Wakilii

Kare Distribution Limited and Another v African RMRS Fund (Miscellaneous Application No 2399 of 2023)

High Court · [2024] UGCOMMC 421 · 2024 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for stay of proceedings of counterclaim and miscellaneous application pending determination of appeal
Decision
Application for stay of proceedings dismissed with costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

The Court dismissed the application for stay of proceedings. A stay of proceedings is a serious interruption to a party's right to conduct litigation and should not be imposed unless proceedings beyond all reasonable doubt ought not to continue. The applicants failed to demonstrate exceptional circumstances warranting a stay. Miscellaneous Application No. 2099 of 2023 had already been determined, rendering a stay overtaken by events. The counterclaim hearing had concluded and was pending judgment, which cannot be stayed. The applicants failed to show how determining the counterclaim would render their appeal nugatory.

Outcome

Application for stay of proceedings dismissed with costs

Facts

The applicants filed Civil Suit No. 700 of 2019 against the respondent. The suit was struck out leaving the respondent's counterclaim standing. Dissatisfied with this ruling, the applicants filed Civil Appeal No. 444 of 2022 to the Court of Appeal. The applicants then filed a miscellaneous application seeking to amend their defence to the counterclaim and stay execution of their properties, which was dismissed. The applicants filed Miscellaneous Application No. 2099 of 2023 seeking leave to appeal, which was also dismissed on 7 November 2023. The counterclaim was heard on 30 October 2023. The applicant sought an adjournment which was denied and left court. The respondent led their witness and the court set timelines for filing submissions. The counterclaim was pending judgment. The applicants then filed this application seeking to stay proceedings of the counterclaim and Miscellaneous Application No. 2099 of 2023 pending determination of Civil Appeal No. 444 of 2022.

Issues

  1. Whether the Court should issue an order staying proceedings of Miscellaneous Application No. 2099 of 2023 and the counterclaim in Civil Suit No. 700 of 2019 pending the determination of Civil Appeal No. 444 of 2022.

Orders

  • Application dismissed.
  • Costs awarded to the Respondent.

Rules and key headnotes

Stay of Proceedings — Test for Granting Stay
A stay of proceedings is a serious and fundamental interruption in the right that a party has to conduct litigation on the substantive merits of the case, and therefore a stay should not be imposed unless the proceedings beyond all reasonable doubt ought not to be allowed to continue.
Stay of Proceedings — Burden on Applicant — Exceptional Circumstances
In applications for stay of proceedings which are aimed at stopping a party from being heard, there is a higher test of scrutiny and the court's power to stay proceedings is discretionary and would be exercised only in exceptional circumstances. The applicant must demonstrate that exceptional circumstances exist to warrant the issuance of a stay order.
Stay of Proceedings — Application Overtaken by Events
Where an application for stay of proceedings seeks to stay a miscellaneous application that has already been heard and determined by the court, the application for stay is overtaken by events and amounts to an abuse of court process.
Stay of Proceedings — Delivery of Judgment Cannot Be Stayed
Where proceedings have already been concluded and the matter is pending judgment, there is nothing that can be stayed. A judgment is a well-reasoned decision arising out of a proceeding and delivering a judgment cannot be stayed.
Stay of Proceedings — Failure to Demonstrate Prejudice
An applicant seeking a stay of proceedings pending an appeal must demonstrate how, unless a stay is granted, the instituted appeal's success would be rendered nugatory. Failure to discharge this onus is fatal to the application.
Counterclaim — Independence of Counterclaim from Main Suit
A counterclaim is an independent suit on its own. An appeal arising from the striking out of a plaint does not automatically affect proceedings in the counterclaim, which can proceed independently.

Legislation cited (5)

Cases cited (7)

  • Ketti Nankanja v Yafesi Wamala and 2 Others (Miscellaneous Application No. 001 of 2017)
  • Ayisa Namiro v Uganda Marines Products Ltd (Miscellaneous Application No. 78 of 2015)
  • Bivac International SA (Bureau Veritas) [2006] 1 EA 26
  • Commodity Export International and Anor v MKM Trading Company Ltd and Anor
  • Joseph Eryau v The Environmental Action Network Court (Civil Appeal No. 98 of 2005)
  • DFCU Ltd v Begmohamed Ltd (Civil Appeal No. 65 of 2005)
  • Commodity Export International and Another v MKM Trading Company Ltd and Another (Civil Appeal No. 96 of 2005)

Full judgment

↓ Download PDF

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

Kare Distribution Limited and Another v African RMRS Fund (Miscellaneous Application No 2399 of 2023) [2024] UGCommC 421 (12 January 2024)
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.