Lawyers have started the process of winding up controversial city tycoon Patrick Bitature’s electricity Company as his financial troubles deepen.
Early this week, David Mpanga of AF Mpanga Advocates placed an advert in the newspaper revealing the kickoff of the process of winding up Bitature’s Electro-Maxx Uganda Limited by Oryx Oil Uganda Limited.
“Take Notice that on the 11th day of September 2024, a petition for winding up in respect of Electro-Maxx Uganda Limited was lodged in the High Court (Commercial Division),” the advert read in part.
Electro-Maxx has been struggling with a number of Court cases including the Shs4.3bn legal battle with Uganda Electricity Transmission Company Limited (UETCL) and Citibank where the company is accused of trying to defraud the bank and the government owned electricity company.
theGrapevine exclusively learnt that ABSA bank has also started the process of auctioning Bitature’s multi million properties after he lost the application where he was trying to frustrate the bank’s effort to recover Shs50bn which he secured on behalf of his Electro-Maxx company.
In his application, Bitature wanted Justice Grace Magala of the High Court Commercial Division to issue a directive stopping the bank from recovering the said amount of money claiming that he was not indebted to the bank.
He added that he has never signed a contract or stood as a guarantor.
He maintained that the judgement which the bank wanted to execute against him is before the Court of Appeal.
Bitature through his lawyers led by Brian Moogi claimed that Electro-Maxx filed an application before the Commercial Division of the High Court seeking for stay of execution against it based on a Consent judgment.
He pleaded to the Court that he has a good defense to the suit and it is just and equitable and in the interest of justice that the application and orders sought for are granted.
However, ABSA through their lawyers lead by Counsel Timothy Kanyerezi Masembe based on the affidavit of Esther Masawi, the bank’s Head Business Support and Corporate Recoveries to protest the application noting that it abuses the court process and was filed in bad faith.
She explained to court that Bitature was being sued as a guarantor for indebtedness of Electro-Maxx (U) Limited (the Principal Debtor) which indebtedness was agreed to by a consent judgment dated 24th May, 2020 that was signed by Bitature on behalf of Electro-Maxx.
She added that they agreed that the indebtedness was subsequently reduced upon the payment of 13 monthly instalments and as at 31st August 2023, the indebtedness stood at USD $ 13,568,876 which is now the subject of the demand for payment on Bitature as a guarantor.
In her ruling, Justice Magala established that the application for stay of execution which Bitature claimed was still pending before the court over the matter was dismissed on the 23rd October, 2023 by His Lordship Justice Stephen Mubiru the head of the Commercial Division of the High Court.
The judge further established that Bitature and Simba Oil company signed as a guarantor on behalf of Electro-Maxx when it was securing a loan of USD 40,730,000 and USD 10,000,000 from the financial institution in 2014.
“In my opinion, the two instances i.e. the Consent Judgment dated 15th May 2020 and endorsed by Court on the 21st May, 2020, with its Variations and the guarantor liability of the Applicant under the Guarantee document dated 30th April, 2014 and Guarantee document dated 6th August 2018, are quite distinguishable. The latter can be enforced against the Applicant independently,” the judge stated.
The development comes at a time when Bitature is still battling with the South African Money Lending Company the M/S Vantage Mezzanine Fund 11 Partnership which wanted to auction his companies; Simba Properties Investment Company Limited and Simba Telecom Limited.
Vintage agents also wanted to illegally sell by auction; Elizabeth Apartments at Kololo Kampala, Protea Hotel at Naguru Kampala, Sky Hotels at Kampala, Moyo Close Apartments and Kololo Gardens claiming that they are demanding Bitature over $32m.
By Sengooba Alirabaki
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