues to pursue other properties belonging to Aya to recover the entire amount.
“Whereas the respondent (Aya) was ordered by the decree of this court passed on April 12, 2022 to pay the applicant (Sanlam) the outstanding sum of $62,037 (about sh243m) and sh81m respectively, which has not been paid to date. This is to command you to attach movable property of the respondent. You are commanded to return this warrant on October 10, 2026 with endorsement thereon certifying the manner in which it has been executed or the reason it has not been executed,” the decree reads.
According to the warrant of attachment and sale issued by the court, Sanlam has until October 10, 2026, to attach and sell the equipment.
Kyagulanyi said Aya did not attend the meeting to agree on a payment arrangement, leaving them with no option but to proceed with the attachment and sale of the equipment as ordered by the court.
He said the first attempt to attach the equipment failed because the premises are now under the control of State House, with access restricted, but they intend to engage the relevant authorities to ensure a smooth exercise.
“We know that our government respects the rule of law and they will allow us to attach the equipment in fulfilment of the court decree,” Kyagulanyi said.
When contacted, Aya's lawyer, Fox Odoi, said they wanted the matter resolved amicably.
How did the debt come about?
The debt arose from various insurance policies that Aya took out with Sanlam, including assets all risks, workers' compensation and fidelity guarantee insurance policies, during the period 2018-2019.
Aya allegedly defaulted on premium payments amounting to $38,773 (about sh144m) and sh33.6m, prompting Sanlam to sue the company to recover the money.
On June 23, 2022, High Court judge Jeanne Rwakakooko entered judgment against Aya, ordering it to pay $38,773 and sh33.6m as the outstanding sum.
In addition, Aya was ordered to pay $11,631 (about sh43m), sh22m in costs, sh5m in general damages and sh10m in interest on the award.