Wakilii

DFCU Bank Limited v Ann Persis Nakate Lussejjere (Misc.App.No.78 Of 2003) (Misc.App.No.78 of 2003)

High Court · [2003] UGHC 91 · 2003 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for stay of execution of judgment arising from Civil Suit No. 242 of 2002
Decision
Application dismissed; order discharging mortgage and for return of title deeds to remain in effect

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that an application for stay of execution requires the applicant to show good cause and special circumstances. Merely lodging an appeal is insufficient. The applicant failed to prove that the respondent would be unable to pay the alleged debt if the appeal succeeded, and did not contradict evidence that continued retention of the title would harm the respondent's ability to secure tenants. Application dismissed with costs.

Outcome

Application dismissed; order discharging mortgage and for return of title deeds to remain in effect

Facts

The respondent mortgaged property at Ntinda to Gold Trust Bank Ltd to secure a loan for a third party (A.V. Enterprises) up to UGX 80 million. The bank was later sold to the applicant DFCU Bank. When the applicant sought to exercise a right of sale under the mortgage, the respondent filed Civil Suit No. 242 of 2002, contending the applicant had no evidence that money was disbursed to A.V. Enterprises. The High Court decided in favour of the respondent, ordering discharge of the mortgage and return of title deeds. The applicant appealed and applied for stay of execution of that order, claiming UGX 35 million remained owing. The respondent opposed, stating continued retention of the title would harm her ability to secure tenants for the property.

Issues

  1. Whether the applicant demonstrated good cause and special circumstances to justify a stay of execution of the order discharging the mortgage and returning the title deeds.

Orders

  • Application for stay of execution dismissed.
  • Costs awarded to the respondent.

Rules and key headnotes

Civil Procedure — Stay of Execution — Requirements for Grant
A stay of execution should be granted only where the court is satisfied that there is good cause and special circumstances to justify it.
Civil Procedure — Stay of Execution — Lodging an Appeal Alone Insufficient
The mere fact that an applicant has lodged an appeal against a decision is insufficient to ground an order for stay of execution; the applicant must demonstrate good cause and special circumstances beyond the existence of an appeal.
Civil Procedure — Stay of Execution — Proof of Inability to Recover
An applicant for stay of execution must prove that if the stay is refused and the appeal later succeeds, the respondent would be unable to satisfy any judgment debt, otherwise the application fails for want of good cause.

Legislation cited (3)

Cases cited (3)

  • Somali Democratic Republic v A.S. Treon (Civil Application No. 11 of 1988)
  • Nzanza v Kimani [1959] EA 69
  • Iddi Halfani v Hamisi Binti Althumani [1962] EA 761

Full judgment

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

DFCU Bank Limited v Ann Persis Nakate Lussejjere (Misc.App.No.78 Of 2003) (Misc.App.No.78 of 2003) [2003] UGHC 91 (24 March 2003)
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.