Wakilii

DFCU Bank v Balikudembe Market Stalls,Space and Lock Up Shops Owners Association Limited (Miscellaneous Application No. 1051 of 2021)

High Court · [2023] UGCOMMC 17 · 2023 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for enforcement of consent at execution arising from garnishee proceedings
Decision
Application for enforcement of consent at execution dismissed due to procedural impropriety

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that an application to enforce a consent at execution arising from a garnishee order nisi cannot succeed where no decree has been extracted and the garnishee order nisi has not been made absolute. A garnishee order nisi is not enforceable until made absolute. The Court cannot invoke its inherent powers under section 98 of the Civil Procedure Act where there is lack of propriety in the subject matter. Application dismissed; each party to bear own costs.

Outcome

Application for enforcement of consent at execution dismissed due to procedural impropriety

Facts

On 22 May 2015, DFCU Bank obtained a consent judgment against St. Balikuddembe Market Stalls Owners Association for UGX 3,660,355,492 payable within 90 days. The judgment debtor defaulted. DFCU Bank filed Miscellaneous Application No. 236 of 2020 to garnishee amounts owed to the judgment debtor by Kampala Capital City Authority under a separate civil suit. A garnishee order nisi was issued on 22 June 2020. On 10 August 2020, the parties entered a consent at execution agreeing that the judgment debtor and KCCA would pay the sums owed. The judgment debtor paid UGX 2,000,000,000 but defaulted on the balance of UGX 3,000,000,000. DFCU Bank then filed this application seeking enforcement of the consent at execution and re-attachment of amounts under the decree.

Issues

  1. Whether the Applicant has satisfied the grounds for the grant of the relief sought for?
  2. What remedies are available?

Orders

  • Application dismissed.
  • Each party to bear own costs.

Rules and key headnotes

Civil Procedure — Execution of Decrees — Requirement to Extract Decree Before Execution
Prior to execution, a decree must exist and be extracted, as it forms the subject for execution. The procedure of extracting a decree is core to the applicability of section 34 of the Civil Procedure Act.
Civil Procedure — Garnishee Proceedings — Enforceability of Garnishee Order Nisi
A garnishee order nisi is not enforceable until it is made absolute. A consent at execution entered into on the basis of a garnishee order nisi cannot be enforced where the order nisi has not been made absolute.
Civil Procedure — Inherent Powers of Court — Limits on Exercise Where Lack of Propriety
The Court cannot invoke its inherent powers under section 98 of the Civil Procedure Act where there is lack of propriety in the subject matter before it.

Legislation cited (5)

Cases cited (3)

  • China Henan International Cooperation Group Company Ltd v Justus Kyabahwa (Civil Application No. 101 of 2021)
  • Choice Investments Ltd v Jeromnimon (Midland Bank Ltd, garnishee) [1981] 1 All ER 225
  • Uganda Development Bank v Muganga Construction Co. Ltd [1981] HCB 35

Full judgment

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

DFCU Bank v Balikudembe Market Stalls,Space and Lock Up Shops Owners Association Limited (Miscellaneous Application No. 1051 of 2021) [2023] UGCommC 17 (30 March 2023)
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.