[2024] UGCommC 267
The court held that the law requires security for due performance of the decree to be furnished before a stay of execution can be granted. The applicants' request to deposit only 5% of the decretal sum was rejected as an afterthought and not supported by their affidavit or the law. Since both parties agreed to a...
Source-derived case information.
- Citation
- [2024] UGCommC 267
- Parties
- Applicant: King James Comprehensive School Limited; Applicant: Odongo Dickson; Applicant: Ajwang Evaline; Respondent: Eco Bank Uganda Limited
- Court
- Commercial Court of Uganda
- Jurisdiction
- Uganda
- Case Number
- Miscellaneous Application 2755 of 2023 ; Miscellaneous Application 2756 of 2023
- Procedural Posture
- Miscellaneous Application / Ruling
- Outcome
- application granted subject to provision of bank guarantee for full decretal sum
- Judges
- Anna B. Mugenyi, J
- Legal Topics
- Stay of Execution, Security for Due Performance, Bank Guarantee, Decretal Sum
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
King James Comprehensive School Limited
Applicant
Odongo Dickson
Applicant
Ajwang Evaline
Applicant
Eco Bank Uganda Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling
Legal Issues
- 1 Whether the applicants should be granted a stay of execution pending furnishing of security for due performance of the decree.
- 2 What form and amount of security is appropriate for the due performance of the decree.
Ratio Decidendi
The court held that the law requires security for due performance of the decree to be furnished before a stay of execution can be granted. The applicants' request to deposit only 5% of the decretal sum was rejected as an afterthought and not supported by their affidavit or the law. Since both parties agreed to a bank guarantee for the full decretal amount, the court ordered the applicants to provide a bank guarantee for Ugx 5,341,084,070.44 within two months, failing which execution proceedings may continue. The decision was grounded in Order 43 Rule 4(3) of the Civil Procedure Rules and the parties' mutual agreement on the form and amount of security.
Court Disposition
application granted subject to provision of bank guarantee for full decretal sum
Orders
- Applicants to furnish a bank guarantee for Ugx 5,341,084,070.44 within two months from the date of the ruling.
- Failure to provide the bank guarantee within the stipulated period will result in continuation of execution proceedings.
Full Case Text
Judgment text and source record
27 paragraphs
**THE REPUBLIC OF UGANDA**
## IN THE HIGH COURT OF UGANDA AT KAMPALA (COMMERCIAL DIVISION)
**MISCELLANOUS APPLICATION NO. 2755 AND 2756 OF 2023**
- 1. KING JAMES COMPREHENSIVE SCHOOL LIMITED - 2. ODONGO DICKSON - 3. AJWANG EVALINE
**APPLICANTS**
## VERSUS
ECO BANK UGANDA LIMITED ::::::::::::::::::::::::::::::::::::
BEFORE: HON. LADY JUSTICE ANNA . B. MUGENYI
## Date: 17<sup>th</sup> January 2024
## **RULING**
I have read the pleadings and listened to the submissions of counsel in this matter.
Counsel for the respondent conceded to the application provided the **15** applicant furnished a bank guarantee for the decretal sum of Uax 5,341,084,070.44 as undertaken by them within 14 days.
Counsel for the applicant, from the Bar, prayed the applicant be allowed to deposit 5% of the decretal amount and relied on case law to submit that the
- court had discretion regarding determination of the amount of security for the $20$ due performance of the decree to be deposited by the applicant.
Order 43 Rule 4(3) of the Civil Procedure Rules (CPR) provides that "stay of execution maybe granted by court upon being satisfied that:-
c) Security has been given by the applicant for the due performance of the decree or order as may ultimately be binding upon him or her...."
The applicants in their affidavit in support averred that the applicants are willing to deposit into court security for the due performance of the decree in the form of bank guarantee. The decree referred to indicates a decretal amount of Ugx 5.341,084,070.44/= and the Bank Guarantee the applicants are willing to deposit
is for the due performance of the decree. The law is clear on this aspect and the applicant is willing to comply with the law as stated. The submissions of counsel for the applicants from the Bar praying to deposit 5% of the decretal sum cannot be relied on by this court and appear to be an afterthought.
In the circumstances, the applicants are directed to give security for the due performance of the decree in the sum of Ugx 5,341,084,070.44 as indicated in their affidavit in support.
Since the parties are amenable to the security for the due performance of the decree in the form of a bank guarantee, the applicants should avail the same in the said form within 2months from the date of this Ruling; failure of which execution proceedings may continue.
nhitur
Anna . B. Mugenyi
Judge
a) ...
b) $\ldots$
17<sup>th</sup>.01.2024
Scanned with CamScanner