Simba Properties Investment Co Ltd and Another v Robert Kirunda and Others [2025] UGCA 282

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the disputes concerned mortgages connected to a facility agreement that was already the subject of arbitration, so by section 9 of the Arbitration and Conciliation Act no court could intervene in those matters. Because the High Court's dismissal arose from matters governed by that Act, no right of appeal lay against it. It followed that the Court of Appeal had no jurisdiction to entertain the application for a temporary injunction pending the intended appeal. The application was accordingly dismissed with costs.

Outcome

Application for a temporary injunction dismissed for want of jurisdiction, with costs to the respondents

Facts

The applicants had mortgaged six properties to Vantage Mezzanine Fund II Partnership as collateral under a Mezzanine Term Facility Agreement. In the High Court they filed a suit and an application for a temporary injunction to restrain the respondents from selling or disposing of the mortgaged properties, contending the mortgagee they were acting for had been declared legally non-existent. The High Court (Mubiru, J.) found that the disputes related to the existence, validity, performance, breach or termination of the mortgages were matters connected with the facility agreement, which was already the subject of ongoing arbitration. He held that under section 9 of the Arbitration and Conciliation Act no court could intervene, and dismissed both the application and the head suit. The applicants lodged a notice of appeal and sought a temporary injunction from the Court of Appeal restraining sale of the properties pending the intended appeal.

Issues

1. Whether a right of appeal lies to the Court of Appeal against the High Court's dismissal of an application and suit concerning matters governed by the Arbitration and Conciliation Act.
2. Whether the Court of Appeal has jurisdiction to grant a temporary injunction pending an appeal where no right of appeal exists against the impugned decision.

Orders

• Application dismissed with costs.

Rules and key headnotes

Legislation cited (1)

• Arbitration and Conciliation Act s.9

Cases cited (2)

• Babcon Uganda Ltd v Mbale Resort Hotel Ltd [2015] UGCA
• Babcon Uganda Ltd v Mbale Resort Hotel Ltd [2017] UGSC 83

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