Court clears sale of Boss Beverage property over Shs710 million Absa Bank debt
In the ruling, the court allowed Absa Bank to proceed with the sale of the company’s secured property after finding that the borrower had failed to meet its repayment obligations despite previous notices and demands from the lender.
The High Court has ordered beverage company Boss Beverage to settle a debt of more than Shs710 million owed to Absa Bank Uganda, paving the way for the sale of mortgaged property tied to the loan recovery process.
In the ruling, the court allowed Absa Bank to proceed with the sale of the company’s secured property after finding that the borrower had failed to meet its repayment obligations despite previous notices and demands from the lender.
Court documents indicate that the dispute stemmed from a credit facility extended to Boss Beverage, with the company allegedly defaulting on agreed repayment terms. Absa Bank subsequently sought legal permission to enforce its mortgage rights and recover the outstanding amount through the sale of the pledged property.
The court ruled in favour of the bank, stating that the lender had followed the required legal procedures before initiating recovery action. The judgment effectively clears any legal obstacles that had been preventing the disposal of the mortgaged assets.
The decision adds to a growing number of commercial disputes in Uganda’s banking sector involving loan defaults, mortgage enforcement and financial recovery amid continued economic pressure on businesses.
Neither Boss Beverage nor Absa Bank had publicly commented on the ruling by press time.
