Wakilii

Kenganzi v METL Uganda Ltd (Miscellaneous Application No. 2179 of 2015)

High Court · [2016] UGHCEBD 8 · 2016 Application Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for stay of execution of decree pending appeal, arising from Civil Suit No. 723 of 2014
Decision
Stay of execution granted on condition that security of UGX 50,000,000 be deposited within two weeks

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court granted stay of execution pending disposal of the application for leave to appeal before the Court of Appeal, exercising its discretion under section 32 of the Judicature Act. The court held that while it has discretion to impose security conditions under Order 43 rule 3(c) of the Civil Procedure Rules, mandating security for the entire decretal amount would stifle the right of appeal. Stay was granted on condition that the applicant deposit UGX 50,000,000 as security for due performance of the decree within two weeks.

Outcome

Stay of execution granted on condition that security of UGX 50,000,000 be deposited within two weeks

Facts

The applicant sought a stay of execution of the decree in Civil Suit No. 723 of 2014, which had awarded the respondent UGX 177,132,200. The applicant had filed an application for leave to appeal before the Court of Appeal, with the earliest hearing date scheduled for June 2016. The respondent did not oppose the stay application but requested that it be granted on condition that the applicant deposit security for due performance of the decree. The applicant argued that requiring full security would stifle the right of appeal and that the court had discretion under section 32 of the Judicature Act to grant the stay without requiring full security.

Issues

  1. Whether the application for stay of execution pending appeal should be granted.
  2. Whether the applicant should be required to deposit security for due performance of the decree and, if so, what amount.

Orders

  • Application for stay of execution allowed.
  • Applicant to deposit UGX 50,000,000 as security for due performance of the decree within two weeks from the date of this order.
  • Stay of execution granted pending disposal of the application for leave to appeal in the Court of Appeal.
  • Each party to bear its own costs.

Rules and key headnotes

Civil Procedure — Stay of Execution — Security for Due Performance of Decree
The court has wide discretion under section 32 of the Judicature Act to grant stay of execution pending appeal with or without requiring security for due performance of the decree, and the requirement and insistence on security for the entire decretal amount is likely to stifle appeals.
Civil Procedure — Stay of Execution — Discretion to Impose Terms and Conditions
The court has discretion under Order 43 rule 3(c) of the Civil Procedure Rules to impose or not to impose terms and conditions for stay of execution, taking into account principles established by decided cases, and may grant remedies absolutely or on such terms and conditions as it thinks just under section 33 of the Judicature Act.

Legislation cited (5)

Cases cited (2)

  • Lawrence Musiitwa Kyazze v Eunice Busingye (Supreme Court Civil Appeal No. 18 of 1990)
  • Tropical Commodities Suppliers vs. International Credit Bank

Full judgment

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

Kenganzi v METL Uganda Ltd (Miscellaneous Application No. 2179 of 2015) [2016] UGHCEBD 8 (29 April 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.