Court of Appeal halts sale of Bitature properties 

Businessman Patrick Bitature has been given temporary reprieve after the Court of Appeal issued an injunction blocking Vantage Mezzanine Fund, a South Africa-based lender, from selling his prime properties in Kampala to recover a loan.

Justice Christopher Gashirabake on Monday, June 27, 2022, ruled that the businessman through his lawyers of Muwema and Company Advocates has proved that his properties, among them Protea Hotel (Skyz’s Hotel) in Naguru, are facing a threat of sale.

“There is all evidence that there is a real threat of sale/disposal of the property before determination of the main arguments of jurisdiction of this court can be determined. For this reason, I grant the protective order sought,” Justice Gashirabake ruled.

Mr Bitature, who is the chairperson of Simba Group of Companies, went to the appellate court after the Commercial Division of the High Court dismissed his application in which he had sought to stop the advertisement and auctioning of his properties. 

Mr Bitature had sought a temporary injunction against lawyers Robert Kirunda, Wasige and bailiff Katerega from selling off their properties in a bid to recover the loan until the final disposal of the pending courts cases.

Vantage says it lent Mr Bitature and his various companies $10 million in 2014 of which he has “not paid back one cent” despite the loan term ending in 2019. The lenders say the loan to Mr Bitature’s companies has now ballooned to $32 million after accrued and compounded interest, and penalties, kicked in.

But the judge yesterday ruled that, “any further form of threat of sale or dealing in the advertised property is hereby stayed until the determination of the application of interim orders of stay.”

Justice Gashirabake question the lawyers’ decision to advertise the businessman’s properties if there wasn’t any threat or imminent danger to them.

“Why would the advert in the Daily Monitor have been placed in the newspapers? The advert has not been withdrawn. Is any prudent person supposed to ignore the advert? The answer is a resounding NO. Would anyone rely on the advert to buy the property? Yes,” he said.
The affected properties include; Elizabeth apartments in Kololo, Protea Hotel (Skyz’s Hotel) in Naguru, Moyo Close apartments and Kololo gardens in Kampala.

Vantage’s lawyers had argued that the intended advertisement was to cause the sale of the properties owned by Bitature to recover the money that Vantage is demanding.

But Mr Bitature’s lawyers claimed that Vantage was non-existent and yet by the lawyers and bailiff advertising the said properties, have not only occasioned severe damage to their names and business reputation but have also caused or continue to cause irreparable damage to them.

Justice Gashirabake yesterday said Mr Bitature’s “application is not meant to stop or interfere with the ongoing arbitration, which has to continue, but to protect the property of the subject of the arbitration until the arbitration is concluded.”

The ruling means that Vantage cannot advertise and sell Mr Bitature’s properties to recover the loan until the matter is concluded by arbitration.