Hwan Sung Industries Ltd v Tajdin Hussein & Ors [2008] UGSC 17 (19 September 2008)

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\jclisttab\tx6480\lin6480 }{\listname ;}\listid1269433838}}{\*\listoverridetable{\listoverride\listid1269433838\listoverridecount0\ls1}}{\*\rsidtbl \rsid79498\rsid416995\rsid599332\rsid1459853\rsid1520526\rsid1582671\rsid2250852\rsid2574644\rsid2650609 \rsid3095973\rsid3564240\rsid3684632\rsid3740752\rsid3761209\rsid4402640\rsid4547293\rsid4667284\rsid4997234\rsid5325029\rsid6488445\rsid6574321\rsid7350099\rsid7682315\rsid8021271\rsid8544103\rsid8814149\rsid9204520\rsid9253931\rsid9372003\rsid9457870 \rsid10633785\rsid10753807\rsid10771857\rsid11600351\rsid12321071\rsid12601230\rsid13506940\rsid14510724\rsid14762490\rsid14882047\rsid15532695\rsid15598424\rsid16087172\rsid16415733}{\*\generator Microsoft Word 11.0.5604;}{\info {\title THE REPUBLIC OF UGANDA}{\author pkiyimba}{\operator }{\creatim\yr2008\mo12\dy6\min27}{\revtim\yr2008\mo12\dy6\min27}{\printim\yr2008\mo9\dy17\hr11\min47}{\version2}{\edmins0}{\nofpages6}{\nofwords1213}{\nofchars6915}{\nofcharsws8112}{\vern24689}} 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.}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14762490 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\i\fs28\lang2057\langfe1033\langnp2057\insrsid14762490 THE REPUBLIC OF UGANDA \par IN THE SUPREME COURT OF UGANDA \par AT MENGO \par CIVIL APPLICATION NO. 19 OF 2008 \par }{\b\i\fs28\lang2057\langfe1033\langnp2057\insrsid16087172 \par }{\b\i\fs28\lang2057\langfe1033\langnp2057\insrsid14762490 B E T W E E N \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14762490 {\b\i\fs28\insrsid14762490 \par CORAM:\tab \tab G. M. OKELLO, JSC. \par \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10771857 {\b\i\fs28\insrsid14762490 HWANG SUNG INDUSTRIES LTD:\tab ::::::::::\tab APPLICANT \par }\pard \qc \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10771857 {\b\i\fs28\insrsid14762490 AND \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14762490 {\b\i\fs28\insrsid14762490 1. TAJDIN HUSSEIN \par 2. RAINBOW FOODS LTD. \par 3. NIZAR HUSSEIN:\tab \tab \tab \tab ::::::::::\tab RESPONDENTS}{\b\i\fs28\insrsid1459853 \par }{\b\i\fs28\insrsid14762490 \par }{\b\i\fs28\insrsid16087172 \par }\pard \qj \li454\ri454\widctlpar\aspalpha\aspnum\faauto\adjustright\rin454\lin454\itap0\pararsid14762490 {\b\i\fs28\insrsid14762490 (An application arising from Civil Application No. 18 of 2008, which in turn arose from Civil Appeal No. 08/2008) \par }{\b\i\fs28\insrsid16087172 \par }{\b\i\fs28\insrsid14762490 \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14762490 {\fs28\insrsid14762490 This is an application under rules 2(2), 42(1) and 47(2) of the Rules of this Court for an interim order for stay of}{ \fs28\insrsid6574321 e}{\fs28\insrsid14762490 xecution. The applic}{\fs28\insrsid599332 ation also seeks an order for co}{\fs28\insrsid14762490 s}{\fs28\insrsid599332 ts}{\fs28\insrsid14762490 of this application. }{\fs28\insrsid599332 \par \par }{\fs28\insrsid14762490 The grounds on which the application is based are contained in the Notice of Motion itself. In a nutshell,}{\fs28\insrsid8021271 }{\fs28\insrsid15532695 the ground is to preserve the status quo of the subject matter of dispute pending the disposal of the subst}{\fs28\insrsid6574321 antive application for stay of e}{\fs28\insrsid15532695 xecution now pending in this court as Civil Application No.18 of 2008.}{\fs28\insrsid14762490 \par }{\fs28\insrsid15532695 \par }{\fs28\insrsid9253931 Briefly, the applicant had successfully sued the respondents in HCCS No. 271 of 2003, for breach of contrac t. On appeal to the Court of Appeal, the respondents were successful. The applicant who was dissatisfied with the decision of the C}{\fs28\insrsid416995 ourt}{\fs28\insrsid9253931 of Appeal, appealed to this court vide Civil Appeal No. 08 of 2008.}{ \fs28\insrsid15532695 \par }{\fs28\insrsid79498 \par }{\fs28\insrsid1582671 Anxious to reap the fruits of th}{\fs28\insrsid7682315 e}{\fs28\insrsid1582671 i}{\fs28\insrsid7682315 r}{\fs28\insrsid1582671 success in t he Court of Appeal, the respondents applied for execution of the decree of the Court of Appeal. The applicant who got }{\fs36\insrsid13506940 wind}{\fs28\insrsid1582671 of that application}{\fs28\insrsid7682315 ,}{\fs28\insrsid1582671 applie}{ \fs28\insrsid3761209 d}{\fs28\insrsid1582671 in this court, vide Civil Application No. 18}{\fs28\insrsid3761209 }{\fs28\insrsid1582671 of 2008, for an order of stay of execution of the}{\fs28\insrsid3761209 decree in c}{\fs28\insrsid1582671 ourt of Appeal Civil Appeal No. 71 of 2005, pending the dispo}{\fs28\insrsid3095973 sal of appeal No. 08 of 2008. H}{\fs28\insrsid1582671 e also filed the inst}{\fs28\insrsid3761209 ant application for interim ord}{\fs28\insrsid1582671 e}{ \fs28\insrsid3761209 r}{\fs28\insrsid1582671 for stay. \par }{\fs28\insrsid3761209 \par In the meantime, the Registrar of the Court of Appeal, acting on an application by the respondents, issued warrant of attachment and sale of the applicant\rquote s property in execution, when the applicant failed to respond to the }{ \b\i\fs28\insrsid3761209 \'93Notice to show cause\'94}{\fs28\insrsid3761209 issued under 022 r 39 of the Civil Procedure Rules. On receipt of the warrant of attachment and sale in execution, the Court Bailiff proceeded to attach the plaintiff\rquote s property. \par \par }{\fs28\insrsid7682315 At the}{\fs28\insrsid3761209 hearing, Mr. George Omunyokol appeared for the applicant while }{\fs28\insrsid7682315 }{\fs28\insrsid3761209 Ms. Verma Jivram represented the respondents. \par \par }{\fs28\insrsid79498 \par }{\fs28\insrsid2650609 Presenting the applicant\rquote s case, Mr. Omunyokol submitted that the application seeks the court\rquote s interim intervention to preserve the status quo pending the disposal of th}{\fs28\insrsid9372003 e main application for stay of e}{\fs28\insrsid2650609 xecution}{\fs28\insrsid7682315 now}{\fs28\insrsid2650609 pending in this court }{\fs28\insrsid7682315 as}{\fs28\insrsid2650609 Civil Application No. 18 of 2008. He acknowledged that attachment of the applicant\rquote s property in execution of the decree has already been effected on 15-09-08, but that the execution was not yet complete. Sale of the attached property has not yet been done. Referring to paragraph 7 of the supporting affidavit of Mr. T enywa, a quality controller of the applicant, learned counsel contended that if the order sought was not granted, the applicant\rquote s pending appeal would be rendered nugatory. He suggested that the applicant was willing to deposit some money as security for performance of the decree of the Court of Appeal, pending the}{\fs28\insrsid13506940 disposal of the pending appeal.}{ \fs28\insrsid3761209 \par }{\fs28\insrsid13506940 \par Ms. Jivram opposed the application on a number of grounds, firstly that the application has been overtaken by event. Attachment of the app}{\fs28\insrsid7682315 licant\rquote s property on 15-09-2008}{\fs28\insrsid13506940 in execution of the decree has already altered the position. The fact of the attachm}{\fs28\insrsid7682315 ent is contained in paragraphs 3}{\fs28\insrsid13506940 }{\fs28\insrsid10771857 -}{\fs28\insrsid13506940 10 }{\fs28\insrsid5325029 of the affid} {\fs28\insrsid13506940 avit of James Birungi, Court Bailiff. Learned counsel argued that to grant this application in}{\fs28\insrsid5325029 this }{\fs28\insrsid13506940 circumstance would be to reverse rather than to }{\fs28\insrsid5325029 maintain the status quo. \par \par Secondly, that neither the number nor a copy of the stated pendin}{\fs28\insrsid10771857 g }{\fs28\insrsid7682315 substantive }{\fs28\insrsid10771857 application for stay of e}{\fs28\insrsid5325029 xecution has been disclosed or made available. The respondent was left to assume the existence of the said substantive application for stay of execution. \par \par }{\fs28\insrsid9457870 Thirdly, citing }{\b\i\fs28\insrsid9457870\charrsid7350099 Editor}{\b\i\fs28\insrsid7350099\charrsid7350099 -}{\b\i\fs28\insrsid9457870\charrsid7350099 in}{\b\i\fs28\insrsid7350099\charrsid7350099 -}{ \b\i\fs28\insrsid9457870\charrsid7350099 Chief New Vision, News paper - vs - Ntabgoba, Civil Application No. 63 of 2005, Court of Appeal}{\fs28\insrsid7350099 (u}{\fs28\insrsid9457870 n reported}{\fs28\insrsid7350099 )}{\fs28\insrsid9457870 , learned counsel submitted that there is no evidence of special circumstance and good cause to justify grant of such an application. The burden is on the applicant to show the special circumstance and good cause to justify grant.}{\fs28\insrsid13506940

\par }{\fs28\insrsid9457870 \par Fourthly, that there is also no evidence of inability o}{\fs28\insrsid14510724 f the respondent to refund the }{\fs28\insrsid14510724\charrsid8544103 decretal}{\fs28\insrsid14510724 amount, if paid, in the event of the appeal succeeding. The burden to show that inability is}{\fs28\insrsid7682315 also}{\fs28\insrsid14510724 on the applicant.}{\fs28\insrsid9457870 \par }{\fs28\insrsid14510724 \par Fifthly, that the application for stay of execution needs to be brought without delay. Normally such an appl ication should be made informally as soon as the judgment is delivered. Learned counsel pointed out that in the instant case, the application was filed nearly two years after the judgment was delivered. In her view, this application was not brought with out delay and that there is no special circumstance and good cause to justify grant}{\fs28\insrsid7682315 ing it}{\fs28\insrsid14510724 . \par \par She prayed that the application be dismissed. \par \par Having heard both counsel on this matter, it is important to point out that rule 2(2) of the Rules of this court preserves the inherent power of this court to make any orders to achieve the end of justice or to prevent abuse of its process. \par }{\fs28\insrsid1520526 \par }{\fs28\insrsid8814149 \par \par }{\fs28\insrsid1520526 In the instant application, the justice of the case requires that the main application for stay of execution, now pending before t his court, be heard before the execution is effected otherwise that main application would be rendered nugatory. \par }{\fs28\insrsid4667284 \par }{\fs28\insrsid8544103 It was argued by Ms. Jivram that this application has been overtaken by event}{\fs28\insrsid7682315 since}{\fs28\insrsid8544103 }{\fs28\insrsid7682315 a}{\fs28\insrsid8544103 ttachment in execution has already been effected on 15-09-08. I find no dispute about the attachment having been effected in execution of the decree in question but}{\fs28\insrsid8814149 I accept Mr. Omu}{\fs28\insrsid599332 nyokol\rquote s submission}{ \fs28\insrsid8544103 that}{\fs28\insrsid599332 the}{\fs28\insrsid8544103 attachment alone did not complete the execution. In an execution by attachment and Sale, both compon ents must be completed in order to complete the execution. This was not the case in the instant case.}{\fs28\insrsid1520526 \par }{\fs28\insrsid9204520 \par Ms. Jivram further submitted that the applicant did not show any special circumstance and good cause to justify grant of this application. She cited the }{\b\i\fs28\insrsid9204520\charrsid7350099 Editor }{\b\i\fs28\insrsid3684632 -}{ \b\i\fs28\insrsid9204520\charrsid7350099 in Chief o}{\b\i\fs28\insrsid7350099\charrsid7350099 f the New Vision News paper - }{\b\i\fs28\insrsid9204520\charrsid7350099 vs - Jeremia}{\b\i\fs28\insrsid7350099 h}{\b\i\fs28\insrsid9204520\charrsid7350099 Ntabgoba, Civil Application No. 63 of 2004, COA}{\b\i\fs28\insrsid7350099\charrsid7350099 }{\fs28\insrsid7350099\charrsid3684632 (un reported)}{\fs28\insrsid7350099 . That case was a substantive application for stay of execution and the matter to be considered for grant of }{\fs28\insrsid599332 a substantive }{\fs28\insrsid7350099 application}{\fs28\insrsid599332 for stay}{\fs28\insrsid7350099 are not necessarily the same in considering application for an interim order}{\fs28\insrsid599332 for}{\fs28\insrsid7682315 stay}{\fs28\insrsid7350099 pending disposal of the substantive application.}{\fs28\insrsid9204520 \par }{\fs28\insrsid7350099 \par }{\fs28\insrsid16415733 For an application for an interim order of stay, it suffices to s}{\fs28\insrsid7682315 how}{\fs28\insrsid16415733 that a substantive application i s pending and that there is a serious threat of execution before the hearing of the pending substantive application. It is not necessary to pre-empt consideration of matters necessary in deciding whether or not to grant the substantive application for st ay.}{\fs28\insrsid7350099 \par }{\fs28\insrsid2574644 In the instant application, I am satisfied that there is pending in this court a substantive application for stay of execution of the decree in Civil Appeal No. 71 of 2003, which is the subject of appeal in this court}{ \fs28\insrsid14882047 . I am also satisfied that there is a real threat to execute the decree before the disposal of the substantive application. When that is done, the substantive application would be rendered nugatory. The attachment that was effected on 15-09-08, did not complete the execution of that decr ee, therefore, this application has not been overtaken by event.}{\fs28\insrsid16415733 \par }{\fs28\insrsid15598424 \par }{\fs28\insrsid14882047 In the result, I allow the application and order as follows: \par \par {\listtext\pard\plain\b\i\fs28\insrsid14882047 \hich\af0\dbch\af0\loch\f0 (1)\tab}}\pard \qj \fi-720\li1080\ri0\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1080\itap0\pararsid15598424 {\b\i\fs28\insrsid14882047 Sale of the property attached on 15-09-08 as shown in the inventory signed by a representative of the applicant and attached to James Birungi\rquote s affidavit must stay pending the disposal of Civil Application No. 18 of 2008 or until 17-11- 08, whichever comes first. \par }\pard \qj \li360\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid15598424 {\b\i\fs28\insrsid10771857 \par }{\b\i\fs28\insrsid15598424 \par {\listtext\pard\plain\b\i\fs28\insrsid14882047 \hich\af0\dbch\af0\loch\f0 (2)\tab}}\pard \qj \fi-720\li1080\ri0\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1080\itap0\pararsid15598424 {\b\i\fs28\insrsid14882047 If by 17-11-08, the substantive application (No. 18 of 2008) is still pending, this matter must be brought to court for review. \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15598424 {\b\i\fs28\insrsid10771857 \par }{\b\i\fs28\insrsid15598424 \par {\listtext\pard\plain\b\i\fs28\insrsid14882047 \hich\af0\dbch\af0\loch\f0 (3)\tab}}\pard \qj \fi-720\li1080\ri0\widctlpar\jclisttab\tx1080\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1080\itap0\pararsid15598424 {\b\i\fs28\insrsid14882047 Costs of this application to abide the result of the substantive application. \par }\pard \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14882047 {\b\i\fs28\insrsid14882047 \par }{\b\i\fs28\insrsid15598424 \par }{\b\i\fs28\insrsid14882047 Dated at Mengo this: }{\b\i\fs28\insrsid12321071 19}{\b\i\fs28\super\insrsid12321071\charrsid12321071 th}{\b\i\fs28\insrsid12321071 }{\b\i\fs28\insrsid14882047 day of}{\b\i\fs28\insrsid12321071 September}{ \b\i\fs28\insrsid14882047 , 2008. \par }{\b\i\fs28\insrsid10771857 \par \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10771857 {\b\i\fs28\insrsid10771857 G. M. OKELLO \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12601230 {\b\i\fs28\insrsid10771857 JUSTICE OF THE SUPREME COURT}{\fs28\insrsid8544103\charrsid3761209 \par }}