Housing Finance Bank headquarters in KampalaThe Court of Appeal has granted Housing Finance Bank a stay of execution, blocking the enforcement of High Court orders that had cancelled its sale of a Najjera property and restored it to borrowers.Justice Esta Nambayo, sitting as a single justice, issued the stay on September 22, 2026, pending determination of the Bank’s appeal in Civil Appeal No. 0459 of 2026.The case stems from a loan facility secured by a mortgage over Kyadondo Block 219 Plot 1138 at Najjera belonging to Barnabas Samuel Aliku and Christine Mutesi Aliku. After default, the Bank exercised its statutory power of sale, selling the property for Shs135 million to Speke Uganda Holidays Limited.On May 31, 2026, the High Court in Civil Suit No. 0021 of 2019 declared the sale unlawful, set aside the transaction, ordered cancellation of the purchaser’s title and reinstated the borrowers as owners. It however upheld the Bank’s mortgage as a valid encumbrance.The High Court had also awarded the borrowers Shs3 million in special damages, Shs20 million in general damages and Shs5 million in punitive damages, and dismissed the Bank’s counterclaim of Shs15.5 million.Challenging the judgment, Housing Finance Bank argued that the trial court relied on an alleged Shs235 million offer with no documentary proof to find undervalue, and made inconsistent findings by upholding the mortgage and confirming default but dismissing its claim for the outstanding balance.The Bank warned that execution was imminent and that Speke Uganda Holidays Limited had demanded Shs1.3 billion in compensation for loss of the property.In her ruling, Justice Nambayo agreed that the appeal raises substantial questions of law.“I find that the grounds raise substantial questions deserving consideration by the appellate Court,” she ruled, noting that immediate enforcement would alter the title and possession before the legality of the sale is conclusively determined.She added that the property could be transferred to third parties, making it difficult to restore if the appeal succeeds.“The validity of the foreclosure sale and the proprietary interests arising from it ought to be preserved until the appeal is heard and determined,” Justice Nambayo said.The judge noted that the borrowers would not suffer irreparable harm since Housing Finance Bank is a regulated financial institution able to satisfy the monetary awards if it loses, and that it had offered security for due performance.The stay preserves the current status of the Najjera property until the Court of Appeal hears and determines the Bank’s appeal.The post Big Relief for Housing Finance Bank as Court of Appeal Halts Najjera Property Takeover appeared first on Business Focus.