Busenvi Enterprises Limited v Luweero District Local Government and Another (Civil Appeal No. 40 of 2022)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that a judgment debtor has locus standi to challenge garnishee proceedings on grounds of illegality even where not an active party to the garnishee application. Failure to seal affidavit annexures is not fatal where Rule 8 of the Commissioner for Oaths Act is directory and authenticity is not challenged. Execution against government funds requires compliance with the Government Proceedings Act s.19(4); garnishee proceedings cannot attach funds from the consolidated fund without proof that the debt is covered in the government budget for that financial year. Appeal dismissed.
Outcome
Garnishee nisi remains lifted; Appellant must pursue alternative means of execution compliant with Government Proceedings Act
Facts
In September 2016, the Uganda Institution of Professional Engineers issued an arbitral award in the Appellant's favour directing the Respondent to pay UGX 216,656,315 plus costs and 26% interest. The award was recognised as a court decree on 25 March 2022. The Appellant filed Miscellaneous Application No. 642 of 2022 for attachment of the Respondent's account. On 29 June 2022, court issued a garnishee nisi against Stanbic Bank freezing the Respondent's account. The Respondent filed Miscellaneous Application No. 940 of 2022 seeking to set aside the garnishee nisi. The Registrar allowed the application, finding that the garnishee proceedings were illegal as the attached money was from the consolidated fund and that execution proceedings were premature. The Appellant appealed seeking to set aside the Registrar's ruling and make the garnishee nisi absolute.
Issues
- Whether the Respondent had locus standi to file Miscellaneous Application No. 940 of 2022 arising from garnishee proceedings to which they were not an active party.
- Whether the failure to seal all annexures attached to the affidavit was curable under Article 126(2)(e) of the Constitution.
- Whether it was an illegality to attach the Respondent's funds held in the Garnishee Bank.
- Whether the learned Registrar occasioned a miscarriage of justice when she lifted the garnishee nisi.
- Whether it is in the interest of justice that the appeal be allowed to enable the Appellant to receive a long-delayed judgment payment.
Orders
- Appeal dismissed.
- Ruling and orders of the Registrar upheld.
- Costs of the appeal awarded to the Respondent.
Rules and key headnotes
Legislation cited (6)
- Civil Procedure Act Cap 71 s.67(a)
- Civil Procedure Act Cap 71 s.98
- Civil Procedure Rules S.I 71-1 Order 50 Rule 8
- Government Proceedings Act Cap 77 s.19(4)
- Constitution of Uganda Article 126(2)(e)
- Commissioner for Oaths (Advocates) Act Cap 5 Rule 8
Cases cited (4)
- KCCA, DFCU & Stanbic Bank v Johnson Mugisha & 3 others (Miscellaneous Appeal No. 290 of 2012)
- Makula International Ltd v His Eminence Cardinal Nsubuga & Anor [1982] HCB 11
- Baryaija Julius v Kikwisire Zaverio & another (Court of Appeal Civil Application No. 324 of 2016)
- Combined Services Ltd v The Attorney General & Another (Miscellaneous Application No. 811 of 2021)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.