Court of Appeal suspends Shs 1.27bn debt order against Abid Alam

The Court of Appeal has intervened to suspend the enforcement of a High Court order that mandated Casements (Africa) Limited and businessman Abid Alam to remit over $338,000 (approximately Shs 1.27 billion) to the Chinese glass manufacturer Weihai Rongsheng Glasswork Co. Limited.

On August 28, 2026, Court of Appeal Justice Florence Nakachwa issued a ruling putting a hold on the decree's execution, following a challenge to the High Court's decision by Casements and Alam.

The petitioners contended that allowing the decree to be enforced before their planned appeal is heard would subject them to significant and irreversible damages, potentially making their appeal pointless.

The disagreement originates from three agreements signed in June 2022, where Weihai committed to supplying Casements Africa with 40 crates of clear glass, 140 crates of tinted glass, and 30 crates of laminated glass, totaling $338,800.52.

Weihai asserted that the glass was shipped from China and delivered to Casements' facility in the Kampala Industrial Area, but the company failed to settle the bill within the agreed 120-day payment period.

The Chinese firm subsequently initiated legal proceedings to recover the unpaid amount and secured a judgment in its favor. However, Casements and Alam claimed they were denied the opportunity to defend against the allegations due to errors and omissions by their previous legal counsel.

The applicants informed the court that upon receiving the legal documents in July 2025, they promptly instructed Karungi & Partners Advocates to file a request for permission to appear and contest the lawsuit.

The lawyers submitted this application to the High Court on August 20, 2025, with a hearing scheduled for August 25. According to the applicants, their former legal representatives did not attend this hearing nor did they inform their clients of these developments.

Consequently, the application was rejected, which then cleared the way for the default judgment to be entered.

Casements and Alam later engaged Muwema & Co. Advocates to petition for the default judgment to be set aside. They argued they had acted diligently by appointing lawyers and should not suffer the consequences of their advocates' mistakes.

The High Court dismissed that particular application in January 2026, which then led to the current planned appeal.

Weihai opposed the request for a stay, asserting that Casements and Alam had repeatedly acknowledged their debt and entered into payment arrangements, which they subsequently failed to honor.

The company further argued that the proposed appeal lacked substantial merit and that the applicants had not demonstrated that enforcing the monetary order would lead to irreparable harm.

Weihai informed the Court of Appeal that it had already initiated collection procedures, which included seeking to seize Alam's shares in Casements, obtaining garnishee orders against the company's bank accounts, and requesting Alam's arrest and committal to civil prison.

However, Justice Nakachwa determined that the applicants had fulfilled the legal criteria necessary for a stay of execution. She highlighted that at this stage of a stay application, a petitioner is not required to demonstrate the eventual success of their appeal, but merely to show that it presents reasonable and arguable legal questions.

The judge concluded that the applicants had raised debatable issues, including whether the dismissal of their application was due to their former lawyers' errors or their own procrastination.

She also found that the intended appeal brought into question whether the default judgment had been correctly entered in compliance with legal procedures.

Regarding the issue of irreversible damage, Justice Nakachwa determined that the ongoing execution proceedings posed a specific danger, as they could potentially result in Alam's apprehension and incarceration.