In Hot Soup: Tycoon Ntebekaine Faces Arrest Over Choking Debts, Set To Lose Property

In Hot Soup: Tycoon Ntebekaine Faces Arrest Over Choking Debts, Set To Lose Property

Posted on 16 June 2020 0
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By Spy Uganda

Kabale: City tycoon Obadia Ntebekaine, who is also a popular businessman in Kabale and Busheenyi towns, is likely either to get arrested or surrender most of his properties to bailiffs. This, after failing to service loans worth over USD304, 595, about Shs(1.3Bn) and court damages of over Shs12m.

Ntebekaine’s troubles started after the High Court in Kampala issued an order for his re-arrest for failure to pay Prime Finance 304,595 US Dollars and Damages of 12Million shillings.

It all started when Prime Finance Company sued Ntebekaine vide case file No. 236 OF 2019 of the High Court Commercial Division, accusing him of failing to pay a $3.2million (sh11.8billion) loan in a case dating back to 2008.

Following the standoff, both parties last year agreed on the amount to be paid but Ntebekaine has since breached the agreement and vanished in thin air, which prompted the Financial Institution to return to court where they sought an order for his arrest such that he can execute the judgment issued by court against him.

Ntebekaine, who is also husband to Sheema North MP Kibaaju Naome landed in trouble when Prime Finance filed a suit seeking for orders against him to wit;
To pay a sum of USD 3,071,681, a declaration that the defendant is in violation of the plaintiff’s economic rights enshrined under Article 40 (2) of the Constitution of the Republic of Uganda, Special damages, General damages, Costs and Interest therein.

The parties entered into a loan agreement whereupon the defendant (Ntebekaine) borrowed USD 200,000 (United States Dollars Two Hundred Thousand) for a period of two months and thereafter, he issued a postdated cheque dated the 27th of November 2008 amounting to USD 211,062 (United States Dollars Two Hundred and Eleven Thousand Sixty Two cents) as repayment over the said loan period covering the principal and interest of the same.

However, the two parties had earlier on agreed that in the event that the defendant fails to pay the said loan within the stipulated timelines, he was to continue repaying the loan at an interest rate of 0.60% per week on the outstanding balance until the completion of the loan.
The defendant filed his Written Statement of Defence raising a preliminary point of law that the suit discloses no cause of action and bad in law under the Limitation Act.
He further stated that he cleared his obligation under the loan agreement and prayed that the suit is dismissed with costs.

The plaintiff was represented by Mr. Ssemambo Rashid whereas the defendant was represented by Ms. Farida Ikyimaana.

The parties filed a joint scheduling memorandum wherein they proposed the following issues for determination by this court;
Whether the defendant breached the loan agreement.
Whether the suit is time-barred.
What remedies are available to the parties.
The parties were ordered to file written submissions and accordingly they filed the same.

This Court considered the same in writing this Judgment.

DETERMINATION OF ISSUES

Issue 1
Whether the defendant breached the loan agreement.
Submissions:
Counsel for the plaintiff submitted that the defendant was supposed to repay the said loan within eleven weeks from the date when the loan agreement was executed or continue repaying the outstanding monies at an interest rate of 0.60% per week until repayment in full.

The defendant did not repay back the said loan within the agreed timelines and when the plaintiff subsequently presented the defendant’s cheque No. 1349268 drawn on his Crane bank account for payment, the same was dishonoured for lack of sufficient funds.

The defendant did not dispute these material facts neither does he present any evidence of repayment. Counsel, therefore, submitted that this amounted to breach of the loan agreement .

Counsel, therefore, stated that the defendant cannot escape from his obligation to repay the loan at the agreed interest in light of the duly executed loan agreement and asked court finds so.

Court order for arrest of tycoon Obadia Ntebekaine

In a judgement delivered on March 4, 2020 by Justice Musa Ssekana, he ruled that the plaintiff is awarded general damages of UGX 12,000,000.
The plaintiff was also awarded interest at a rate of 8% on the decretal sum from the date of judgment until payment in full.

Below is Justice Ssekana’s judgment;

THE REPUBLIC OF UGANDA IN THE HIGH COURT OF UGANDA AT KAMPALA (CIVIL DIVISION) CIVIL SUIT NO. 236 OF 2019


PRIME FINANCE COMPANY LTD•••••••••••••PLAINTIFF
VERSUS
OBADIA NTEBEKAINE…………………………………DEFENDANT

ORDER
This matter coming up for final disposal this 4th day of June, 2020 before HON. JUSTICE SSEKAANA MUSA in the presence of Miss Farida Ikyimaana Counsel for the defendant, and Mr. Ssemambo Rashid Counsel for the plaintiff and in the presence of representatives of the parties.
BY CONSENT OF THE PARTIES AND THEIR ACCOUNTANTS AND IN THE FURTHER PRESENCE OF COURT, IT IS HEREBY ordered as follows;

  1. The plaintiff’s claim recoverable under the original judgment of court is US$ 304,595.
  2. The plaintiff is entitled to recovery of US$ 304,595 with interest of 8% from the date of judgment computation that is 4th June 2020.
  3. The plaintiff is awarded general damages of UGX l2,000,000/=.
  4. Costs to the plaintiff.
    Given under my hand and seal of this Hon Court this 4th day of June 2020.”

Ntebekaine made headlines some time back after he allegedly shot at and clobbered former Jose Chameleone Music Manager Charles Oryem aka Sipapa, for allegedly breaking into his residence in Bukoto at night.
He later called police to pick Sipapa who was then in terrible condition and had been dumped in a roadside trench, left for dead.

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