Business 5 August 2026 Daily Monitor (Uganda)
Court Orders Sale of Shs1 Billion Property Over Shs173 Million Debt
The High Court's Civil Division has ordered the attachment and potential auction of prime Kampala property valued at over Shs1 billion to settle a Shs173 million debt owed by Springs International Hotel. The ruling comes after a prolonged legal battle involving judgment creditors and the hotel. Source: https://www.monitor.co.ug/uganda/business/finance/court-orders-sale-of-shs1b-property-over-shs173m-debt-5547442
A significant legal development in Kampala sees the Civil Division of the High Court ordering the sale of prime real estate assets, collectively valued at over Shs1 billion, to recover a debt of Shs173.36 million.
The ruling, issued by Assistant Registrar Samuel Kagoda Ntende, mandates Springs International Hotel to settle the debt within 30 days. Failure to comply will result in the attachment and auction of its valuable properties, including two condominium units on Colville Street.
Springs International Hotel, controlled by Mukesh Shukla of Shumuk Group, had contested the execution, arguing that the proposed seizure of assets worth significantly more than the debt constituted “over-attachment” and was legally defective due to a lack of valuation reports and title certificates. Their legal team also pointed out existing financial encumbrances, such as mortgages, on the targeted properties, which they argued would take precedence.
However, the judgment creditors, including Angella Katatumba and others, successfully argued that execution was lawfully initiated and that valuation is typically part of the auction process, not a prerequisite for attachment. They also contended that the debtor’s equity of redemption in mortgaged property is attachable, meaning the court can sell the debtor’s residual interest.
The court agreed with the creditors, affirming that the existence of a mortgage does not prevent execution proceedings. Furthermore, the court rejected arguments that a pending appeal before the Court of Appeal should halt execution, citing established legal precedent that an appeal does not automatically grant a stay.
This protracted legal dispute, which has spanned over a decade and involves concurrent litigation in multiple courts, highlights the complexities of debt recovery, particularly concerning high-value assets and prior financial claims. The ruling emphasizes that legal processes aim to prevent the indefinite delay of decree enforcement through appeals.
Source: Daily Monitor (Uganda)