The High Court has authorised Absa Bank Uganda to sell mortgaged property belonging to Boss Beverage in a move aimed at recovering more than Shs710 million in unpaid debt.
The ruling follows a legal application filed by the bank after the beverage company allegedly failed to honour repayment terms tied to a loan facility secured through mortgage arrangements.
According to court findings, the lender issued the required notices and fulfilled legal procedures before seeking permission to enforce the security.
The court subsequently ruled in favour of Absa, clearing the way for the sale of the property attached to the debt.
The judgment marks another major commercial recovery case involving financial institutions and private businesses facing repayment difficulties in Uganda’s challenging economic environment.
Financial analysts note that courts have increasingly backed lenders in cases where borrowers default on secured loans and due process is observed.
The amount in dispute reportedly exceeds Shs710 million, excluding additional legal and
recovery-related costs that may arise during enforcement proceedings.
Efforts to obtain comments from Boss Beverage and Absa Bank Uganda were unsuccessful by publication time.
