Allan Makula and Others v I-Engineering Uganda Limited (Miscellaneous Application No. 0191 of 2024)
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 of a consent decree pending determination of a bankruptcy petition. The court held that the applicant adopted the wrong procedure by seeking a stay before exhausting remedies available upon issuance of a notice to show cause why execution should not issue. The proper procedure was to seek an intermittent stay arising from the bankruptcy petition itself, or to raise sufficient cause when responding to the execution notice. Until an order of execution issues, the applicant cannot invoke the court's inherent powers and is not properly before court.
Outcome
Application for stay of execution dismissed; applicant advised to seek intermittent relief from bankruptcy petition or raise sufficient cause upon receipt of execution notice
Facts
The applicants executed a consent decree on 14 February 2022, endorsed by the High Court on 9 March 2022, wherein the 1st applicant agreed to bear liability for UGX 1,564,037,608 owed to the respondent, with claims against the 2nd, 3rd and 4th applicants withdrawn. The 1st applicant paid UGX 80,000,000 but was unable to pay the outstanding balance. He filed a bankruptcy petition (HCT-00-CV-IP-0006-2024) which remained pending. The respondent commenced execution proceedings and issued a notice to show cause why execution should not issue. The 1st applicant then brought this application seeking a stay of execution pending determination of his bankruptcy petition, citing inability to pay despite selling his belongings.
Issues
- Whether the applicant has disclosed any grounds to warrant a stay of execution.
Orders
- Application dismissed.
- Costs awarded to the respondent.
Rules and key headnotes
Legislation cited (5)
Cases cited (6)
- KCB Bank v Gichohi Ngari and 2 Others (Court of Appeal No. 0323 of 2023)
- National Union of Clerical Commercial Professionals and Technical Employees v The National Insurance Corporation (Supreme Court Civil Appeal No. 17 of 1993)
- Isam Fathalrahman salim and anor Vs Ms Gulf Commidities Ltd and 4 ors HMA 598 of 2012
- Lawrence Musiitwa Kyazze v Eunice Businge (Supreme Court Civil Appeal No. 18 of 1990)
- Andrew Kisawuzi Vs Dan Oundo Malingu HCMA No. 467 of 2013
- In the matter of a Petition for a receiving order by Maria K Mutesi Bankruptcy Petition No.5 of 2011
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.