Bank of Uganda v Transroad Limited (Civil Application No. 7197) [1997] UGCA 23 (14 March 1997)

### 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

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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