The Court of Appeal in Kampala has granted businessman Justus Kyabahwa permission to proceed with the sale of properties owned by the Uganda Muslim Supreme Council (UMSC) to recover a debt of 18.9 billion Shillings.
This decision follows the dismissal of UMSC’s application for a stay of execution of a warrant that allowed Kyabahwa to attach nine properties.
The dispute originated from the sale of UMSC’s Sembabule Ranch land to Kyabahwa in 2020 for 3.584 billion Shillings.
According to the sale agreement, UMSC was to hand over possession of the land within 60 days, and in case of any delay, they would refund the money with 12% monthly interest. However, UMSC sold the land to another entity, prompting Kyabahwa to seek the recovery of 18.9 billion Shillings.
The commercial court ruled in Kyabahwa’s favor on August 7, 2023, allowing him to execute the judgment. Subsequently, a warrant of execution was issued on November 16, permitting the sale of nine properties, including Gadafi Mosque in Old Kampala.
UMSC appealed the decision and sought a stay of execution, arguing potential irreparable loss and claiming that the right of appeal would be jeopardized if the execution proceeded. However, Justice Christopher Gashirabake dismissed UMSC’s application, stating that they failed to provide sufficient evidence of irreparable harm that couldn’t be compensated by damages.
Kyabahwa’s lawyer, Ahmed Kalule Mukasa, opposed the application, asserting that UMSC’s concerns were unfounded and that the execution wouldn’t impact the existence of the Islamic faith.
Justice Gashirabake concurred, noting that the fear of property loss did not translate into harm that couldn’t be compensated by damages. He emphasized that the appeal had no strong chance of success, urging UMSC to focus on the substantive dispute rather than pursuing peripheral issues.
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