Kasese Hospital Limited ordered to vacate property over debt dispute
"The defendants shall vacate and hand over the vacant possession of the suit property to the plaintiffs within ninety days from the date of this judgment (June 10, 2026). In default of the compliance, the plaintiff shall be at liberty to execute this order through lawful evicted and the plaintiff is awarded the costs of this suit,” Mugenyi said
Justice Anna Mugenyi directed the defendants to vacate the property comprised in FRV HQT 753 Folio 19, Block 26, Plot 182 at Kabuyiri, Bukonzo County, Kasese district.
KASESE - The Commercial Division of the High Court has ordered Kasese Hospital Limited and John Henry Baguma to vacate land located at Kyabuyiri in Bukonzo County, Kasese district.
Justice Anna Mugenyi directed the defendants to vacate the property comprised in FRV HQT 753 Folio 19, Block 26, Plot 182 at Kabuyiri, Bukonzo County, Kasese district.
According to court documents, Kasese Hospital Limited was advanced a loan facility and under an agreement, the loan was secured by property comprised in FRV HQT 753 Folio 19, Block 26, Plot 182 at Kabuyiri, Bukonzo County, Kasese district, registered in the name of Baguma.
While delivering the ruling on June 10, 2026, Justice Mugenyi directed that the property be vacated within 90 days, failing which, lawful and peaceful eviction may be carried out.
"The defendants shall vacate and hand over the vacant possession of the suit property to the plaintiffs within ninety days from the date of this judgment (June 10, 2026). In default of the compliance, the plaintiff shall be at liberty to execute this order through lawful evicted and the plaintiff is awarded the costs of this suit,” Mugenyi said
Following the default by Kasese Hospital Limited, the lender, Microfinance Support Centre, initiated foreclosure proceedings to recover the outstanding loan balance.
The property was subsequently advertised and sold by public auction to Johnson Kalenbayi Bwambale on July 19, 2019, and the title was later transferred into his name.
Microfinance Support Centre contends that, before completion of the transfer, Kasese Hospital Limited filed a case challenging the sale of the mortgaged property.
However, judgment was entered in favour of the Microfinance, with the court finding that there was no breach and that the sale was valid, and the suit was dismissed with costs on August 19, 2024.
According to the Microfinance Support Centre, Baguma is the registered proprietor of the property, and the Kasese Hospital Limited has a legal duty to hand over vacant possession following completion of the sale.
However, Baguma has allegedly refused to vacate the property despite several notices and engagements, prompting Microfinance Support to seek court intervention to grant vacant possession in the interest of justice.
In response, the defendants contend that the suit was dismissed; they have appealed the decision to the Court of Appeal in Civil Appeal, which is still pending.
They further state that they have filed an application for a stay of execution of the judgment and orders of the court under Miscellaneous Application.