Busoga Forestry Co. Limited v Batabane Anatole (Civil Application No. 534 of 2026)

The full judgment

Read the complete, verbatim text of this judgment.

Holding

A single Justice of the Court of Appeal granted the applicant employer a stay of execution pending its appeal against an Industrial Court constructive-dismissal award. The Court held it has concurrent jurisdiction under Rule 6(2)(b) and may, under Rule 42(2), entertain such an application to safeguard the right of appeal. The application was not barred by res judicata because the Industrial Court's earlier stay had been vacated. The appeal raised arguable issues of law; paying the substantial decretal sum to an unemployed and indebted respondent unlikely to refund it would cause irreparable loss and render the appeal nugatory; the balance of convenience and absence of delay favoured the applicant. The stay was granted on condition of a bank guarantee.

Facts

The respondent had been employed by the applicant company since January 2011, working as Chief Accountant in the Finance Department. Following a 2020 restructuring of that department, the respondent filed a claim before the Industrial Court (Labour Dispute Reference No. 015 of 2021) alleging constructive dismissal. The Industrial Court found constructive dismissal and awarded acting allowance, severance allowance, payment in lieu of notice and general damages, totalling a principal sum of about UGX 268,480,667 with interest at 15% per annum. The applicant filed a notice of appeal and lodged Civil Appeal No. 187 of 2022, and obtained a conditional stay of execution in Miscellaneous Application No. 008 of 2021 requiring it to maintain a bank guarantee for the decretal sum, which it did through successive guarantees. When renewal of the guarantee was delayed in 2025, the respondent commenced garnishee proceedings. After the Registrar accepted a fresh guarantee and vacated a garnishee order nisi, the Industrial Court, in Miscellaneous Application No. 149 of 2025, set aside that decision and ordered the garnishee made absolute, effectively vacating the stay. The applicant then applied to the Court of Appeal for a fresh stay of execution.

Issues

1. Whether the application for stay of execution is barred by Rule 42 of the Judicature (Court of Appeal) Rules for not first being made to the lower court.
2. Whether the application is barred by res judicata under section 7 of the Civil Procedure Act.
3. Whether the applicant established a prima facie case of its right to appeal or a likelihood of success.
4. Whether the applicant would suffer irreparable damage or have its appeal rendered nugatory if a stay is not granted.
5. Where the balance of convenience lies as between the parties.
6. Whether the application was instituted without delay.
7. Whether the applicant should be required to provide security for due performance of the decree.

Orders

• The applicant shall provide a bank guarantee in a reputable bank satisfactory to the respondent as security for due performance for the whole decretal amount together with accruing interest until the determination of the appeal.
• Costs of the application shall abide the outcome of the appeal.

Key headnotes

Legislation cited (11)

• Judicature Act Cap. 16 s.37
• Civil Procedure Act Cap 282 s.98
• Civil Procedure Act Cap 282 s.7
• Judicature (Court of Appeal) Rules SI 13-10 r.2(2)
• Judicature (Court of Appeal) Rules SI 13-10 r.6(2)(b)
• Judicature (Court of Appeal) Rules SI 13-10 r.42(1)
• Judicature (Court of Appeal) Rules SI 13-10 r.42(2)
• Judicature (Court of Appeal) Rules SI 13-10 r.43(1)
• Judicature (Court of Appeal) Rules SI 13-10 r.43(2)
• Judicature (Court of Appeal) Rules SI 13-10 r.44(1)
• Employment Act s.65(1)(c)

Cases cited (21)

• Sekamwa Livingstone v Kimmira Muhammad (Civil Application No. 1206 of 2023)
• Damalie Namakula Bisobye v Byakusaaga Bisobye Ssebulime Kyeyune Bikosojo and Another (Miscellaneous Application No. 548 of 2025)
• William Kaija and Others v Kasoya Justine and Another (Civil Application No. 563 of 2024)
• Businge Provia and Others v Shedrack Yaboneka (Civil Miscellaneous Application No. 598 of 2025)
• Hanna Enterprises (U) Ltd & Anor v Diamond Trust Bank (U) Ltd & Anor (Civil Application No. 1271 of 2023)
• P.K Sengendo v Busulwa Lawrence and Male Abdu (Civil Application No. 207 of 2014)
• Ganatra v Ganatra [2007] 1 EA 76
• Karia and Another v Attorney General and Others [2005] 1 EA 83
• American Cyanamid Co v Ethicon Ltd [1975] AC 396
• China Communication Construction Company Ltd v Justus Kyahabwa (Miscellaneous Application No. 629 of 2019)
• Sewankambo Dickson v Zzura Abby (HCT-00-CC-MA-178-2005)
• Halii Ali Cheboi v Kiroko Mesulamu (Civil Application No. 105 of 2014)
• Aids Health Foundation v Dr. Stephen Mirembe Kizito (Civil Application No. 147 of 2014)
• Luweero Samuel and Another v Housing Finance Bank Ltd and Another (Miscellaneous Application No. 681 of 2022)
• Margaret Kato and Anor v Nuulu Nalwoga (Civil Miscellaneous Application No. 11 of 2011) [2013] UGSC 15
• John Baptist Kawanga v Namyalo Kevina and Semakula Laurence (HCMA No. 12 of 2017)
• MP Electronics Limited & Anor v Kamani & 2 Ors (Civil Application No. 0614 of 2024)
• Hon. Theodore Ssekikubo & Others v Attorney General and Another (Constitutional Application No. 06 of 2013)
• Edirisa Muyingo v Ismael Ssempija & Anor (Civil Application No. 291 of 2023)
• Uganda National Roads Authority v Okalang (Civil Application No. 86 of 2024)
• Beeline Travel Care (U) Limited & Another v Finance Trust Bank Limited (Civil Application No. 67 of 2023)