Parambot Breweries Limited (In recievership) v Standard Chartered Bank Uganda Limited and Another (Civil Application 46 of 2022)

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.

Holding

The single judge held that an applicant for an interim order of injunction need only establish a competent notice (or memorandum) of appeal, a pending substantive application, and a serious threat of execution or alienation. At the interim stage the court does not examine the merits. The applicant satisfied all three conditions: a memorandum of appeal was filed, a substantive application (Civil Application No. 45 of 2022) was pending, and a New Vision advert showed an imminent sale. Following Woodmore Energy, deposit of 30% of the forced sale value is not a precondition for an interim order. The respondent's objections on abuse of process, locus and the deposit were matters for the full bench. The application was granted.

Outcome

Interim order of injunction granted to preserve the status quo until the determination of the main application by a full bench

Facts

The applicant, Parambot Breweries Ltd (in receivership), obtained credit facilities from the first respondent bank between 2010 and 2014, later consolidated into a single term loan. The applicant defaulted, and the total indebtedness at the time of the default notice was stated as UGX 7,518,249,828. After the applicant failed to honour a payment plan, the bank appointed the second respondent as receiver. Disputes over the bank's claim and the secured properties are the subject of pending suits, including Civil Appeal No. 279 of 2021 and HCCS No. 443 of 2016. The first respondent advertised the sale of properties comprised in Kyadondo Block 197 Plots 121, 122, 677 and 678 at Kitetika and Kyadondo Block 220 Plot 1623 at Kiwatule, in the New Vision of 2 February 2022, with a sale date of 4 March 2022. The applicant sought an interim injunction to restrain the sale and further receivership activities pending determination of a substantive application for a temporary injunction.

Issues

1. Whether the applicant satisfied the conditions for the grant of an interim order of injunction pending determination of the substantive application for a temporary injunction.
2. Whether the application was an abuse of court process, whether the applicant had locus, and whether the failure to deposit 30% of the forced sale value barred the grant of an interim order.

Orders

• The application is granted until the determination of the main application by a full bench.
• An interim order of injunction issues maintaining the status quo and restraining the respondents from advertising, selling, disposing, auctioning or otherwise alienating the suit properties pending determination of the main application for a temporary injunction.

Rules and key headnotes

Legislation cited (5)

• Judicature (Court of Appeal Rules) Directions S.I. 13-10 r.2(2)
• Judicature (Court of Appeal Rules) Directions S.I. 13-10 r.6(2)(b)
• Judicature (Court of Appeal Rules) Directions S.I. 13-10 r.42(2)
• Judicature (Court of Appeal Rules) Directions S.I. 13-10 r.43
• Judicature (Court of Appeal Rules) Directions S.I. 13-10 r.76

Cases cited (11)

• Hon Theodore Ssekikubo and 3 Others v Attorney General and Others (Constitutional Application No. 4 of 2014)
• Patrick Kaumba Wiltshire v Ismail Dabule (Civil Appeal No. 3 of 2018)
• Alcon International v New Vision (Civil Appeal No. 4 of 2010)
• Yakobo Senkungu and Others v Cerencio Mukasa (Civil Appeal No. 5 of 2013)
• Giuliani Gargio v Claudio Casadio (Civil Appeal No. 3 of 2013)
• Devani v Bhadresa and Another (Civil Appeal No. 21 of 1971)
• Shumuk Properties Ltd v Guaranty Trust Bank (U) Ltd (Civil Application No. 220 of 2018)
• Mathew Rukikaire v Incafex Ltd (Civil Appeal No. 10 of 2015)
• China Henan International Cooperation Group Co. Ltd v Justus Kyabahwa (Civil Appeal No. 30 of 2021)
• Zubeda Mohamed and Another v Laila Wallia and Another (Civil Reference No. 7 of 2016)
• Woodmore Energy Consultancy Ltd and 3 Others v Guaranty Trust Bank Ltd (Civil Application No. 270 of 2016)

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