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Uganda Judgment

Court of Appeal of Uganda

Ankole Riverline Hotel Limited & Another v Orient Bank Limited & Another (Civil Application 1214 of 2023) [2025] UGCA 20 (29 January 2025)

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Source document

01

Holding and result

The application for stay of execution is incompetent because the applicants filed the notice of appeal almost a month after the judgment, contrary to Rule 76(2) which requires filing within 14 days. There is no evidence that the applicants sought to validate the late notice. Since compliance with the procedural requirements for lodging a notice of appeal is a precondition for the grant of a stay of execution under Rule 6(2)(b), the court has no basis to entertain the application. The failure to file the notice of appeal within the prescribed time and the absence of any application for validation renders both the notice and the present application fatally defective. Consequently, the application is dismissed with costs to the 1st respondent.

Court disposition

application dismissed with costs

Orders

  • The application for stay of execution is dismissed.
  • Costs awarded to the 1st respondent.

02

Material facts

Parties

Ankole Riverline Hotel Limited

Applicant

Hygin Twongyeirwe Kururagire

Applicant

Orient Bank Limited

Respondent

Juliet Dusabe Twongyeirwe

Respondent

Amounts and remedies

  • Damages Awarded to 2nd Respondent: UGX 10,000,000
  • Damages Awarded to 1st Respondent: UGX 104,195,415

03

Procedural history

  1. Posture

    Stay Application / Ruling on Application for Stay of Execution Pending Appeal

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants argue that they have filed an appeal with a high likelihood of success and that execution of the decree would render the appeal nugatory. They assert that they will suffer substantial loss if a stay is not granted, that the application was brought without unreasonable delay, and that they are willing to provide security for the performance of the decree.
Respondent
The 1st respondent contends that the intended appeal is frivolous and only intended to frustrate the realization of the judgment. The respondent further argues that the notice of appeal was filed out of time, contrary to Rule 76(2) of the Court of Appeal Rules, and that the applicants have not sought leave to validate the notice, rendering the application incompetent.

05

Court’s reasoning

  1. 01

    Rule 76(2) of the Court of Appeal Rules

    A notice of appeal must be filed within 14 days from the date of judgment for a stay of execution to be considered.

  2. 02

    Rule 6(2)(b) of the Court of Appeal Rules

    The court may grant a stay of execution where a notice of appeal has been lodged in accordance with the rules.

06

Ratio, limits and disposition

Ratio decidendi

The application for stay of execution is incompetent because the applicants filed the notice of appeal almost a month after the judgment, contrary to Rule 76(2) which requires filing within 14 days. There is no evidence that the applicants sought to validate the late notice. Since compliance with the procedural requirements for lodging a notice of appeal is a precondition for the grant of a stay of execution under Rule 6(2)(b), the court has no basis to entertain the application. The failure to file the notice of appeal within the prescribed time and the absence of any application for validation renders both the notice and the present application fatally defective. Consequently, the application is dismissed with costs to the 1st respondent.

Obiter and limits

  • Applicants must strictly comply with procedural timelines for notices of appeal to access remedies such as stay of execution.
  • Failure to validate a late notice of appeal cannot be overlooked by the court.

Court disposition

application dismissed with costs

  • The application for stay of execution is dismissed.
  • Costs awarded to the 1st respondent.

Source and reliance status

Court of Appeal of Uganda

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Judgment text

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Source document

Court of Appeal of Uganda

Judgment

[2025] UGCA 20

THE REPUBLIC OF UGANDA

IN THE COURT OF APPEAL OF UGANDA AT KAMPALA

CIVIL APPLICATION NO. I2I4 OF 2023

(Arising from Commercial Court Civil Suit No. 131 of 2014)

I. ANKOLE RIVERLINE HOTEL LIMITED

2. HYGIN TWONGYEIRWE KURURAGIRE..................... APPLICANTS

VERSUS

1. ORIENT BANK LIMITED

2. JULIET DUSABE TWONGYEIRWE RESPONDENTS

RULING OF MARGARET TIBULYA. JA

- <sup>I</sup>. This is a ruling on an application for stay of execution of the decree in High Court Civil Suit No. 131 of 2014, pending the determination of the applicants appeal. It is supported by the affidavit of the 2nd applicant, Hygin Twongyeirwe Kururagire, the managing director of the l'1 applicant' - 2. The grounds ofthe application are that, - a. the applicant was the 2nd defendant in Civil Suit No. 131 of 2014, Juliet Dushabe Twongyeirwe vs. Orient Bank & 2 Others' - b. the judgment in the above Civil Suit was entered against the applicants who were ordered to pay damages of a sum of 10,000,000/: with interest at court rate to the 2nd respondent,, and a sum of 104,195,4151: with 26Yo interest to the l't respondent, and costs ofthe suit. - c. the applicants filed an appeal against the judgment of the High Court. - d. the appeal has a high likelihood ofsuccess, and

- e. the same would be rendered nugatory if a stay of execution is not granted.the applicants will suffer substantial loss unless an order for stay of execution is grented. - f. there is serious threat of execution which would rendered the appeal nugatory, - g. the application has been brought without unreasonable delay - h. the applicant is willing to give security for the performance of the decree. - 3. The l't respondent opposed the application, maintaining that the intended appeal is frivolous and only intended to frustrate the respondent from realizing the fruits of its judgment. Further, that the notice of appeal was filed out of time contrary to rule 76 (2) of this court's rules, and that the applicants have not sought leave of the court to validate the notice. - 4. The applicant does not deny that the judgment in the lower court was delivered on 27'h February 2017 .lt is also not denied that the notice of appeal was filed on 24'h March 201 7, almost a month after the judgment was delivered. - 5. The power of this court to grant orders of stay ofexecution is provided under rule 6 (2) of the rules of this court which provides as follows;

Rule 6 (2) (b)

the court may in any civil proceedings where a notice of appeal has been lodged in accordance with Rule 76 [emphasis added] ofthese rules, order a stay ofexecution, an injunction or stay of proceedings as the court considers just.

6. Rule 76 (2) requires that a notice of appeal should be filed within 14 days from the date ofjudgment. In this case, the notice of appeal was filed almost a nronth alter delivery of the judgment, which renders it incompetent. There is nothing on the record to show that the applicant bothered to have the notice ofappeal validated. This renders this application incompetent.

7. In this result, the application is dismissed with costs to the l't respondent.

Dated, signed, delivered at Kampala ,n\*?\*, alanuary 2025.

q ulva

Justice of Appeal.

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Rule 6(2)(b) of the Court of Appeal Rules

Legislation

Legislation referenced in the available case record.

Rule 76(2) of the Court of Appeal Rules

Legislation

Legislation referenced in the available case record.

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