KAMPALA, Uganda — The Court of Appeal has ordered Universal Multipurpose Enterprises Ltd. to surrender land titles for two condominium units as a condition for staying execution in a property dispute involving Chinese investor Xue Wen Jun. The dispute centers on a 362 million Ugandan shillings (about $96,000) property agreement.
The case stems from a 2022 agreement in which Xue paid Universal Multipurpose Enterprises 362 million shillings for a condominium unit in Kampala. Xue alleged the developer failed to deliver the property or refund the money, leading her to sue for breach of contract.
In May 2025, the High Court ruled in Xue’s favor, awarding her a refund of the purchase price, along with damages and legal costs, totaling 363,235,000 shillings (about $96,500).
To enforce the judgment, Xue initiated execution proceedings, resulting in a garnishee order that froze eight bank accounts belonging to Universal Multipurpose Enterprises. The company appealed and sought a stay of execution, arguing that the account freeze had crippled its business operations and would render its appeal futile if funds were released before a final decision.
In a ruling delivered July 16, 2025, Justice Musa Ssekaana granted a conditional stay of execution. He directed the company to deposit two land titles — for Units 83 and 66, Blocks 246 and 245 — with the Court of Appeal Registrar.
Justice Ssekaana stated the titles, valued at more than 500 million shillings (about $133,000), would serve as security for the full judgment amount.
“The Garnishee Orders on Diamond Trust Bank accounts shall only be lifted upon the applicant producing the two certificates of title to the Registrar,” Justice Ssekaana ruled. He added that lifting the freeze on all accounts while retaining security would allow the company to resume operations without jeopardizing Xue’s judgment.
The developer argued that it employs more than 200 workers and was unable to pay staff or suppliers due to the frozen accounts. The company also expressed concern that releasing funds to Xue, a foreign national with no known assets in Uganda, could make recovery difficult if its appeal succeeds.
Xue, through her lawyers, accused the company of acting in bad faith and using delaying tactics. She stated that the property purchase was part of her relocation and investment in Uganda, and that she and her family have been forced to pay $7,000 per month in rent since the developer failed to deliver the unit.
While the judge acknowledged the hardship faced by Xue, he noted that the value held in the frozen bank accounts — more than 611 million shillings (about $162,000) — exceeded the judgment sum and provided sufficient cover for her interests.
The stay will remain in place pending the full hearing and determination of the appeal. Costs related to the application were deferred for determination after the appeal.
