Wakilii

Acam and 8 Others v Agama and Another (Miscellaneous Application 39 of 2024)

High Court · [2024] UGHC 688 · 2024 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for stay of execution arising from ex parte judgment in Civil Suit No. 015 of 2017, brought pending determination of Miscellaneous Application No. 30 of 2024 to set aside the ex parte judgment
Decision
Application for stay of execution dismissed; execution of the decree in Civil Suit No. 015 of 2017 to proceed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court dismissed an application for stay of execution where applicants sought to suspend enforcement of an ex parte judgment pending determination of an application to set aside that judgment. The court held that applicants failed to establish imminent threat of execution (given that execution had already commenced with partial payment by consent) and failed to prove substantial loss that could not be compensated monetarily. The application was found to be an afterthought filed after execution proceedings had already advanced.

Outcome

Application for stay of execution dismissed; execution of the decree in Civil Suit No. 015 of 2017 to proceed

Facts

Applicants were defendants in Civil Suit No. 015 of 2017 which proceeded ex parte and judgment was entered against them on 17 August 2022. A warrant of arrest in execution was issued on 13 May 2024. The first applicant was arrested and paid UGX 3,000,000 as partial payment of the decretal sum. Applicants filed Miscellaneous Application No. 30 of 2024 to set aside the ex parte judgment, and brought this application seeking stay of execution pending determination of that setting aside application. Applicants claimed they were never properly served with summons and did not participate in the proceedings. They had previously filed Miscellaneous Application No. 103 of 2022 to set aside the ex parte order but withdrew it after judgment was delivered. Respondents contended that applicants were properly served through their lawyers M/s Isodo and Co. Advocates who filed defence and participated throughout, and that the present application was an afterthought to frustrate execution after a payment schedule had been agreed by consent.

Issues

  1. Whether there is a proper case for grant of an order for a stay of execution?
  2. What are the remedies to the applicants in the circumstances?

Orders

  • Application dismissed.
  • Costs of this application awarded to the respondents to be paid by the applicants.

Rules and key headnotes

Stay of Execution — Grounds for Grant — Imminent Threat of Execution
For a stay of execution to be granted on grounds of imminent threat of execution, there must be established by evidence a serious and imminent threat of execution of the decree or order, and if the application is not granted, the main application shall be rendered nugatory. Where execution has already commenced and partial payment has been made, the object of staying execution cannot be fulfilled and the ground of imminent threat is not satisfied.
Stay of Execution — Substantial Loss — Standard of Proof
Substantial loss for purposes of stay of execution does not represent any particular size or amount but refers to any loss, great or small, that is of real worth or value as distinguished from a loss that is merely normal. The substantial loss must be proved with cogent evidence in order for the court to assess the impact and potential loss. Mere statements without supporting evidence that a party will suffer loss are insufficient, and the applicant must show that they will not be able to recover monies if they succeed.
Stay of Execution — Grounds — Preservation of Subject Matter
The purpose of a stay of execution is to preserve the subject matter in dispute. Where applicants have not met the grounds establishing imminent threat of execution and substantial loss, which would give effect to the purpose of preserving the subject matter, the court need not determine whether other grounds for stay have been met.
Stay of Execution — Lawful Decrees — Deprivation of Fruits
A decree or order passed by a competent court should be allowed to be executed unless a strong case is made out on cogent grounds that stay should be granted. A party who has obtained a lawful decree should not be deprived of the fruits of that decree except for good and cogent reasons. Otherwise, every judgment debtor would file an appeal as a way of stopping successful parties from enjoying the fruits of litigation.

Legislation cited (4)

Cases cited (7)

  • Umeme Limited v Nankabirwa (Miscellaneous Cause No. 154 of 2021)
  • Lawrence Musiitwa Kyazze v Eunice Busingye (Supreme Court Civil Application No. 18 of 1990)
  • Kyambogo University v Prof Isaiah Omolo Ndiege (Court of Appeal Civil Appeal No. 341 of 2013)
  • Uganda Revenue Authority v East African Holding Limited (Court of Appeal Civil Appeal No. 144 of 2014)
  • Eriab Kabigiza v Lawrence Sserwanja (1975) HCB 199
  • Tropical Commodities Supplies Ltd and Others v International Credit Bank Ltd (in liquidation) [2004] 2 EA 331
  • Mabu Commodities Limited v Sophie Nakitende (High Court Miscellaneous Application No. 530 of 2020)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Acam and 8 Others v Agama and Another (Miscellaneous Application 39 of 2024) [2024] UGHC 688 (12 July 2024)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.