[1997] UGCA 23
The court determined that the interests of both parties would be best served by granting a stay of execution on the condition that the decretal amount and costs be deposited in a joint account held by the advocates for both parties at Barclays Bank, Kampala Road Branch. The arrangement ensures that the funds are...
Source-derived case information.
- Citation
- [1997] UGCA 23
- Parties
- Applicant: Bank of Uganda; Respondent: Transroad Limited
- Court
- Court of Appeal of Uganda
- Jurisdiction
- Uganda
- Case Number
- Civil Application No. 7197
- Procedural Posture
- Civil Miscellaneous Application / Consent Judgment on Stay of Execution Pending Appeal
- Outcome
- Consent judgment entered; stay of execution granted on agreed terms.
- Judges
- Manyindo, DCJ, Byamugisha, j, Augustus Kania, J
- Legal Topics
- Stay of Execution, Bank Guarantees, Appeals Process, Decretal Amounts
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Bank of Uganda
Applicant
Transroad Limited
Respondent
Procedural Posture
Civil Miscellaneous Application / Consent Judgment on Stay of Execution Pending Appeal
Legal Issues
- 1 Whether the guarantee issued by Bank of Baroda matured upon the determination of the appeal by the Court of Appeal.
- 2 Whether a stay of execution should be granted pending the outcome of the Supreme Court appeal.
- 3 How the decretal amount and costs should be secured pending the final determination of the appeal.
Ratio Decidendi
The court determined that the interests of both parties would be best served by granting a stay of execution on the condition that the decretal amount and costs be deposited in a joint account held by the advocates for both parties at Barclays Bank, Kampala Road Branch. The arrangement ensures that the funds are preserved and will be paid to the party entitled to them following the Supreme Court's decision. The guarantee issued by Bank of Baroda is discharged as the security for the decretal amount is now provided by the joint account. Interest accruing on the account will belong to the applicant in any event, and costs of the application will abide the result of the Supreme Court appeal.
Court Disposition
Consent judgment entered; stay of execution granted on agreed terms.
Orders
- The decretal amount of USD 5,533,555.80 and costs of £221 to be deposited in a joint account at Barclays Bank, Kampala Road Branch, within 14 days by the advocates for both parties.
- If the Supreme Court upholds the Court of Appeal decision, the funds shall be paid to the respondent or their counsel upon presentation of the Supreme Court order.
Full Case Text
Judgment text and source record
22 paragraphs
### THE REPUBLIC OF UGANDA
### IN THE COURT OF APPEAL OF UGANDA
## HOLDEN AT KAMPALA
# (CORAM: S. T. MANYINDO - DCJ, LADY C. K. BYAMUGISHA - J, A. KANIA - J.) CIVIL MISC. APPLICATION NO. 7/97
## BETWEEN
| BANK OF UGANDA: | : | $\cdot\cdot\cdot$ | | $\cdots \qquad \cdots \qquad \cdots$ | $\cdots$ | APPLICANT | |--------------------------------|---|-------------------|----|--------------------------------------|----------|------------| | | | | VS | | | | | TRANSROAD LIMITED: : : : : : : | | | | | | RESPONDENT |
(Arising out of Civil Appeal No. 48 of 1996)
| Mr. Masembe Kanyerezi | $\bar{\phantom{a}}$ | For Applicant. | |--------------------------------|---------------------|----------------| | Mr. Mwesigwa Rukutana assisted | | | | by Mr. Paul Kiapi | $\bar{\phantom{a}}$ | For Respondent |
Mr. Mwesigwa - Rukutana - The crux of the matter in this application is the interpretation of the guarantee. The guarantee was meant to cover an appeal to the Supreme Court as this Court was not in existence. As the appeal was transferred to this Court and determined, the guarantee matured. We thus made a demand and our client is entitled to the money. We are not seeking to excecute against the applicant but against Bank of Baroda. I have now consulted Mr. Kanyerezi and we have agreed that stay of execution be granted on the following terms:-
(1) That the decretal amount of USD 5,533,555.80 and costs of £221 be deposited on a joint account to be opened with $M/s$ . Barclays Bank, Kampala Road Branch, within 14 days from to-day by M/s. Mwesigwa Rukutana & Co. Advocates (Counsel for the respondent/judgment creditor) and M/s. Mugerwa & Matovu Advocates (Counsel for applicant/judgment debtor).
$(2)$ In the event of the Supreme Court upholding the decision of this Court the said amount shall be automatically and immediately paid to the respondent or their Counsel $(M/s.$ Mwesigwa Rukutana & Co Advocates) on presentation of the Supreme Court order to the Bank to that effect.
$...$ /2
$\mathbf{2}$
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That in the event of the Supreme Court allowing the $(3)$ appeal, the said amount shall be automatically and immediately paid to the applicant or their Counsel (Ms. Mugerwa & Matovu Advocates) on presentation of the Supreme Court order to that effect.
$(4)$ That the interest accruing on the said account shall be the applicant's in any event.
That costs of this application shall abide the result $(5)$ of the appeal in the Supreme Court.
$(6)$ That the Guarantee issued by the Bank of Baroda to the respondent on 18-6-96, is hereby discharged.
Court Consent judgment is entered in the above terms. $\overline{\phantom{a}}$
DATED at Kampala This...!4th. Day of: $M$ . March. 1997. $\ldots$ aymdi
> S. T. MANYINDO DEPUTY CHIEF JUSTICE
C. K. BYAMUGISHA JUDGE A. KANIA J U D G E