Wakilii

Joseph Ouma and Summit High School v Martin Muranga (Civil Suit No.759 of 2017; Misc. App. No.533 2021; Miscellaneous Application 1007 of 2022)

High Court · [2023] UGCOMMC 298 · 2023 Application Granted (Conditional) AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for stay of execution pending appeal, arising from judgment in Civil Suit No. 759 of 2017
Decision
Application for stay of execution granted on condition that applicants furnish security by depositing 30% of taxed costs within 45 days

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that stay of execution pending appeal is granted where the applicant demonstrates substantial loss, files without unreasonable delay, and furnishes security. Applicants satisfied the test for substantial loss as execution would affect the school's operations and third parties. Application filed one month after Notice of Appeal was not unreasonably delayed. Security for due performance required as mandatory condition. Stay granted conditional upon applicants depositing 30% of taxed costs within 45 days.

Outcome

Application for stay of execution granted on condition that applicants furnish security by depositing 30% of taxed costs within 45 days

Facts

The 1st applicant Joseph Ouma and the 2nd applicant Summit High School applied for stay of execution of a judgment delivered on 8 September 2021 in Civil Suit No. 759 of 2017. That suit arose from an undertaking wherein Joseph Ouma agreed to buy out the respondent Martin Muranga's 37% stake in the school, which obligation he failed to meet. Judgment was entered in the respondent's favour awarding special damages of UGX 155,000,000, general damages of UGX 10,000,000, interest at 17% per annum from 2017, an order for sale of the school and division of proceeds, and severance of interests in the land. The applicants became aware of the judgment in May 2022 after the time for appeal had lapsed. They filed a Notice of Appeal on 8 June 2022 and filed Misc. App. No. 583 of 2022 in the Court of Appeal seeking leave to file out of time. The respondent extracted a decree, taxed costs, and served a notice to show cause why execution should not issue. The applicants sought stay pending appeal, arguing that execution would cause substantial loss to the school, parents, students, and staff.

Issues

  1. Whether the execution of the judgment and decree in Civil Suit No. 759 of 2017 should be stayed pending appeal.

Orders

  • Stay of execution of the judgment and decree in Civil Suit No. 759 of 2017 pending appeal is granted.
  • Stay is conditional upon the applicants furnishing security for costs by depositing 30% of the taxed costs (UGX 20,926,900) within 45 days from the date of this ruling.
  • No order as to costs.

Rules and key headnotes

Stay of Execution — Requirements under Order 43 Rule 4
An appeal does not operate as an automatic stay of execution. Under Order 43 Rule 4 of the Civil Procedure Rules, the High Court may stay execution upon sufficient cause being shown, and no order of stay shall be made unless the court is satisfied that substantial loss may result to the applicant, the application is made without unreasonable delay, or security has been given for due performance of the decree.
Stay of Execution — Substantial Loss
The phrase 'substantial loss' does not represent any particular amount or size and cannot be qualified by any mathematical formula. It refers to any loss, great or small, of real worth or value as distinguished from a loss that is merely nominal. Substantial loss is established where execution would cause financial loss and inconvenience not only to the applicant but also to third parties.
Stay of Execution — Unreasonable Delay
For purposes of determining unreasonable delay in an application for stay of execution, time is calculated from the lodgement of the Notice of Appeal, not from the date of judgment. An intended appellant who has filed a Notice of Appeal should be able to apply for stay as soon as possible and not have to wait until the appeal is lodged, given the long delay in obtaining proceedings may cause irreparable loss during execution.
Stay of Execution — Security for Due Performance
Under Order 43 Rule 4(3)(c) of the Civil Procedure Rules, security for due performance of the decree is a mandatory requirement for stay of execution. An application for stay must be accompanied by payment of security for costs or willingness to furnish the same. Courts may grant a conditional stay subject to depositing security, and every application should be handled on its merits according to the circumstances of the case.

Legislation cited (9)

Cases cited (6)

  • Ujagar Singh v Runda Coffee Estates Ltd (1966) EA 263
  • Sewankambo Dickson v Ziwa Abby (HCMA No. 0178 of 2005)
  • Tropical Commodities Supplies Ltd and 2 Others v International Credit Bank Ltd (In Liquidation) (2004) 2 EA 331
  • Pan African Insurance Co. Ltd v International Transport Association (HCMA No. 86 of 2006)
  • John Baptist Kawanga v Namyalo Kevina and Others (Miscellaneous Application No. 12 of 2017)
  • Lawrence Musiitwa Kyazze v Eunice Busingye (SCCA No. 18 of 1990)

Full judgment

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

Joseph Ouma and Summit High School v Martin Muranga (Civil Suit No.759 of 2017; Misc. App. No.533 2021; Miscellaneous Application 1007 of 2022) [2023] UGCommC 298 (7 February 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.