The Uganda Muslim Supreme Council (UMSC) received a temporary reprieve on Thursday as the court halted the sale of several prime properties to settle a Shs19 billion debt owed to businessman Justus Kyabahwa.
Initially, a single judge of the Court of Appeal, Justice Christopher Gashirabake, had dismissed UMSC’s appeal, allowing the sale of eight prime properties.
However, a panel of three justices, led by Deputy Chief Justice Richard Buteera, overturned this decision, granting a stay of execution pending the hearing of the appeal.
Justice Gashirabake’s ruling on November 29 emphasized the balance of convenience, favoring Kyabahwa’s right to sell properties to recover his money.
Dissatisfied with this decision, UMSC appealed to the panel of justices, leading to the temporary halt of the property sale.
The properties, outlined in a court attachment order, include the land where the Gaddafi National Mosque is located, plots in Kampala, Kyadondo, Kyanja, Bukwe, Jinja, and subsidiaries’ shares.
The debt dispute emerged from the sale of land in Sembabule District by UMSC to Kyabahwa at Shs3.5 billion.
However, due to the land being leased to Enterprise Handling Services Limited until 2028, Kyabahwa could not take possession.
UMSC was obligated to refund him immediately but failed to do so for the past 15 months, resulting in an accumulated debt of approximately Shs19 billion with a 12 percent monthly interest rate.