Court halts sale of prime Muslim properties
Gaddafi National Mosque in Old Kampala. The historical mosque is one of the properties that the UMSC risks losing should it fail to pay a Shs19b debt owed to businessman Justus Kyabahwa. PHOTO/ ABUBAKER LUBOWA
What you need to know:
- On November 29, sitting as a single judge of the Court of Appeal, Justice Christopher Gashirabake dismissed UMSC’s appeal that had sought to stop the sale of its properties reasoning that the balance of convenience was to allow businessman Justus Kyabahwa to sell off the eight prime properties to recover his money.
The Uganda Muslim Supreme Council (UMSC) can breathe a sigh of relief after court on Thursday temporarily stopped the sale of its several prime properties to pay off a Shs19b debt it owes a city businessman.
On November 29, sitting as a single judge of the Court of Appeal, Justice Christopher Gashirabake dismissed UMSC’s appeal that had sought to stop the sale of its properties reasoning that the balance of convenience was to allow businessman Justus Kyabahwa to sell off the eight prime properties to recover his money.
“In the circumstances of this case, the applicant (UMSC) has failed to prove that it has a likelihood of success in the pending appeal or that it will suffer any damage or harm that cannot be atoned for by an award of damages. Clearly, the balance of convenience would be in not granting this application for stay of execution but to allow the party (the businessman) with the judgment in hand to proceed with the execution process,” ruled Justice Gashirabake.
He continued: “Consequently, for the reasons I have given above, this appeal is dismissed. The costs shall abide by the outcome of the appeal.”
However, being dissatisfied with the decision of Justice Gashirabake, UMSC appealed to a panel of three justices led by Deputy Chief Justice Richard Buteera who on Thursday overturned Justice Gashirabake's ruling.
They unanimously held: “We have listened to both counsels for the parties and the written submissions of counsel for the applicants. We grant a stay of execution pending the hearing of the pending appeal. We shall give detailed reasons on notice."
Other justices are; Geoffrey Kiryabwire and Irene Mulyagonja.
According to a court attachment order seen by the Monitor, properties to be attached are land comprised in leasehold register Volume KKCA 149 Folio 16 land at Kampala City William Street 30, land comprised in leasehold register volume 2771 Folio 2, Old Kampala Plot 23-25 where the Gaddafi National Mosque sits, Kyadondo Block 195 Plot 5463 land at Kyanja, and one Square Mile of land at Bukwe, Hoima road.
Others are; a one-acre piece of land located at Lumbas, Jinja, Plot of land at Mbale, shares in Uganda Ranchers Ltd and Commercial Holdings Ltd; subsidiaries to Uganda Moslem Supreme Council that owns two square miles of land at Migyera-Buluri and a plot in Entebbe opposite Victoria Mall.
The attachment court order arose out of a protracted sale of land in which the UMSC sold land located in Sembabule District to Kyabahwa at Shs3.5 billion.
However, Kyabahwa could not take possession of the said land since it was already leased out to Enterprise Handling Services Limited (ENHAS) for 15 years from 2013 to 2028.
So, since Kyabahwa could not take possession of the land, the UMSC was supposed to refund his money immediately but did not and had not paid him for the past 15 months.
This saw interest charged at 12 per cent per month, catapulting the money that the UMSC is supposed to pay him to amount to about Shs19b.
