Wakilii

Twahah Muziira v Impala Credit Limited (Miscellaneous Application 2464 of 2025)

High Court · [2026] UGCOMMC 188 · 2026 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for stay of execution of judgment pending appeal to the Court of Appeal
Decision
Stay of execution granted; warrant of vacant possession vacated; applicant ordered to furnish security for costs pending appeal

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court granted a stay of execution of a judgment for vacant possession pending appeal, finding that the applicant had filed a notice of appeal, faced imminent execution, and would suffer substantial loss if the property were sold. The court vacated the warrant of vacant possession and ordered the applicant to furnish security for costs of UGX 80,000,000 within two months, with costs of the application to abide the appeal.

Outcome

Stay of execution granted; warrant of vacant possession vacated; applicant ordered to furnish security for costs pending appeal

Facts

The applicant obtained a loan from the respondent secured by a registered mortgage over property in Kyadondo Block 26 Plot 354 at Bulange, Kampala. Following default, the respondent served statutory notices and instituted Originating Summons proceedings seeking vacant possession. Judgment was entered for the respondent on 27 September 2025, and a warrant of vacant possession was issued on 5 November 2025. The applicant filed a notice of appeal and applied for a stay of execution, arguing that the appeal raised questions about post-term interest not agreed in the mortgage deed, whether 7% monthly interest was extortionate, and whether the respondent was properly licensed. The applicant operates a Pentecostal church on the property.

Issues

  1. Whether the application for stay of execution pending appeal should be allowed.

Orders

  • Execution of the judgment in Originating Summons No. 0006 of 2025 is stayed.
  • The warrant of vacant possession of property comprised in Kyadondo Block 26 Plot 354 at Bulange-Mengo, Kampala is vacated.
  • The applicant shall furnish security for costs of UGX 80,000,000 to be deposited with the court within a period of 2 months from the date of this order.
  • Costs of this application shall abide the appeal.

Rules and key headnotes

Stay of Execution — Conditions for Grant — Notice of Appeal Filed
The foundation upon which applications for stay of execution pending appeal rests is the proper filing of an appeal in accordance with the law. Before a court considers whether to halt the enforcement of a decree, it must first be satisfied that the applicant has duly lodged a notice of appeal, complying with all procedural requirements.
Stay of Execution — Likelihood of Success — Frivolous Appeals
An applicant for stay of execution must place before court material that goes beyond a mere statement that the appeal has a likelihood of success. The appeal will be considered frivolous if prima facie the grounds intended to be raised are without any reasonable basis in law or equity and cannot be supported by a good faith argument.
Originating Summons — Suitability for Disputed Facts — Interest Rate Challenges
Originating summons is best suited for cases where the contention between the parties does not involve disputed complex facts. A challenge to an interest rate that would require evidence surrounding the foundation of the bargain by the parties cannot be accommodated under originating summons proceedings for vacant possession.
Stay of Execution — Nugatory Appeal — Preservation of Property
If stay is not allowed and the appeal succeeds, it will be difficult to restore the applicant in the position they were in where the property is at the verge of being sold. Where a money lending institution does not present evidence of being able to compensate the applicant, the property needs to be preserved pending appeal.
Stay of Execution — Substantial Loss — Land as Fixed Asset
Land being a fixed asset that cannot be restored when sold to a bonafide purchaser, and where the respondent's financial standing is uncertain, there is substantial loss that may result to the applicant unless the stay of execution is granted.
Stay of Execution — Security for Costs — Balancing Equities
Courts have been reluctant to order security for due performance of the decree and have instead been keen to order security for costs, because the requirement and insistence on a practice that mandates security for the entire decretal amount is likely to stifle appeals. The court may order the deposit of a portion of the decretal amount as a practical and fair mechanism to provide partial satisfaction of the decree, safeguarding the interests of both parties until the final determination of the appeal.

Legislation cited (11)

Cases cited (13)

Full judgment

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Twahah Muziira v Impala Credit Limited (Miscellaneous Application 2464 of 2025) [2026] UGCommC 188 (31 January 2026)
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.