Atabya Agencies Ltd v Stanbic Bank (U) Ltd (Miscellaneous Application 109 of 2004)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court granted leave to appeal and stay of execution on condition that Stanbic Bank deposit a bank draft for UGX 1,001,742,124 with the Registrar within 48 hours. The court applied the test from Sango Bay Estates Ltd v Dresdner Bank A.G. that leave will normally be granted where prima facie there are grounds meriting serious judicial consideration. Despite concerns about the bank's willingness to fulfill its guarantee obligations, the court balanced interests by granting relief subject to security.
Outcome
Leave to appeal and stay of execution granted subject to security being furnished within 48 hours
Facts
Following an earlier ruling in favour of Atabya Agencies Ltd, Stanbic Bank (U) Ltd made an informal application for leave to appeal and stay of execution. The respondent bank had previously failed to furnish bank draft security at the Court of Appeal. Counsel for Stanbic Bank argued that the bank was prejudiced because it was declared not a party to an earlier appeal, and that by virtue of a Court of Appeal ruling, Uganda Commercial Bank Limited did not appeal hence there could not have been a proper demand under the guarantee. Counsel submitted that the amounts involved were large. The applicant initially did not offer security but later conceded to providing another guarantee, though counsel appeared not to have firm instructions on its nature. Counsel for Atabya Agencies argued that no serious grounds for appeal had been advanced and that the application was a delaying tactic.
Issues
- Whether leave to appeal should be granted on the grounds that there are prima facie grounds of appeal which merit serious judicial consideration.
- Whether execution of the earlier ruling should be stayed pending appeal.
Orders
- Leave to appeal granted.
- Stay of execution granted on condition that Stanbic Bank (U) Ltd deposit with the Registrar of the Court a bank draft for UGX 1,001,742,124 within 48 hours from 18th May 2004.
- The bank draft must be in favour of Atabya Agencies Ltd.
Rules and key headnotes
Cases cited (3)
- Yunis Busingye vs Kyazze (a Supreme Court decision)
- G.M. Combined (U) Ltd v A.K. Detergents (U) Ltd (Civil Application No. 23 of 1994)
- Sango Bay Estates Ltd v Dresdner Bank A.G. [1971] EA 17
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.