Kyagalanyi Coffee Ltd v Itungo Simon and Others (Labour Dispute Miscellaneous Application No. 83 of 2025) [2025] UGIC 37 (21 May 2025) | Garnishee Orders | Esheria

Kyagalanyi Coffee Ltd v Itungo Simon and Others (Labour Dispute Miscellaneous Application No. 83 of 2025) [2025] UGIC 37 (21 May 2025)

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# **THE REPUBLIC OF UGANDA IN THE INDUSTRIAL COURT OF UGANDA AT KAMPALA LABOUR DISPUTE MISCELLANEOUS APPLICATION NO. 83 OF 2025 CONSOLIDATED WITH LABOUR DISPUTE MISCELLANEOUS APPLICATION NO. 77 OF 2025 ARISING FROM LABOUR DISPUTE MISCELLANEOUS APPLICATION 090. OF 2024** *(All arising from MGLSD/LC/346/2021)*

## **KYAGALANYI COFFEE LTD APPLICANT**

## **VERSUS**

**ITUNGO SIMON & 12 OTHERS RESPONDENTS**

**Before:** The Hon. Mr. Justice Anthony Wabwire Musana

Panelists: Hon. Adrine Namara, Hon. Susan Nabirye & Hon. Michael Matovu.

### **INTERIM ADMINISTRATIVE MEASURE**

- **[1]** On the 19th of May 2025, Mr. Augustine Idoot *Esq,* appearing for the Applicant, urgently requested this Court to lift or set aside a garnishee order nisi issued by His Worship Daniel Lubowa, Acting Registrar of this Court. The Applicant's bank account was subject to garnishment of UGX 232,164,434/= following the Applicant's difficulty in meeting a conditional order of stay of execution. Counsel emphasized the need for interim relief until the hearing and final disposal of the main application, underlining the pressing and urgent nature of the situation. - **[2]** Mr. Jonan Nuwandinda Rwambuka, appearing for the Respondent, opposed the application, contending that this Court did not have jurisdiction to hear and consider this application. - **[3]** Upon prompting by the Court, LDMA No. 83 or 2025 was consolidated with LDMA 77 of 2025. Counsel filed lengthy written submissions from which several legal questions, including the propriety of these proceedings, the propriety and likelihood of success of an appeal, the right to a fair hearing, the fairness of the Learned Registrar's garnishee order nisi and the jurisdiction of this Court, arose. Counsels' research and industry has also produced a wealth of authorities. - **[4] It** is common cause that the order nisi is to be made absolute on the 21st of May 2025. Under Order 23 Rule 2 of the Civil Procedure Rules S.l. 71-1, an order nisi operates as an injunction that prevents

the bank from paying out the money until the order is made absolute or is discharged.<sup>1</sup> The order nisi is to be made absolute today, the 21st of May 2025, which would have the effect of a discharge.

- **[5]** We are satisfied that there is urgency in the applications now before us due to the impending absolute order nisi. The order nisi may be made absolute before this Court has had an opportunity to consider the full merits and demerits of the applications. At the cornerstone of ourjudicial system sits the right to a fair hearing before the resort can be had to exercise the Court's final coercive power. Fair hearing is, after all, <sup>a</sup> central tenet of labour justice. We are also mindful of the Respondents' desire for <sup>a</sup> speedy resolution of these matters. It follows that this is a proper case for an interim protective measure pending the hearing and disposal of applications. Under Section 8(3)(d) of the Labour Disputes(Arbitration and Settlement) Act Cap. 227, this Court is imbued with the power of the High in exercising its function, ensuring a fair and just process for all parties involved.<sup>2</sup> Precedent confirms the inherent power of the High Court to be exercised in the interests of justice.<sup>3</sup> In the matter before us, the interests of justice sway in halting the garnishment pending hearing and disposal of the applications before us. - **[6]** For the reasons above, we are inclined to issue the following administrative measures; - (i) An interim administrative order lifting the Garnishee Order Nisi in LDMA No. 90 of 2025, hereby issues pending this Court's final ruling and determination of LDMA No. 83 of 2025 as consolidated with LDMA No. 77 of 2025. Our final ruling shall be emailed on the 11th of June 2025. - (ii) The Registrar of this Court is also directed to cause the listing of Labour Dispute Appeal No. 10 of 2024 for issuance of directions on Monday, the 26th of May 2025 at 9:30 a.m.

We so direct.

**Signed, dated and delivered** at Kampala this 21st day of May 2025

*AnihorrfWatiwire* Musana, Judge, Industrial Court

- **The Panelists agree.** - 1. Hon. Adrine Namara - 2. Hon. Susan Nabirye

*Lubeqa vLubega & 5 Others [2022] UGCommC 192*

*<sup>2</sup>* Per Wabwire Musana J. *el al* in Appro v Mercy Corps Uganda (20241 UGIC 23 at pp 23,24

<sup>3</sup> *Bwambale v Byabashaija and 10 Others (HCT-01-CV-CS 24 of2020) (20231UGHCCD 107 (20 March 2023)*

3. Hon. Michael Matovu

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#### **Electronic delivery of the administrative measures**

Under the Judicature (Electronic Filing, Service, and Virtual Proceedings) Rules, 2024,*(the Rules)* whose objective under Rule 3(a) is to promote simplicity, fairness, and efficiency in court administration by reducing unjustifiable expenses and delays, especially now that we find the matters herein to be urgent, and under Rule 3(d) of the Rules which provides for the exchange of electronic versions of rulings, and upon agreement of Mr. Augustine Idoot *Esq* for the Applicant and Mr. Jonan Nuwandinda Rwambuka *Esq* for the Respondent, these administrative measure are delivered by circulation to the parties by email as follows:

- [aidoot@kaa.co.ug](mailto:aidoot@kaa.co.ug) for the Applicant and; (i) - [rwambukadvocates@gmail.com](mailto:rwambukadvocates@gmail.com) & [rwadvocates@gmail.com](mailto:rwadvocates@gmail.com) for the Respondent. (ii)

The timestamp of delivery of these administrative measures is to be taken as 21st May 2025 at 9:30 a.m.

Anthony WabV/ire Musana, **Judge of the Industrial Court of Uganda.**