Wakilii

BSK International School Ltd v Katungye (Miscellaneous Application No. 131 of 2018)

High Court · [2018] UGCOMMC 42 · 2018 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for stay of execution of ruling ordering security for performance of arbitral award
Decision
Application for stay of execution dismissed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court dismissed the application for stay of execution. Held that when the High Court exercises powers under section 34(5) of the Arbitration and Conciliation Act to order security for performance of an arbitral award, it is not exercising original jurisdiction, and therefore no appeal lies as of right. Further held that the applicant failed to satisfy the conditions for stay of execution by not providing the security ordered by the court within 30 days, which constituted contempt of court and breach of a court order.

Outcome

Application for stay of execution dismissed

Facts

The respondent obtained an arbitral award against the applicant for UGX 946,419,339 relating to construction of a swimming pool. The applicant applied to set aside the award under section 34(1) of the Arbitration and Conciliation Act. The respondent applied for security for performance of the award under section 34(5), which was granted by the court, ordering the applicant to deposit security within 30 days. The applicant did not make the deposit but instead filed a notice of appeal against the ruling and applied for stay of execution of that ruling. The Registrar dismissed an earlier interim stay application. The applicant then brought this application seeking stay of execution and stay of proceedings pending appeal.

Issues

  1. Whether the applicant had a right of appeal as of right against the ruling ordering security for performance of an arbitral award.
  2. Whether the court should grant a stay of execution of the ruling ordering security for performance pending appeal.
  3. Whether the applicant satisfied the conditions for stay of execution, particularly the requirement to provide security.

Orders

  • Application dismissed with costs.

Rules and key headnotes

Arbitration — Challenge to Award — Security for Performance — Right of Appeal
When the High Court exercises powers under section 34(5) of the Arbitration and Conciliation Act to order security for performance of an arbitral award in furtherance of a challenge to that award under section 34(1), the court is not exercising original jurisdiction, and therefore no appeal lies as of right from such an order.
Arbitration — Interlocutory Applications — Rights on Appeal
An interlocutory application arising under section 34(5) of the Arbitration and Conciliation Act cannot give greater rights in law than the main application under section 34(1) from which it derives.
Stay of Execution — Conditions for Grant — Provision of Security
Before a court grants a stay of execution, the applicant must satisfy three conditions: substantial loss may result if no stay is granted; the application has been made without unreasonable delay; and security has been given by the applicant for due performance of the decree or order as may ultimately be binding on the applicant.
Contempt of Court — Breach of Court Orders — Effect on Applications
A court order must be obeyed as ordered unless set aside or varied. A deliberate breach of a court order constitutes contempt and the court cannot condone such conduct. An applicant in breach of a court order cannot successfully seek equitable relief from the same court.

Legislation cited (4)

Cases cited (2)

  • Babcon Uganda Ltd v Mbale Resort Ltd (Civil Appeal No. 6 of 2016)
  • Amrit Goyal v Harichand Goyal & 3 Others (Civil Application No. 109 of 2004)

Full judgment

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

BSK International School Ltd v Katungye (Miscellaneous Application No. 131 of 2018) [2018] UGCommC 42 (29 June 2018)
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.