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Ola Energy Uganda Limited v Attorney General of the Republic of Uganda (Application No.2 of 2024)

East African Court of Justice · [2025] EACJ 8 · 2025 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for stay of execution pending appeal from the First Instance Division judgment dismissing Reference No. 6 of 2020 as time-barred
Decision
Application for stay of execution dismissed with costs to the Respondent

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The East African Court of Justice Appellate Division dismissed an application for stay of execution where the First Instance Division had merely dismissed the applicant's reference as time-barred. The Court held that an order of stay of execution cannot issue where the trial court has not made a positive order capable of execution, such as directing a party to do or refrain from doing something or to pay money. A dismissal order is not amenable to stay of execution. The Court declined to invoke inherent powers under rule 4 where rule 87 comprehensively regulates stay of execution applications.

Outcome

Application for stay of execution dismissed with costs to the Respondent

Facts

Ola Energy Uganda Limited imported lubricants into Uganda claiming preferential tariff treatment under EAC Rules of Origin. Following a post-clearance audit, Uganda Revenue Authority assessed a tax liability of UGX 2,488,646,440. The Applicant filed Reference No. 6 of 2020 in the First Instance Division challenging the assessment. On 11 October 2024, the First Instance Division dismissed the Reference as time-barred without determining the merits. The Applicant filed a Notice of Appeal on 23 October 2024 and on 31 October 2024 applied for stay of execution of the dismissal order pending appeal. The Applicant had secured the disputed amount through an insurance bond valid until 23 June 2025.

Issues

  1. Whether the Application for stay of execution is properly before the Court.
  2. Whether the Applicant has satisfied the conditions for grant of an order of stay of execution.
  3. Who should bear the costs of the Application.

Orders

  • Application dismissed.
  • Applicant to bear costs of the Application.

Rules and key headnotes

Stay of Execution — Dismissal Orders — Orders Not Capable of Execution
An order of stay of execution cannot issue where the trial court has merely dismissed a reference or application, as such an order is not a positive order capable of execution and does not require any party to do or refrain from doing anything.
Stay of Execution — Conditions for Grant — Rule 87 Requirements
To obtain an order of stay of execution under rule 87 of the East African Court of Justice Rules of Procedure 2019, an applicant must demonstrate that substantial loss may result unless the order is made, that the application has been made without unreasonable delay, and that security has been given for due performance of the decree or order.
Inherent Powers — Limits on Exercise — Express Statutory Provisions
The inherent powers of a court under rule 4 may only be invoked where there is no express provision that addresses a matter for adjudication and cannot be exercised in contravention of, conflict with, or ignoring express legal provisions.
Precedent — Persuasive Authority — Decisions of Partner State Courts
Decisions of municipal courts of EAC Partner States do not have binding precedential authority before the East African Court of Justice but may provide persuasive inspiration, particularly where rendered by the highest tribunals in those countries and relevant to the matter under consideration.

Legislation cited (9)

  • Treaty for the Establishment of the East African Community Article 39
  • East African Court of Justice Rules of Procedure 2019 rule 4
  • East African Court of Justice Rules of Procedure 2019 rule 52(4)
  • East African Court of Justice Rules of Procedure 2019 rule 84
  • East African Court of Justice Rules of Procedure 2019 rule 87(3)
  • East African Court of Justice Rules of Procedure 2019 rule 87(4)
  • East African Court of Justice Rules of Procedure 2019 rule 87
  • East African Court of Justice Rules of Procedure 2019 rule 127
  • Laws of the Community (Interpretation) Act 2004 s.63(4)

Cases cited (22)

  • East African Law Society v Attorney General of Uganda & another (Application No. 1 of 2013)
  • [2019] KEHC 6523
  • Kyambogo University v Prof. Isaiah Omolo Ndiege (Civil Application No. 341 of 2013)
  • Western College of Arts and Applied Sciences v E. P. Oranga & 3 others [1976] eKLR
  • Kenya Shell Ltd v Benjamin Karuga Kibiru & another [1986] eKLR
  • P. K. Sengendo v Busulwa Lawrence & another (CACA 207/14)
  • Hon. Theodore Ssekikubo & others v The Attorney General & others (SCCA No. 01 of 2014)
  • George ole Sangui v Kedong Ranch Ltd [2015] eKLR
  • Exclusive Estates Ltd v Kenya Posts and Telecommunications Corporation & another [2005] 1 EA 53
  • FRS v JDS (CA No. Nai. 114 of 2012)
  • Devani & 4 others v Joseph Ngindari & 3 others (CA No. Nai 136 of 2004)
  • F & S. Scientific Ltd v Kenya Revenue Authority & another (CA No. 260 of 2012)
  • Republic v Kenya Anti-Corruption Commission & 2 others (CA No. 51 of 2008)
  • Mombasa Sea Port Duty Free Ltd v Kenya Ports Authority (CA No. Nai. 242 of 2006)
  • Stanbic Bank Kenya Ltd v Kenya Revenue Authority (CA No. Nai 294 of 2007)
  • Metro Pharmaceuticals Ltd v Kenya Revenue Authority (CA No. Nai 131 of 2012)
  • Marangu Rucha & another v Attorney General & 10 others (CA No. 180 of 2013)
  • Male H. Mabirizi K. Kiwanuka v Attorney General of Uganda (Reference No. 6 of 2020)
  • Geoffrey Magezi v National Medical Stores (Appeal No. 2 of 2016)
  • Attorney General of the Republic of Uganda v Johnson Akol Omunyokol (Application No. 10 of 2015)
  • Attorney General of Burundi v Secretary General of EAC & another (Appeal No. 4 of 2019)
  • Dr. Margaret Zziwa v The Secretary-General of EAC (Appeal No. 2 of 2017)

Full judgment

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

Ola Energy Uganda Limited v Attorney General of the Republic of Uganda (Application No.2 of 2024) [2025] EACJ 8 (6 March 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.