Afro Logistics Services Limited v Hussein (Civil Application 393 of 2024)

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

On an application to a single Justice for a stay of execution pending appeal, the court held it need not investigate the merits of the appeal, only that the appeal was not frivolous or vexatious. The court found the appeal raised arguable questions over ownership of the disputed plots, that damages are not usually sufficient compensation in land disputes, and that the applicant would suffer irreparable loss if the decretal land were alienated before the appeal was heard. Although security for due performance is not mandatory, the court, exercising its discretion to impose just terms under Rule 6(2)(b), granted the stay on condition the applicant deposit UGX 500,000,000 as security within 30 days.

Outcome

Application for stay of execution granted on condition that the applicant deposits UGX 500,000,000 as security for due performance within 30 days, failing which execution may proceed.

Facts

The applicant company claimed to have purchased land comprised in LRV 4148 Folio 23 Plot 55 Ismael Road, Mbuya, in 2010 and to have been registered as proprietor and in possession. At the instance of the respondent, the Commissioner for Land Registration summoned the applicant to produce the title for cancellation on allegations of forgery, prompting the applicant to sue in High Court Civil Suit No. 62 of 2011 for a permanent injunction. The suit was dismissed: the High Court declared the respondent the rightful owner of Plots 55 and 56, found the applicant was not a bona fide purchaser, declared the applicant's lease non-existent, ordered the applicant to give vacant possession of both plots, and ordered it to pay general damages of UGX 600,000,000 and costs. The applicant filed Civil Appeal No. 1406 of 2023 and, the High Court having declined a stay, applied to the Court of Appeal for a stay of execution. The respondent had obtained a notice of eviction with execution due to commence on 11th October 2024.

Issues

1. Whether the applicant admitted that it does not own or have any claim to or over Plot 56 Ismael Road at Mbuya.
2. Whether, in relation to Plot 55 Ismael Road at Mbuya, the applicant met the conditions for the grant of a stay of execution pending appeal from the High Court to the Court of Appeal.
3. What remedies the parties were entitled to.

Orders

• The applicant shall deposit in court UGX 500,000,000 as security for due performance within 30 days from 11th October 2024, failing which the respondent will be at liberty to execute the decree in Civil Suit No. 62 of 2011.
• Costs of the application will abide the outcome of Civil Appeal No. 1406 of 2023 pending hearing in this court.

Rules and key headnotes

Legislation cited (7)

• Judicature (Court of Appeal Rules) Directions SI 13-10 r.6(2)(b)
• Judicature (Court of Appeal Rules) Directions SI 13-10 r.2(2)
• Judicature (Court of Appeal Rules) Directions SI 13-10 r.42(1)
• Judicature (Court of Appeal Rules) Directions SI 13-10 r.42(2)
• Judicature (Court of Appeal Rules) Directions SI 13-10 r.43(1)
• Judicature (Court of Appeal Rules) Directions SI 13-10 r.75
• Judicature (Court of Appeal Rules) Directions SI 13-10 r.86(1)

Cases cited (6)

• Shiv Construction Co Ltd v Endesha Enterprises Ltd (Civil Application No. 34 of 1992)
• Margaret Kato v Nuulu Nalwoga (Civil Miscellaneous Application No. 11 of 2011)
• Lawrence Musiitwa Kyazze v Eunice Busingye (Supreme Court Civil Application No. 18 of 1990)
• Theodore Ssekikubo and Others v Attorney General and Another (Constitutional Application No. 6 of 2013)
• Kampala City Council v Donozio Musisi Sekyaya (Court of Appeal Civil Application No. 3 of 2000)
• National Enterprise Corporation v Mukisa Foods Ltd (Civil Application No. 7 of 1998)

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