The Court of Appeal has halted the execution of an order requiring a Chinese road Construction Company; China Henan International Cooperation Group Company Limited to pay billions of shillings in compensation to its former consultant Justus Kyabahwa.
Justice Christopher Madrama of the Appeal Court issued an interim order stopping any further payments and or transfer of money from the company’s accounts in Guarantee Trust Bank Limited pending determination for the main application by three judges.
Justice Madrama said the order is in regard to garnishee orders that were not executed as of April 19 this year.
A garnishee order is a common form of enforcing a judgment debt against a creditor to recover money.
“The applicant (company) seeks a right of hearing before an order may be made granting or refusing the stay of execution pending appeal. The issue of the respondent being able to pay should be a consideration for the full bench. The application for stay of execution would be rendered nugatory if an interim order of stay of execution is not granted,” the judge reasoned.
The interim order came after the road construction company filed a notice of appeal to challenge the High Court decision.
On March 19 this year, the Commercial Division of the High Court ordered the Chinese firm to pay the consultant $900,000 as compensation for the contract, $200,000 in damages and $250,000 as general damages for inconvenience.
The High Court also dismissed the application in which the company had sought to stay the implementation of the judgement orders pending an appeal process.
Uganda’s Corporate Finance and Capital Markets Luminary, Miriam Ekirapa Musaali, Passes OnAccording to the court documents, amid the pending appeal, Kyabahwa obtained garnishee orders and attached the company’s bank accounts in Stanbic Bank on April 9 this year.
Court heard that the Chinese company lawyers were on April 9 served with two orders against the company, UNRA and Guarantee Trust Bank (Uganda) Limited threatening execution of the court decree and that efforts to stop the implementation of the orders were dismissed by the judge.
The court record show that Kyabahwa was paid in execution of a garnishee with respect to money worth $1 million owing to him in Stanbic Bank Uganda Limited and UNRA.
According to the court documents, Kyabahwa obtained garnishee orders worth Shs800m and $800,000 from Uganda National Road Authority (UNRA).
In granting the interim order, Justice Madrama held that he considered the submission of Kyabahwa stating that ‘execution was completed in respect of certain garnishee proceedings.
Appeal
In the intended appeal, the company is faulting the high court judge on erring both in fact and in law while making the judgement.
