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Uganda Judgment

Court of Appeal of Uganda

Uganda National Examinations Board v Mparo General Contractors Limited (Civil Application No. 31 of 2003) [2003] UGCA 41 (4 April 2003)

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01

Holding and result

The court found that the applicant, being a statutory body, may require more time to process large payments, and that the delay in depositing the cheque was minimal and not indicative of bad faith or undue delay. The court was satisfied that granting an interim stay of execution would not cause injustice to the respondent, and that the applicant had acted promptly in seeking relief. Therefore, the application for an interim order of stay of execution was granted pending the hearing of the substantive application.

Court disposition

interim stay of execution granted

Orders

  • An interim order of stay of execution in Arbitration Cause No. 3 of 2000 is granted up to 15th May 2003.

02

Material facts

Parties

Uganda National Examinations Board

Applicant Counsel: Mr. Ssekatawa

Mparo General Contractors Limited

Respondent

Amounts and remedies

  • Amount in Dispute (cheque): UGX 160,085,370

03

Procedural history

  1. Posture

    Stay Application / Interim Application for Stay of Execution Pending Substantive Application

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant, a statutory body, sought an interim stay of execution of an arbitral award, arguing that the delay in depositing the cheque was minimal and due to institutional procedures. The applicant contended that it acted without undue delay and that refusal of the stay would cause injustice.
Respondent
The respondent opposed the stay, relying on the fact that the applicant failed to comply with the court's order to deposit the cheque within the stipulated time, and that previous applications for extension had been dismissed.

05

Court’s reasoning

  1. 01

    Rules 1(3), 42(1)(2) of the Rules of the Court of Appeal of Uganda

    Courts have discretion to grant interim orders of stay of execution where justice so demands, especially to preserve the status quo pending determination of substantive applications.

  2. 02

    General principles of civil procedure

    Procedural lapses by statutory bodies may be excused if there is no undue delay and no prejudice to the other party.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the applicant, being a statutory body, may require more time to process large payments, and that the delay in depositing the cheque was minimal and not indicative of bad faith or undue delay. The court was satisfied that granting an interim stay of execution would not cause injustice to the respondent, and that the applicant had acted promptly in seeking relief. Therefore, the application for an interim order of stay of execution was granted pending the hearing of the substantive application.

Obiter and limits

  • The court appreciates the procedural challenges faced by statutory bodies in processing large payments.
  • Prompt recourse to court is a relevant factor in the exercise of discretion for interim relief.

Court disposition

interim stay of execution granted

  • An interim order of stay of execution in Arbitration Cause No. 3 of 2000 is granted up to 15th May 2003.

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

[2003] UGCA 41

THE REPUBLIC OF UGANDA

IN THE COURT OF APPEAL OF UGANDA AT KAMPALA

CORAM: HON. LADY IUSTICE C. N. B. KITUMBA, JA

CIVIL APPLICATION NO. 31 OF 2OO3

UGAN DA NATIONAT EXAMINATIONS BOARD: : : : : : : : : : : : : : : :APPLICANT VERSUS

MPARO GENERAL CONTRACTORS LIMITED: : : : : ; : : : : : : : : : :RESPONDENT

RULTNG OF C. N. B. KITUMBA, ]A

This is an application brought by notice of motion Rules 1 (3) a2 (1) (2) of the Rules of this court. It seeks for an interim order of stay of execution in Arbitration Cause No. 3 of 2000, pending the hearing of the substantive application that is Civil Application No. 23 of 2003 of this court.

I have read the Notice of Motion and the supporting affidavits and heard the submissions by Mr. Ssekatawa counsel for the applicant.

Okumu-Wengi l. heard Miscellaneous Application No. 614 of 2002 and on 28th November granted stay of execution. The applicant had to deposit the cheque in court within 21 days. The amount was 160,085,370/=. The cheque was deposited in court one day late and was refused by the Registrar.

Application No.84712002, which was filed by the applicant seeking for extension of time was also dismissed on 201312003. Hence this application for stay in this court which is now seeking for an interim order of stay pending he hearing of the substantive application.

I appreciate that the applicant is a statutory body and the time taken to sign a cheque of 160,085,370/= might have been long. The applicant has come to court without delay. I do not think that the respondent will suffer any injustices if an interim order of stay is granted.

I find the application has merit. The interim order of stay of execution in Arbitration Cause No. 3 of 2000 is granted up to 15th May 2003.

Dated at Kampala this dl day of .... PQs.l 2003.

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C. N. B. KTTUMBA JUSTICE OF APPEAL

I

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Authorities

Authorities used by the court

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

Rules 1(3), 42(1)(2) of the Rules of the Court of Appeal of Uganda

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