Court of Appeal Halts Bank of Baroda Asset Sale, Granting Shumuk Industries Vital Shield to Pursue Substantive Appeal

KAMPALA, UGANDA — Shumuk Aluminium Industries Limited and prominent businessman Mukesh Shukla have secured a critical legal victory as the Court of Appeal officially blocked Bank of Baroda (Uganda) Limited from liquidating or transferring the company’s prime properties, including its main manufacturing facility.

The ruling, delivered by Justice of Appeal Esta Nambayo, grants a conditional stay of execution that restrains the bank, its employees, and its agents from disposing of Plot 24, Mukabya Road, Kampala, and Plot M700 at the UMA Lugogo Showground. The temporary injunction remains in effect pending the full determination of Civil Appeal No. 398 of 2026, protecting Shumuk's operations and worker livelihoods from premature enforcement actions.

Recognizing that the upcoming appeal raises fundamental legal issues regarding the bank's foreign currency conversions, disputed interest calculations, and a lack of proper loan account reconciliation, the Court agreed that protecting the assets is essential to prevent irreparable harm.

"We are highly encouraged by the Court of Appeal's decision to preserve our factory premises and properties while the merits of our case are fully scrutinized," said Mukesh Shukla. "Our primary focus has always been ensuring a fair, transparent, and accurate reconciliation of our credit facilities. Prematurely selling these assets would have caused unjustified disruptions to our manufacturing capacity and threatened the jobs of our dedicated workers."

In a notable recognition of the overlapping nature of the claims, Justice Nambayo explicitly threw out any attempt to duplicate security demands against Mukesh Shukla’s personal guarantee, noting it stems from the exact same underlying corporate debt. To maintain this legal shield throughout the appeal process, the Court directed Shumuk to deposit a balanced 30% interim equity amount (Shs4.8 billion and US$36,870.02) within 30 days—a condition the company is fully prepared to navigate to ensure justice prevails in the substantive appeal.

Shumuk Aluminium Industries Limited remains steadfastly committed to working through its legal counsel, Anthony Oloka and Ukasha Sekajja, to systematically dismantle the High Court’s initial findings and achieve an equitable resolution for all stakeholders involved.

 Shumuk Aluminium Industries Limited

Shumuk Aluminium Industries Limited is a leading manufacturing entity in Uganda, dedicated to economic development, employment creation, and providing high-quality aluminum products across East Africa.