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Enterprise Electronic Commission v Sagewood Limited and Another (Miscellaneous Application No. 407 of 2018)

High Court · [2018] UGHCCD 258 · 2018 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for stay of implementation of Public Procurement and Disposal of Assets Appeals Tribunal decision pending appeal
Decision
Application dismissed; respondents permitted to continue with contract implementation pending appeal

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court dismissed an application for stay of implementation of a procurement tribunal decision pending appeal. The court found no status quo to preserve where the respondents had already executed the contract and commenced performance after the tribunal decision. The balance of convenience favoured the respondents who would suffer grave injustice if the partly performed contract were stopped.

Outcome

Application dismissed; respondents permitted to continue with contract implementation pending appeal

Facts

The applicant, an unsuccessful bidder in a procurement process for weather radar, appealed a decision of the Public Procurement and Disposal of Assets Appeals Tribunal dated 28 June 2018. The tribunal had upheld the procurement decision awarding the contract to the first respondent. On 2 July 2018, shortly after the tribunal decision, the respondents executed the contract. On 11 July 2018, the applicant sought a stay of implementation pending appeal. By the time of the application, the respondents had executed the contract, the first respondent had provided an advance payment guarantee of approximately UGX 2.8 billion, and performance had commenced. The contract was time-bound with an eight-month execution period from receipt of advance payment. The applicant filed and served the memorandum of appeal in mid to late July 2018.

Issues

  1. Whether the court should grant a stay of implementation of the Public Procurement and Disposal of Assets Appeals Tribunal decision pending disposal of the appeal.
  2. Whether the appeal would be rendered nugatory if the stay is not granted.
  3. Whether the balance of convenience favours granting the stay.

Orders

  • Application for stay dismissed.
  • No order as to costs.

Rules and key headnotes

Public Procurement — Appeals from Tribunal — Stay of Implementation Pending Appeal
Under section 91N of the Public Procurement and Disposal of Public Assets Act 2003, the High Court may grant a stay of implementation of a procurement tribunal decision pending appeal where appropriate to secure the effectiveness of the appeal proceedings, but the discretion must be exercised having regard to all circumstances including the risk of injustice and the balance of convenience.
Stay of Execution — Status Quo — Executed and Partly Performed Contracts
Where a contract has already been executed and performance has commenced, there is no status quo to preserve by way of stay, and the balance of convenience will generally favour allowing continued performance where stopping the contract would cause grave injustice and economic loss to the performing party.
Stay of Execution — Appeal Not Rendered Nugatory — Alternative Remedies
The fact that a contract has been executed and performed does not render an appeal nugatory where the court may still determine the merits of the appeal and make appropriate declaratory orders or award damages to compensate for any prejudice occasioned.

Legislation cited (8)

Cases cited (1)

  • FK Kiongo v VPN Mukubwa and Another (Court of Appeal Civil Application No. 63 of 1988)

Full judgment

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

Enterprise Electronic Commission v Sagewood Limited and Another (Miscellaneous Application No. 407 of 2018) [2018] UGHCCD 258 (20 August 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.