The Supreme Court has granted temporary relief to Kampala businessman Patrick Bitature in his ongoing legal battle with Vantage Mezzanine Fund II Partnership, which is seeking to recover at least USD 10 million loaned to him through various companies.

Justice Elizabeth Musoke, sitting as a single judge, issued an interim stay of execution in favor of Bitature, his wife Carol Bitature, and their companies: Simba Properties Investment Co. Ltd, Simba Telecom Ltd, Elgon Terrace Hotel Ltd, and Linda Properties Ltd.

In her ruling, Justice Musoke noted that the opposition mounted by the lenders to the application signaled a likelihood of enforcement before the appeal could be fully heard.

“The fact that the respondent has opposed this application does support a reasonable inference that the lenders are interested in execution of the relevant decree in the near future. I, therefore, find on a balance of probabilities that there is a likelihood of imminent execution of the decree arising from a decision in Court of Appeal Civil Application No. 305 of 2025,” she ruled.

The legal dispute stems from a loan agreement signed in 2014, under which Vantage provided USD 10 million to Simba Properties Investment Co. Ltd. The other companies, along with Carol Bitature, acted as guarantors, pledging property as security for the loan. After Bitature defaulted on repayment, Vantage initiated arbitration proceedings under the London International Chamber of Commerce, resulting in a 2021 award of more than USD 30 million.

Bitature contested the enforcement of the award in Ugandan courts, arguing that Vantage was not legally registered to conduct business in Uganda. The High Court consequently barred him from modifying the shareholding structure of his companies until the matter was conclusively resolved.

The case proceeded to the Court of Appeal, which determined that it lacked jurisdiction to handle the dispute, citing the arbitration clause within the loan agreement. Dissatisfied with that decision, Bitature appealed to the Supreme Court, asserting that the appellate court had misinterpreted its jurisdictional mandate.

Pending the hearing of the substantive appeal, Bitature sought a temporary stay of execution to forestall enforcement of the arbitral award. Granting the stay, Justice Musoke concluded that the issues raised concerning the Supreme Court’s jurisdiction would be more appropriately addressed during the main hearing.

“I would find that the applicants have satisfied the necessary conditions for the grant of an interim order of stay of execution pending the hearing and determination of their substantive application. The fundamental point raised by counsel for the respondent is that this Court lacks jurisdiction over the intended appeal. However, the nature of those arguments is best left to be canvassed in the application for leave to appeal or in the main appeal if leave is granted,” Justice Musoke held.

The Supreme Court will now proceed to hear the substantive appeal.

Source: URN