Wakilii

Zimba Logistics and Hardware Ltd v Unistrong Investment (U) Ltd (H.C.Miscellaneous Application No. 1215 of 2020)

High Court · [2021] UGCOMMC 72 · 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 refusal of leave to appear and defend in summary suit
Decision
Both applications dismissed with costs to the respondent

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that leave to appeal will not be granted where the intended grounds of appeal do not raise substantial questions of law meriting serious judicial consideration. The applicant's grounds were factual disputes already determined and did not constitute points of law. Stay of execution was refused where the applicant failed to prove substantial loss beyond ordinary consequences of losing, exhibited dilatory conduct, and did not furnish mandatory security for due performance of the decree. Application dismissed with costs.

Outcome

Both applications 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. 579 of 2020, in which the court declined to grant the applicant leave to appear and defend Civil Suit No. 460 of 2020. The underlying suit concerned a debt of UGX 1,069,210,200. The applicant filed a notice of appeal and requested the record of proceedings. The respondent, Unistrong Investment (U) Ltd, commenced execution proceedings. The applicant applied for leave to appeal and for stay of execution pending appeal, arguing that the court erred in relying on credit reconciliations allegedly done without the applicant's knowledge and in finding that delivery notes were signed by the officer who acknowledged service. The respondent opposed both applications, arguing that the grounds raised no substantial legal issues, the notice of appeal was filed out of time, and the applicant had not satisfied the mandatory conditions for stay of execution.

Issues

  1. Whether the applicant should be granted leave to appeal against the ruling refusing leave to appear and defend.
  2. Whether execution proceedings in Civil Suit No. 460 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 from an interlocutory order will be granted only where prima facie it appears that there are grounds of appeal which merit serious judicial consideration, and where the order was made in the exercise of judicial discretion, a stronger case must be made out.
Civil Procedure — Leave to Appeal — Points of Law Distinguished from Questions of Fact
For leave to appeal to be granted, the applicant must demonstrate arguable points of law requiring serious judicial consideration. A point of law is a question that must be answered by applying relevant legal principles to interpretation of the law. Factual disputes already determined by the trial court do not constitute points of law meriting appellate consideration.
Civil Procedure — Stay of Execution — Conditions for Grant
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. All three conditions are mandatory and must be satisfied.
Civil Procedure — Stay of Execution — 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 the ordinary consequences of losing a case do not constitute the substantial loss required for stay of execution.
Civil Procedure — Stay of Execution — Security for Due Performance
Furnishing security for due performance of the decree is a mandatory condition for stay of execution. Where the dispute arises from a commercial transaction, the applicant must furnish security before seeking stay of execution. Economic hardship, including effects of the Covid-19 pandemic, does not excuse compliance with this mandatory requirement.
Civil Procedure — Stay of Execution — Dilatory Conduct
Where an applicant has exhibited dilatory conduct by filing applications and abandoning them, requiring the respondent to fix them for hearing, such conduct amounts to delay intended to deny the respondent the fruits of judgment and will weigh against granting stay of execution.

Legislation cited (13)

Cases cited (12)

  • Sango Bay Estates Limited v Dresdner Bank and A.G. [1971] EA 71
  • Degeya Trading Stores v Uganda Revenue Authority (Court of Appeal Civil Application No. 16 of 1996)
  • Herbert Sekandi t/a Land Order Developers v Crane Bank Ltd (H.C.Miscellaneous Application No. 44 of 2007)
  • Kenganzi Angela v Metl (U) Ltd (Miscellaneous Application No. 471 of 2015)
  • Nagungu Livestock Co-operative Society Limited v Energo Project Corporation (H.C.Civil Suit No. 207 of 1993)
  • Ayebazibwe v Barclays Bank Uganda Ltd & 3 Others (Miscellaneous Application No. 292 of 2014)
  • Lawrence Musiitwa Kyazze v Eunice Busingye (Civil Application No. 18 of 1990)
  • Andrew Kisawuzi v Dan Oundo Malingu (Miscellaneous Application No. 467 of 2013)
  • International Credit Bank Limited (In Liquidation) v Tropical Commodities Supplies Limited & 2 Others (Court of Appeal Civil Appeal No. 24 of 2004)
  • Gaaga Enterprises Limited and Another v Mpindi Muhamadi Bossi (Miscellaneous Application No. 02 of 2014)
  • Transami (Tanzania) LTD vs M/S STE DATCO, Civil Application No.97 of 2004
  • Equity Bank Uganda Ltd v Nicholas Were (Miscellaneous Application No. 604 of 2013)

Full judgment

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

Zimba Logistics and Hardware Ltd v Unistrong Investment (U) Ltd (H.C.Miscellaneous Application No. 1215 of 2020) [2021] UGCommC 72 (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.