Prime
Ex-Buganda premier sues money lender
Former Buganda premier, John Baptist Walusimbi. FILE/PHOTO
What you need to know:
- Eng Walusimbi is also seeking a permanent injunction against Mr Jain stopping him from disposing off his properties, payment of special damages of Shs471m, among other reliefs as court may see it fit.
Former Buganda Prime Minister John Baptist Walusimbi has sued a money lending company and an estate administrator seeking more than Shs471m as damages for unjust enrichment.
In a case filed before the Commercial Division of the High Court, Eng Walusimbi, who was Buganda prime minister between 2008 and 2013, accuses R. L. Jain Limited and Mr Rajnish Jain, the administrator of estate of the late R. L. Jain of seeking to defraud him with an illegal loan of Shs5b.
Acting through J Byamukama and Co Advocates, Eng Walusimbi faults the accused for unjust enrichment, breach of mortgage agreements and wants court to order the return of his certificate of title of land comprised in Kyadondo Block 263 plot 134 and 819 at Bunamwaya Kyadondo, Wakiso District.
Eng Walusimbi is also seeking an order to the Registrar of Titles to vacate mortgages entered on his land, general damages, interest on the special and general damages and cost of the suit.
According to documents filed before court, on May 21, 2011 Eng Walusimbi executed loan agreements with Mr Rajnish Jain wherein he was advanced Shs6.3m secured against 202 hectares of land in Singo, Myanzi.
Court documents further indicate that in September, two other loans of Shs6.9m and Shs6.16m were advanced to Eng Walusimbi and were secured by 0.48 hectares and 0.211 hectares of land, respectively comprised in Kyadondo, Bunamwaya in Wakiso District.
However, Eng Walusimbi is now faulting Mr Jain of consolidating the loans without his consent and demanding a 15 per cent per month interest, which translates into 180 per cent per annum.
He claims that in 2012 he made two payment of Shs8.27m and Shs6.3m as loan repayments but was, however, surprised when Mr Jain on March 23, 2016, foreclosed on his property in Myanzi, Singo, which he sold at Shs500m yet the property had been valued at Shs2b.
The irregular foreclosure, Eng Walusimbi says, fully compensated for the loans that at the time stood at Shs514m.
However, Mr Jain rejected the compensation claims and continues to hold titles of land comprised in Kyadondo Block 263 plot 134 and 819 at Bunamwaya Kyadondo, Wakiso District until Eng Walusimbi pays Shs5.3b being accumulated principal and interest.
Consequently, Eng Walusimbi wants court to enter judgement against Mr Jain, with a declaration that he settled the loans together with interest in full.
Eng Walusimbi’s prayer
Eng Walusimbi is also seeking a permanent injunction against Mr Jain stopping him from disposing off his properties, payment of special damages of Shs471m, among other reliefs as court may see it fit.
