The High Court in Kampala has given two companies a final 90-day extension to pay a security deposit and prevent Equity Bank Uganda from selling several prime properties.
Emin Pasha Ltd and Prism Construction Co are seeking to block the bank from auctioning mortgaged sites in the Nakasero and Kisugu areas of the capital.
In a ruling delivered on 19 December, Mr Justice Ocaya Thomas said that while the court usually avoids changing agreed orders, it could do so in rare cases to prevent a “manifestly harsh effect”.
The companies have already paid $2.3m (£1.8m) of the $2.73m deposit required to keep the injunction in place.
“This court has power to modify a consent, albeit that such power is used very, very sparingly,” the judge said.
The legal battle stems from a larger case in which Equity Bank is attempting to recover more than $8m in unpaid loans.
The companies had agreed to a payment schedule in October but missed the final instalment of $430,000. They told the court the delay was due to the Ugandan government failing to pay money it owed to Prism Construction.
Government officials confirmed the debt of 1.277bn shillings but said the funds would not be available until the 2026/2027 financial year.
Justice Ocaya accepted that the original payment plan had been based on a “mutual mistake” that the government money was imminent.
However, the judge imposed strict conditions on the 90-day extension. The companies must pay $78,000 of the remaining balance within 30 days, regardless of whether the government pays them.
If they fail to meet the new deadlines or file monthly management accounts as requested, the injunction will lapse and the bank will be free to sell the properties.
A further hearing to monitor the progress of the payments has been scheduled for 19 January.
