The Court of Appeal in Kampala has issued an interim order preventing the sale of businessman Patrick Bitature’s properties by South African money lending company Vantage Mezzanine Fund.
The move comes as Bitature filed an appeal against the High Court’s decision in November 2023.
Mr. Bitature’s appeal, filed on November 22, 2023, challenged the High Court’s ruling on Miscellaneous Application No. 2484 of 2023.
Additionally, a substantive application for stay of proceedings (Civil Application No. 1299 of 2023) is pending.
The Court of Appeal, led by Justice Oscar John Kihika, found merit in Bitature’s case, stating that the appeal is not frivolous and vexatious.
“Therefore, an interim order of stay of proceedings has been issued in High Court Arbitration Cause No. 0072 of 2023, pending the hearing and final disposal of the substantive application. Furthermore, costs shall abide by the outcome of the substantive application,” Justice Kihika ruled on 12th April 2024.
The legal battle traces back to June 2022 when the High Court-Commercial Division dismissed Bitature’s application to block Vantage Capital from selling his properties to recover a $34 million debt.
The debt stemmed from a loan of $10 million borrowed by Bitature in 2014, which he attributed to the adverse impacts of the Covid-19 pandemic and delayed oil production in Uganda.
Despite Bitature’s efforts to halt the sale through legal means, the High Court’s Justice Stephen Mubiru dismissed the application, ruling that no serious questions of law and fact were established to justify a temporary injunction.
Justice Mubiru emphasized that the matters raised in the suit were already subject to a subsisting arbitral process. He reiterated the court’s stance of non-intervention due to the valid and binding arbitration agreement between the parties.
Bitature, represented by Muwema and Co. Advocates, had sued Vantage’s legal advisors and the Commissioner of Land Registration in an attempt to block the sale. However, the court’s ruling favored Vantage, indicating that the application and the underlying suit were misconceived.
The legal battle surrounding Bitature’s properties highlights the complexities of debt recovery and the importance of legal processes in resolving such disputes.
As the case progresses, stakeholders await further developments in this ongoing saga.
