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April 14, 2024
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Simba Telecom tycoon Patrick Bitature to lose multi-billion properties after court ruling

Famous Ugandan entrepreneur Patrick Bitature of the Simba Group of Companies looks to be in trouble after a recent court ruling.

The multi-billionaire has been in court facing off with South African based credit firm Vantage Mezzanine Fund II. Vantage Mezzanine last month auctioned off numerous properties belonging to Bitature and his Simba Group of Companies.

Bitature was forced to run to court through his lawyers Muwema and Co Advocates. Vantage put up these properties for sale in the Daily Monitor via their lawyers Kirunda and Wasike Co.Advocates who hired Quickway Auctioneers & Court.

The Properties that were auctioned by Vantage under Simba Group of Companies included:-

” Protea Hotel-Naguru (Skyz Hotel)

Elizabeth Royal Apartments

LRV3891 Folio 18 plot 1 water lane Naguru, Kampala

LRV3895 Folio 3 plot 5 water lane Naguru, Kampala

LRV3895 Folio 4 plot 3 water lane Naguru, Kampala

LRV3435 Folio 10 plot 12 water lane Naguru, Kampala.”

After listing of these properties by Vantage, Bitature ran to Court seekkg an injunction to salvage his properties from being sold off. Court did indeed help him to save them but it has not been for long.

Vantage in 2014 lent 10 million dollars to Bitature under his Simba Group of Companies primarily for development of his empire. He was supposed to repay back in 2019 with all the interest a thing he has failed to do. This forced Vantage to follow what they had agreed upon in the contract a thing Bitature branded malicious.

Bitature issued a notice in media stating that this was a malicious move to taint the image of his businesses.

“It is a malicious advert whose sole purpose is to alarm and cause irreparable damage to our client’s business and reputation. Our client’s properties are not liable to be advertised for sale by any mortgagee purported to be represented by Kirunda & Wasige Advocates and Quickway Auctioneers and Court Bailiffs.” part of his statement read.

Bitature also argued that his agreement with Vantage has a clause stating that in case a disagreement arises, they should seek an agreement out of arbitration at a neutral ground and in this case London was chosen.

A ruling however delivered by the Commercial Division of the High Court presided over by Justice Stephen Mubiru quashed Bitature’s hopes of saving his properties.

According to Judge Mubiri, there was lack of serious questions of the law and fact to be tried by court to justify the grant of a temporary injunction.

Furthermore Mubiru ruled that it was wrong for Simba Group of companies to sue Counsel Robert Kirunda, Counsel Noah Shamah Wasige of Kirunda and Wasige Advocates and Bailiff Festus Katerega of Quick Way Auctioneers and Court Bailiff individually. This is because they were representing a known entity (Vantage) when they advertised their properties for auctioning in the newspapers.

“On the basis of all the foregoing considerations, I found that this application and the underlying suit, were entirely misconceived on account of the fact that they were instituted against agents of a known principal and on ground that the matters placed in issue in the suit are already the subject of a subsisting arbitral process,” ruled Justice Mubiru.

“In the result, I found that a prima facie case had not been established. There were no serious questions of the law and fact to be tried by this court to justify the grant of a temporary injunction. The application was thus dismissed with costs to the respondents and the underlying suit was struck out with costs to the defendants,” the judge further ruled.

This ruling now means that Vantage Mezzanine has been okayed to go ahead and advertise Bitature’s properties for sale in oder to recover their money which now amounts to 30 million dollars.

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