Wakilii

Nzeyi v Menna (Civil Application 544 of 2024)

Court of Appeal · [2025] UGCA 21 · 2025 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application before a single Justice of Appeal for a stay of execution pending appeal
Decision
Application for stay of execution dismissed; respondent free to execute the decree

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Hearing an application for a stay of execution pending appeal, the single Justice restated the established conditions: a prima facie case or likelihood of success, irreparable damage or the appeal being rendered nugatory, and that the application was brought without delay, failing which the court weighs the balance of convenience. The court accepted that the applicant had shown a prima facie case but held that payment of a judgment sum is not itself irreparable loss, that the respondent decree-holder could refund the money if the appeal succeeded, and that the applicant retained control of the company and the shares. Having found no irreparable damage, the court held the balance of convenience favoured the decree-holder and dismissed the application with costs.

Outcome

Application for stay of execution dismissed; respondent free to execute the decree

Facts

The respondent had sold all his shares in Innscor Uganda Limited to the applicant for US$450,000, of which only part was paid. The respondent, having relocated to the United States, sued for the balance in HCCS No. 288 of 2011 and obtained judgment for US$230,000 plus costs. The applicant lodged an appeal and sought a stay of execution, the High Court having dismissed a like application on 9 September 2024. The applicant argued that the respondent was domiciled abroad with no assets in Uganda, so the decretal sum could not be recovered if the appeal succeeded, that he had received no benefit from the untransferred shares, and that execution would enable tax evasion. The respondent contended that the appeal was frivolous, that he held a decree in his favour, and that nothing suggested he could not refund the money if the appeal succeeded.

Issues

  1. Whether the applicant adduced sufficient evidence to justify the grant of a stay of execution pending appeal.

Orders

  • The application for a stay of execution of the decree in HCCS No. 288 of 2011 is declined.
  • The application is dismissed with costs to the respondent.

Rules and key headnotes

Civil Procedure — Stay of Execution Pending Appeal — Conditions for Grant
An applicant for a stay of execution pending appeal must establish a likelihood of success or a prima facie case, that he will suffer irreparable damage or that the appeal will be rendered nugatory if a stay is not granted, and that the application was brought without delay; where the first two are not established, the court determines where the balance of convenience lies.
Civil Procedure — Stay of Execution — Irreparable Damage and Substantial Loss
The substantial or irreparable loss required for a stay of execution cannot mean the ordinary loss every judgment debtor suffers on losing his case; the applicant must show that execution will create an irreversible state of affairs negating the essential core of his success on appeal, and payment of a judgment sum to a solvent decree-holder who can refund it is not such a loss.
Civil Procedure — Stay of Execution — Balance of Convenience
Where the applicant fails to establish irreparable damage, the balance of convenience lies in favour of the decree-holder, who should not be deprived of the fruits of his judgment.

Legislation cited (4)

  • Judicature (Court of Appeal Rules) r.2
  • Judicature (Court of Appeal Rules) r.6(2)(b)
  • Judicature (Court of Appeal Rules) r.42(2)
  • Judicature (Court of Appeal Rules) r.76

Cases cited (4)

  • Laurence Musitwa Kyazze v Eunice Busingye (Civil Application No. 18 of 1990)
  • China Henan International Cooperation Ltd v Justus Kyabahwa (Court of Appeal Civil Application No. 100 of 2021)
  • Hon Theodore Ssekikubo & Others v Attorney General and Another (Constitutional Application No. 6 of 2013)
  • Tropical Commodities Supplies Ltd & Others v International Credit Bank Ltd (in Liquidation) (2004) 2 EA 337

Full judgment

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

Nzeyi v Menna (Civil Application 544 of 2024) [2025] UGCA 21 (29 January 2025)
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.