Wakilii

Gidani International Uganda Ltd v Global P.S Lotto Investments Company Ltd and Another (Miscellaneous Application No. 823 of 2015)

High Court · [2016] UGCOMMC 312 · 2016 Application Struck Out AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for stay of proceedings pending determination of intended appeal against an interlocutory ruling dismissing a preliminary objection to jurisdiction
Decision
Application struck out; applicant directed to proceed with pending application for leave to appear and defend in the underlying summary suit

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court struck out an application for stay of proceedings where the applicant sought to stay proceedings pending appeal against an interlocutory ruling on jurisdiction. The court held that where leave is required to appeal an interlocutory order and such leave is not obtained, the appeal filed is incompetent and the stay application founded on that incompetent appeal is a nullity. Procedural rules requiring leave to appeal must be complied with.

Outcome

Application struck out; applicant directed to proceed with pending application for leave to appear and defend in the underlying summary suit

Facts

The applicant and first respondent executed a share purchase agreement in April 2012 containing an exclusive jurisdiction clause in favour of UAE courts. The respondents filed a summary suit in Uganda claiming USD 900,000. The applicant filed Miscellaneous Application 448 of 2014 challenging the High Court's jurisdiction, which was dismissed on 19 June 2015. The applicant filed a notice of appeal on 2 July 2015 and requested typed proceedings, but did not apply for leave to appeal as required for interlocutory orders. The applicant then filed this application seeking stay of proceedings pending the intended appeal. The respondents opposed the application on the ground that no leave to appeal had been obtained, making the intended appeal incompetent.

Issues

  1. Whether the application for stay of proceedings pending determination of an appeal against the ruling in Miscellaneous Application 448 of 2014 has merit.
  2. Whether the applicant complied with the procedural requirement to seek leave to appeal an interlocutory order before filing a notice of appeal.

Orders

  • Application for stay of proceedings struck out.
  • Costs awarded to the respondent.
  • Applicant directed to proceed to argue its application for leave to appear and defend the main suit.

Rules and key headnotes

Civil Procedure — Appeals — Leave to Appeal — Interlocutory Orders — Effect of Failure to Obtain Leave
Where leave is required to file an appeal against an interlocutory order and such leave is not obtained, the appeal filed is incompetent and cannot even be withdrawn; it must be struck out.
Civil Procedure — Stay of Proceedings — Application Based on Incompetent Appeal
An application for stay of proceedings pending appeal that is dependent on a non-existent incompetent appeal is rendered a nullity and must be struck out.
Civil Procedure — Appeals — Leave to Appeal — Time Limits — Procedure under Court of Appeal Rules
Under Rule 40 of the Court of Appeal Rules, where an appeal lies with leave of the High Court, application for leave must be made informally at the time the decision is given or by notice of motion within fourteen days of the decision. If the High Court refuses leave, application must be made to the Court of Appeal within fourteen days after refusal.
Civil Procedure — Interlocutory Orders — Appeal Against Ruling on Jurisdiction — Whether Leave Required
An order made in regard to a dispute as to jurisdiction under Order 9 Rule 3 of the Civil Procedure Rules is not appealable as of right under Order 44 Rules 1(2), (3) and (4). Leave of court must first be obtained before an appeal can be lodged.
Civil Procedure — Appeals — Interlocutory Decisions — Timing of Appeal
An appeal arising from an interlocutory decision can be made part of the appeal at the conclusion of the main suit. It is not necessary to appeal against an interlocutory ruling separately from the final decision, as holding otherwise might lead to a multiplicity of appeals upon orders made in the course of a hearing.
Civil Procedure — Stay of Proceedings — Principles Governing Grant
An order for stay of proceedings is made very sparingly and in exceptional circumstances. The court should be mindful of the backlog in the High Court. Interlocutory decisions can be made grounds of appeal after disposal of the main suit.
Civil Procedure — Rules of Procedure — Mandatory Compliance
Rules of procedure must be complied with. An application for leave to appeal is not merely a procedural matter but an essential step envisaged by the law.

Legislation cited (8)

Cases cited (8)

  • Commodity Export International & Another v MKM Trading Co Ltd & Another (Court of Appeal Civil Application No. 96 of 2005)
  • Sanyu Lwanga Musoke v Sam Galiwango (Supreme Court Civil Appeal No. 48 of 1995)
  • DFCU Ltd v Begmohamed Ltd (Court of Appeal No. 65 of 2005)
  • Makhangu v Kibwana [1995-1998] 1 EA 175
  • Dr Sheikh Ahmed Mohammed Kisuule v Greenland Bank (In Liquidation) (Supreme Court Civil Appeal No. 11 of 2010)
  • Matovu Sarah & Others v Abacus Pharmacy (Africa) Ltd (Court of Appeal No. 11 of 2012)
  • Utex Industries Ltd v Attorney General (Supreme Court Civil Appeal No. 52 of 1995)
  • Kasirye Byaruhanga and Co Advocates v Uganda Development Bank (Supreme Court Civil Appeal No. 2 of 1997)

Full judgment

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

Gidani International Uganda Ltd v Global P.S Lotto Investments Company Ltd and Another (Miscellaneous Application No. 823 of 2015) [2016] UGCommC 312 (13 July 2016)
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.