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Kampala University seeks court orders to halt eviction

By Vision Reporter

Added 12th December 2014 12:30 PM

Kampala University has gone to court seeking for a temporary injunction to suspend its intended eviction by Eco-bank from its Kawuku -Ggaba based premises.

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Kampala University has gone to court seeking for a temporary injunction to suspend its intended eviction by Eco-bank from its Kawuku -Ggaba based premises.


By Betty Amamukirori

Kampala University has gone to court seeking for a temporary injunction to suspend its intended eviction by Eco-bank from its Kawuku -Ggaba based premises.


In its application filed at commercial court Thursday, Kampala University Vice Chancellor Prof Badru Kateregga, asked court to halt the intended eviction until the main suit is heard and determined.

Earlier on, the owner of the buildings housing Kampala University, Christopher Obey, instructed court bailiffs to close the University for failure to clear rent arrears amounting to sh129m.

According to the demand notice  from Zaaki Auctioneers signed by Isaac Twikirize, Kampala University was given 15 days within which to clear the rent or risk being evicted.

The demand notice also showed that Kateregga was to pay sh13m monthly, an agreement he failed to honour.

Prof. Kateregga in his affidavit said he had entered into a tenancy agreement with Obey, the former Ministry of Finance Principal account, and he was to pay rent of sh5m monthly for a period of five years.

He said through the years, he has been paying promptly all the rent and at the moment, its only sh129m which is unpaid.

He alleged that unknown to him; Obey mortgaged the property to Eco-bank but defaulted on his mortgage obligations.

According to Prof. Kateregga, when Obey failed to pay the loan, he wrote a notice demanding that the University pays the rent arrears to partly settle his mortgage obligations or risk being evicted.

Recently Obey sued Eco-bank accusing it of trying to sell off the buildings to Prof Kateregga. In his application, he alleged that Prof Kateregga had bought the buildings at sh2b from Eco-bank after he failed to complete the loan.

He asked court to issue an interim order restraining Eco-bank from dealing with the University and its Vice Chancellor. The application succeeded and Eco-bank was blocked from dealing or selling the suit property.

However, in his affidavit, the Vice Chancellor said that Eco-bank notified the University of their intention to take over the possession of the property.

He said the bank went ahead and notified the Criminal Intelligence and Investigations Department (CIID) that they had discovered fraud on the part of Obey in his Mortgage dealings.

“He was asked by the CIID to cooperate and provide all the necessary information and documents for the ongoing investigations,” the affidavit read in parts.

He therefore, asked court to give a temporary injunction stopping the eviction, which if carried out will harm the University’s corporate image and name which cannot be compensated by an award of damages.

Meanwhile, the University has also filed an application asking for an interim order blocking Obey and Eco-bank from evicting it.

 

Kampala University seeks court orders to halt eviction

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