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Katatumba wins case over property row


Katatumba wins case over property row

Businessman Boney Katatumba has won a case in which he has been challenging Shukla Mukesh of Shumuk Group for illegally takingover Katatumba Suites and other properties.

Presiding Judge Justice Henry Peter Adonyo Monday ordered Shumuk to pay Katatumba about Shs10b in damages.

The money includes a 24 per cent interest on a $1.7m debt and rent for the illegal occupation of Katatumba suits for more than five years.

The Judge also ordered Shumuk to cancel titles for four properties including Katatimba Suites, Hotel Diplomat and Katatumba Banda Island that he had transferred to his [Shumuk] business empire.

The case which has lasted more than five years has witnessed a number of dramatic evictions; with the most recent being the ejection of Katatumba, a day after court had ordered that he regains his properties.

The eviction had followed a court injunction after Shumuk had requested for a stay of execution pending disposal of an appeal.

The case is delivered from an August 16, 2008 agreement in which Katatumba had agreed to sell his property (Katatumba Suites) to Mukesh at a cost of $5m.

The money would be used to pay a number of creditors including Crane Bank, ($2.45m), Virani ($750,000), Harish ($200,000), Tecton ($200,000), Peter Lule ($400,000), Centenary Bank ($100,000), Arvind Patel ($500,000), Ben Kavuya ($200,000) and city lawyer Charles Odere ($200,000).

But in a November 10, 2008 aggreement Shumuk indicated he could only give Katatutmba $4m.

However, details indicate that Mukesh paid only $3.059m and failed to pay the balance of [$1.7m], forcing Katatumba to drag him to court.

While in court, Mukesh admitted that he owed Katatumba $1.7m and a High Court judgment dated May 20, 2009, ordered Mukesh to pay the said sum but did not pay the money as per the agreement.

Court also said it was illegal for Shumuk to use a November 10, 2008 agreement to take over other properties without fully meeting his part of the bargain.

In the agreement, according to court details Shumuk had only asked for titles of Hotel Diplomate, that of his home in Kisugu and Katatumba Resort Island Banda on Kalangala Island to allow him borrow money in order to complete the transaction.




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