Absa Bank Uganda has secured a court victory against Boss Beverage after the High Court authorised the sale of mortgaged property linked to an unpaid debt of more than Shs710 million.
The ruling came after the bank petitioned court to enforce its mortgage rights, arguing that the beverage company had defaulted on a loan facility despite repeated reminders and repayment demands.
In its decision, the court found that the lender had lawfully exercised its rights under the mortgage agreement and complied with the procedures required before seeking to recover the money through sale of the secured property.
The judgment now allows Absa Bank to move ahead with the disposal of the mortgaged assets to recover the outstanding loan amount and related costs.
The dispute reflects broader financial challenges facing some companies in Uganda, where businesses continue to grapple with loan obligations, high operating expenses and economic uncertainty.
Commercial lawyers say the ruling serves as a reminder to borrowers about the legal consequences of defaulting on secured loans, especially where financial institutions hold registered mortgage securities.
Neither party had released an immediate statement following the court’s decision.
