Wakilii

Zimba Logistic and Hardware Ltd v Tian-Tang Group Ltd (H.C.Miscellaneous Application No. 1138 of 2020)

High Court · [2021] UGCOMMC 73 · 2021 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for leave to appeal and stay of execution arising from ruling in M.A No. 578 of 2020 (which arose from Civil Suit No. 459 of 2020)
Decision
Application dismissed with costs to the respondent

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court dismissed the application for leave to appeal and stay of execution. The intended grounds of appeal did not raise substantial questions of law meriting serious judicial consideration. The applicant failed to satisfy the mandatory conditions for stay of execution under Order 43 rule 3 CPR, including proof of substantial loss, absence of unreasonable delay, and provision of security for due performance of the decree.

Outcome

Application dismissed with costs to the respondent

Facts

The applicant, Zimba Logistics and Hardware Limited, sought leave to appeal against a ruling delivered on 6 November 2020 in M.A No. 578 of 2020, which declined to grant the applicant leave to appear and defend Civil Suit No. 459 of 2020. The applicant also sought a stay of execution proceedings commenced by the respondent, Tian-Tang Group Limited, in EMA No. 66 of 2020. The underlying dispute involved a commercial debt of UGX 1,752,465,000. The applicant claimed the court erred in relying on credit reconciliations carried out without its knowledge and in finding that signatures on delivery notes matched those of the officer who acknowledged receipt of the plaint and summons. The respondent opposed the application, arguing that the intended grounds of appeal raised no substantial issues, the applicant had not fulfilled the conditions for stay of execution, and the applicant's conduct demonstrated dilatory tactics.

Issues

  1. Whether the applicant should be granted leave to appeal against the ruling in M.A No. 578 of 2020.
  2. Whether the execution proceedings in Civil Suit No. 459 of 2020 should be stayed pending appeal.

Orders

  • Application for leave to appeal dismissed.
  • Application for stay of execution dismissed.
  • Costs awarded to the respondent.

Rules and key headnotes

Civil Procedure — Leave to Appeal — Test for Grant of Leave
Leave to appeal will normally be granted where prima facie it appears that there are grounds of appeal which merit serious judicial consideration, but where the order sought to be appealed was made in the exercise of judicial discretion, a stronger case must be made out.
Civil Procedure — Leave to Appeal — Requirement to Demonstrate Arguable Points of Law
For leave to appeal to be granted, the applicant must demonstrate that there are arguable points of law or grounds of appeal which require serious judicial consideration on appeal arising from the decision of the court. The applicant must show where the court erred on the questions or issues raised.
Civil Procedure — Stay of Execution — Mandatory Conditions under Order 43 Rule 3 CPR
No order for stay of execution shall be made unless the court is satisfied that substantial loss may result to the applicant unless the order is made, that the application has been made without unreasonable delay, and that security has been given by the applicant for the due performance of the decree or order as may ultimately be binding upon the applicant.
Civil Procedure — Stay of Execution — Proof of Substantial Loss
An applicant's mere assertion that substantial loss will be caused without showing evidence to prove the same cannot suffice for grant of stay of execution. Loss of business goodwill or ordinary loss resulting from losing a case is insufficient to establish substantial loss.
Civil Procedure — Stay of Execution — Security for Due Performance of Decree
It is mandatory for an applicant seeking stay of execution to furnish security for the due performance of the decree or order as may ultimately be binding upon the applicant. Failure to indicate an intention to furnish such security is fatal to the application.
Civil Procedure — Stay of Execution — Effect of Pending Appeal
An appeal to the High Court does not per se operate as a stay of execution of proceedings. A person who wishes to prefer an appeal must institute a stay of proceedings upon sufficient cause being shown to court. A pending appeal alone is not sufficient cause to stay execution.

Legislation cited (12)

Cases cited (17)

  • Shah v Attorney General [1971] EA 50
  • Sango Bay Estates Limited v Dresdner Bank and A.G (1971) EA 71
  • G.M Combined (U) Ltd v A.K Detergents (U) Ltd (Civil Appeal No. 23 of 1994)
  • Degeya Trading Stores v URA (Court of Appeal Civil Application No. 16 of 1996)
  • Sango Bay Estates and Ors v Dresdner Bank A.G [1971] EA 17
  • Herbert Sekandi t/a Land Order Developers v Crane Bank Ltd (HCMA No. 44 of 2007)
  • Kenganzi Angella v Metl (U) Ltd (M.A No. 471 of 2015)
  • Samwiri Massa v Rose Achen (1978) HCB 297
  • Nagungu Livestock Co-operative Society Limited v Energo Project Corporation (H.C.C.S No. 207 of 1993)
  • Sango Bay v Dresdner Bank [1971] EA 17
  • Ayebazibwe v Barclays Bank Uganda Ltd & 3 Ors (Miscellaneous Application No. 292 of 2014)
  • Andrew Kisawuzi v Dan Oundo Malinqu (M.A No. 467 of 2013)
  • International Credit Bank Limited (In Liquidation) v Tropical Commodities Supplies Limited & 2 Others (C.A.C.A No. 24 of 2004)
  • Lawrence Musiitwa Kyazze v Eunice Busingye (Civil Application No. 18 of 1990)
  • Gaaga Enterprises Limited and anor v Mpindi Muhamadi Bossi (Misc. App. No. 02 of 2014)
  • Transami (Tanzania) Ltd v M/S STE DATCO (Civil Application No. 97 of 2004)
  • Equity Bank Uganda Ltd v Nicholas Were (M.A No. 604 of 2013)

Full judgment

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Zimba Logistic and Hardware Ltd v Tian-Tang Group Ltd (H.C.Miscellaneous Application No. 1138 of 2020) [2021] UGCommC 73 (19 March 2021)
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.