By Bernadette Nakayenze
KAMPALA, April 17, 2024 | The Court of Appeal has granted temporary relief to prominent business mogul Patrick Bitature and his companies, shielding them from execution by Vantage Mezzanine Fund II Partnership in a dispute over defaulted loan payments.
On April 12, 2024, Honorable Justice Oscar Kihiika, presiding as a single Justice of the Court of Appeal, issued an interim order staying arbitration proceedings between Vantage Mezzanine Fund II Partnership and Simba Properties Investment Co. Limited and Others. This interim order halts the proceedings pending the hearing, determination, and final disposal of the substantive application for a stay of proceedings currently pending in the Court of Appeal.
The legal dispute originated from an agreement between Vantage Mezzanine Fund II Partnership and Simba Properties Investment Co. Ltd, wherein businessman Patrick Bitature provided a personal guarantee for a loan facility of USD 10,000,000. The loan was secured with several properties, including land in prominent areas of Kampala.
Following a default on the loan facility, the case was referred to arbitration, where the sole arbitrator rendered an award in favor of Vantage Mezzanine Fund II Partnership. Subsequently, Vantage Mezzanine sought to enforce the arbitral award at the High Court in Uganda, leading to a series of legal battles between the parties.
In November last year, Honorable Justice Ocaya Thomas O.R of the Commercial Court issued an order preventing Bitature and his companies from taking any actions affecting the properties pledged as security until the court determines the pending application for recognition and enforcement of the arbitral award. Bitature and his companies subsequently applied for leave to appeal against this ruling.
Justice Kihiika’s interim order granting a stay of proceedings provides temporary relief to Bitature and his companies, shielding them from execution by Vantage Mezzanine Fund II Partnership. The judge emphasized that the applicants’ application met the necessary conditions for acceptance, including a competent notice of appeal, substantive application, and a serious threat of execution.
This decision is a key development in the ongoing legal battle between Patrick Bitature and Vantage Mezzanine Fund II Partnership. As the fight escalates to the Court of Appeal, the final outcome, now intertwined with criminal proceedings, remains uncertain.
