MP contestant seeks court quash bankruptcy order against him

COURT|BANKRUPTCY|#ElectionsWatch2021

KAMPALA - Having been declared bankrupt by the High Court last month, Ronald Ndawula has sought court to set aside the same order to enable him to contest in the forthcoming MP elections.

Ndawula, the Luweero district National Resistance Movement (NRM) chairperson was declared bankrupt after he failed to pay sh542m debt, owed to Hirra Traders Uganda Limited.

Justice Duncan Gaswaga of the Commercial Court declared Ndawula bankrupt following a bankruptcy application filed by Hirra Traders, Uganda Limited on August 31, 2020.

However, Ndawula petitioned court arguing that the bankruptcy proceedings were tainted with breach of rules of natural justice and denial of the non-derogable right to a fair hearing.

"The respondent used the bankruptcy proceedings as a single debtor to enforce his debt, black mail and sabotage my personal life, business and public service/ political ambitions," he contends.

He claims that the respondent is constantly communicating and liaising with his political opponents in the ongoing Katikamu North MP election campaigns to let him down.

The applicant further states that has lost his constitutional right to participate in political space after he had been proven credible and fit to contest in the 2021-2026 MP elections.

The Law

Under the law, a person declared bankrupt is disqualified from holding any key government office such as that of the President, Minister, Member of Parliament, Member of Local Government, Council, Board Authority or any other government body. 

Background

Court documents indicate that in 2012, Mazhar Qayyum, the proprietor of the company, dragged Ndawula to court, contending that he sold to him cars worth sh223m on credit.

In 2015, court ruled the case in favour of Qayyum and directed Ndawula to pay him the money. The court also awarded Qayyum costs, damages and interest on the amount, bringing the debt to sh542m.

Since then, efforts by Qayyum to get the money from Ndawula were futile. Qayyum also got a court bailiff to help him attach his (Ndawula's) properties to recover the money in vain.

This prompted Qayyum to run back to court, seeking Ndawula to be declared bankrupt, hence the order.