law 29 August 2026 The Observer (Uganda)
Court of Appeal Halts Shs 1.27 Billion Debt Enforcement Against Businessman Abid Alam
The Court of Appeal has issued a temporary halt to the enforcement of a High Court order that would compel businessman Abid Alam and his company, Casements (Africa) Limited, to pay over Shs 1.27 billion to a Chinese glass manufacturer. This stay is in place pending the hearing of their appeal. Source: https://observer.ug/news/court-of-appeal-halts-shs-1-27bn-debt-enforcement-against-businessman-abid-alam
In a significant development, the Court of Appeal has intervened to pause the enforcement of a High Court decree against businessman Abid Alam and his company, Casements (Africa) Limited. The decree mandated the payment of approximately Shs 1.27 billion (over $338,000) to Chinese firm Weihai Rongsheng Glasswork Co. Limited.
Justice Florence Nakachwa of the Court of Appeal granted the stay on August 28, 2026, following an application by Casements and Alam. They argued that proceeding with the debt enforcement before their appeal could lead to irreversible financial harm and render their appeal meaningless.
The legal dispute originated from contracts signed in June 2022 for the supply of glass by Weihai to Casements. Weihai claims the glass was delivered, but Casements failed to make the payment within the agreed 120-day period, leading to the lawsuit and subsequent judgment in favor of the Chinese company.
Casements and Alam contend they were deprived of a proper defense due to alleged errors and oversights by their former legal representation. They stated that their initial lawyers failed to attend a crucial High Court hearing for their defense application, resulting in a default judgment. A subsequent attempt to set aside this judgment was also dismissed by the High Court.
During the appeal proceedings, Weihai argued that the debt was acknowledged and payment arrangements were made and broken. They also highlighted ongoing execution efforts, including attempts to attach Alam’s shares and freeze company bank accounts. However, Justice Nakachwa found that the applicants had demonstrated arguable questions for appeal, particularly concerning the alleged procedural errors and the potential for irreparable harm, including the risk of civil imprisonment for Mr. Alam.
The court’s decision to grant the stay prioritizes the protection of Mr. Alam’s personal liberty while his appeal is being heard, finding that the balance of convenience favors this approach. The suspension of the enforcement means the Shs 1.27 billion decree will remain on hold until the Court of Appeal makes a final determination on the case.