[2003] UGHC 91

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\mwrapIndent1440\mintLim0\mnaryLim1}{\info{\title THE REPUBLIC OF UGANDA }{\author Administrator}{\operator skivumbi}{\creatim\yr2010\mo3\dy12\hr10\min40}{\revtim\yr2010\mo4\dy1\hr12\min8}{\version4}{\edmins13}{\nofpages3}{\nofwords948}{\nofchars4579} {\nofcharsws5516}{\vern32859}}{\*\xmlnstbl {\xmlns1 http://schemas.microsoft.com/office/word/2003/wordml}}\paperw12240\paperh15840\margl1440\margr1440\margt1440\margb1440\gutter0\ltrsect \widowctrl\ftnbj\aenddoc\trackmoves1\trackformatting1\donotembedsysfont0\relyonvml0\donotembedlingdata1\grfdocevents0\validatexml0\showplaceholdtext0\ignoremixedcontent0\saveinvalidxml0\showxmlerrors0\noxlattoyen \expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1440\dgvorigin1440\dghshow1\dgvshow1 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(}{\pntxta )}}\pard\plain \ltrpar\s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16139360 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid9130303\charrsid16139360 THE REPUBLIC OF UGANDA \line IN THE H}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid16139360 IGH COURT OF UGANDA AT KAMPALA \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid9130303\charrsid16139360 MISCELLANEOUS APPLICATION NO.78 OF 2003 \line (ARISING FR}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid16139360 OM CIVIL SUIT NO. 242 OF 2002) \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid9130303\charrsid16139360 DFCU BANK LTD }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid16139360 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85..}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid9130303\charrsid16139360 APPLICANT \line }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid9130303\charrsid16139360 VERSUS \line ANN }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid9130303\charrsid16139360 PERSIS NAKATE LUSEJJERE }{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid16139360 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid9130303\charrsid16139360 RESPONDENT }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid16139360 \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\ul\insrsid16139360\charrsid16139360 RULI}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\ul\insrsid9130303\charrsid16139360 NG}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid16139360 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16139360 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 This ruling is in respect of an application to stay an order for the discharge of a mortgage and the return of title deeds in respect of property comprised in LRV 684 Folio 12 at Ntinda (i.e the suit premises). T he applicant made the application by way of Notice of Motion under Order 48 rules 1 and 3 of the CPR and section 101 of the CPA. The application was accompanied by an affidavit that Mr. Joshua Ogwal swore and is dated 18th }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360 February 2003. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 The respondent made a reply to the application under an affidavit that she swore on 4th }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360 March 2003. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 The background that gave rise to this application was briefly as follows. \par The respondent mortgaged the suit premises to Gold Trust Bank Ltd which was later sold to the applicant. Under that mortgage the respondent agreed that a third party (i.e A. V. Enterprises) would, among other things obtain a loan from Gold Trust Bank Ltd t o the tune of shs. 80 million. After executing the mortgage and depositing her title for the suit premises with Gold Trust Bank Ltd the respondent did not find out whether any money was disbursed to A. V. Enterprises under the mortgage. Later on, the applic a nt bought Gold Trust Bank Ltd and sought to exercise the right of sale of the suit premises under the mortgage. Therefore, it advertised the suit premises and specified a day for the sale. The respondent at first tried to redeem the suit premises. However , because she could not fully understand whether A. V. Enterprises had truly taken a loan from Gold Trust Bank Ltd, she decided to file high Court Civil Suit No. 242 of 2002 against the applicant in a bid to have the applicant release the title for the suit premises. She contended that the applicant had no evidence to show that it released any money to A. V. Enterprises under the mortgage. In its WSD the applicant denied the respondent\rquote s claim and counter-claimed a sum of shs. 35 million which it alleged was still owing under the mortgage. Eventually, Court heard the suit and decided it in favour of the respondent. The applicant }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360\charrsid16139360 who}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 felt aggrieved by Court\rquote s decision decided to appeal. It lodged a Notice of Appeal in the Court of Appeal. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 Following that event the applicant made the application which }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360 is the subject of this ruling. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 At the time of hearing the application the applicant and the respondent were represented by Messrs Adriko and Nelima respectively. In his submission, Mr. Adriko insisted that the applicant who was dissatisfied with the decision of Court in High Court Civil Suit No. 242 of 2002 had appealed against that decision. Therefore, it needed an order for stay of execution so that it could ensure that the suit premises which (in its View) w as still the subject of a debt in its favour that amounted to shs. }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid9130303\charrsid16139360 35 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 million remained in its hands until the appeal was disposed of. Mr. Adriko further pointed out that if an order of stay of execution was not granted the appeal would he rendered nugatory and the applicant would suffer substantial loss. He therefore prayed C}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360 ourt to grant the application. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 On his part, Mr. Nelima opposed the application and submitted that the applicant did not show good cause why the stay of execution should be granted. It d id not prove that it would suffer substantial loss if the application was not granted. It quantified what it thought remained owing under the mortgage (i.e }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid13119906 shs. }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid9130303\charrsid13119906 35 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid13119906 million) and it did not}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 show that the respondent would be unable to pay that mount if the intended appeal succeeded. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 On the contrary, the respondent showed that as long as the title for the suit premises remained in the hands of the applicant the respondent would continue to lose tenants for the suit premises. Mr. Nelima therefore urged Court to dismi}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360 ss the application with costs. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 In the case of }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\ul\insrsid9130303\charrsid16139360 Somali Democratic Republic v A. S. Treon Civil }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\ul\insrsid9130303\charrsid13119906 Application }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\ul\insrsid9130303\charrsid13119906 No. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\ul\insrsid9130303\charrsid13119906 11 of 1988}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\ul\insrsid9130303\charrsid16139360 , }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 the Supreme Court held that a stay of execution should be granted if a court is satisfied that there is good cause to do so an d there are special circumstances to }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360\charrsid16139360 justify}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 such course. The important question to answer is whether the applicant satisfied Court in the above respect? Court thinks that it did not. The applicant merely showed that it appealed against the decision of Court in High Court Civil Suit No. 242 of 2002. It did not indicate even the chances it had for the success of that appeal. (See }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\ul\insrsid9130303\charrsid16139360 N2an2a v Kimani [19591 E. A. 69 an}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\ul\insrsid16139360 d Iddi Halfani v Hamisi Binti Al}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\ul\insrsid9130303\charrsid16139360 thumani [19621 E. A. 761). }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 That aside, the applicant did not prove that if Court refused to grant an order for stay of execution and later on the applicant succeeded with the appeal the respondent would be unable to pay }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid13119906 shs. }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid9130303\charrsid13119906 35 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid13119906 million it alleged}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 that A. V. Enterprises took under the mortgage. Above all, the applicant did not contradict the respondent\rquote s evidence that given the fact that at one time the applicant advertised the suit premises with a view to selling it if the respondent continued to hold on to her title that would adversely affect her chances of getting t enants for the suit premises. In the circumstances, Court has no choice but to dismiss the application with costs; and Court hereby orders so. \par }\pard \ltrpar\s15\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16139360 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360 E. S. Lugayizi \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid16139360\charrsid16139360 (Judge) \line }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360\charrsid16139360 24/3/2003 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360 \par }\pard \ltrpar\s15\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16139360 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 Read before: At }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360 11.36}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360 Mr. Adriko for Applicant \par Mr. Sewanyana Court clerk \par }\pard \ltrpar\s15\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16139360 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360 E. S. Lugayizi \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid16139360\charrsid16139360 (Judge) \line }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360\charrsid16139360 24/3/2003 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16139360 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16139360\charrsid16139360 \par }\pard\plain \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid16139360 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 \line \line \line \line \par }\pard \ltrpar\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16139360 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9130303\charrsid16139360 \par }{\*\themedata 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