Wakilii

Luyombo & 5 Others v Nankya & Another (Miscellaneous Application 666 of 2024)

High Court · [2024] UGHCLD 152 · 2024 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Interlocutory application for contempt of court arising from Civil Suit No. 381 of 2011
Decision
Application granted. Respondents declared in contempt, ordered to vacate land within 60 days, fined UGX 3,000,000, and the stay of execution vacated for non-compliance with security deposit condition.

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that respondents who continued to develop land subject to a permanent injunction, despite obtaining a stay of execution, were in contempt of court. The stay of execution did not authorise dealing with the suit land but only protected their interest pending appeal. The court further held that failure to comply with the condition of depositing security for due performance within the stipulated time automatically vacated the stay order. A bank draft forwarded to the Registrar without follow-up or proof of encashment did not constitute compliance with the deposit requirement.

Outcome

Application granted. Respondents declared in contempt, ordered to vacate land within 60 days, fined UGX 3,000,000, and the stay of execution vacated for non-compliance with security deposit condition.

Facts

In Civil Suit No. 381 of 2011, judgment was entered on 23 January 2020 declaring the sale of land comprised in Block 33 Plot 287 at Mutundwe illegal, granting a permanent injunction against the respondents. The respondents obtained a stay of execution on 15 January 2021 conditional upon depositing UGX 30,000,000 as security for due performance within 30 days. After obtaining the stay, the respondents regained possession of the suit land, increased rental structures from 32 to 39, and graded a vacant portion of the land in February 2024. The applicants contended that the respondents never properly deposited the security (having only forwarded a bank draft without obtaining a receipt) and that their continued development of the land violated both the permanent injunction and the principle that a stay of execution preserves the status quo pending appeal.

Issues

  1. Whether the Respondents are in contempt of orders of this Honourable Court issued in the judgement in Civil Suit No. 381 of 2011.
  2. Whether the orders for stay of execution issued in Miscellaneous Application No. 222 of 2020 should be vacated.
  3. Whether the Applicants are entitled to the remedies sought.

Orders

  • It is declared that the respondents were in contempt of court orders by re-occupying the applicants' land.
  • The respondents are directed to vacate the applicants' land within 60 days from the date of this ruling, failure of which they will be arrested and committed to civil prison.
  • The respondents to pay a fine of UGX 3,000,000 (Three Million Shillings) for contempt of court.
  • Costs of the application awarded to the applicants.
  • The order for stay of execution is vacated for failure to comply with the condition of paying UGX 30,000,000 as security for due performance of the decree.

Rules and key headnotes

Contempt of Court — Elements — Existence of lawful order, knowledge of order, and disobedience
To establish contempt of court, three conditions must be satisfied: existence of a lawful order, the potential contemnor's knowledge of the order, and the potential contemnor's failure to comply with the order.
Stay of Execution — Effect — Does not authorise dealing with subject matter
An order for stay of execution is interlocutory in nature and does not give the beneficiary any right to continue developing or dealing with the suit property. The order is meant to preserve the status quo and protect the applicant's right of appeal from being rendered nugatory, not to authorise further transactions with the property.
Stay of Execution — Interaction with permanent injunction
An order for stay of execution does not oust the existence of a permanent injunction order previously granted. Where a permanent injunction restrains a party from dealing with property and a subsequent stay of execution is granted, the stay does not authorise the party to deal with the property in contravention of the injunction.
Stay of Execution — Conditional orders — Effect of non-compliance with condition
Failure to comply with a condition attached to an order of stay of execution, specifically payment of security for due performance of the decree within a stipulated time, automatically vacates the order of stay of execution.
Security for due performance — Bank draft is not payment
A bank draft forwarded to the Registrar does not constitute payment or deposit of security for due performance. The party who executed the draft must follow up with the Registrar to ensure the transfer is effected, obtain a receipt, and serve it on the opposite party. Equity aids the vigilant.

Legislation cited (7)

Cases cited (7)

  • Uganda Super League v Attorney General (Constitutional Application No. 73 of 2013)
  • Richard Odoi Adome v Uganda Electricity Generation Company Ltd (Miscellaneous Application No. 1088 of 2022)
  • Hon. Sitenda Sebalu v Secretary General of the East African Community (Reference No. 8 of 2012)
  • Re Howard Amani Little (Civil Appeal No. 32 of 2006)
  • Kyambogo University v Prof. Isaiah Omolo Ndiege (Civil Appeal No. 341 of 2013)
  • Mavid Pharmacenticals Limited v Royal Group of Pakistan & Another (Miscellaneous Application No. 871 of 2020)
  • Attorney General v Male Mabirizi Kiwanuka (Miscellaneous Application No. 843 of 2021)

Full judgment

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

Luyombo_&_5_Others_v_Nankya_&_Another_(Miscellaneous_Application_666_of_2024)_[2024]_UGHCLD_152_(31_May_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.