Sitting as a single judge of the Court of Appeal, Justice Florence Nakachwa Dollo stayed the execution orders issued by Justice Patience Rubagumya of the Commercial Division of the High Court against city lawyer Robert Muhereza and Richard Mayamba.
In his application for stay of execution, Muhereza told court that he has appealed the decision of the High Court and chances are high that the Court of Appeal is going to overturn the decision of the lower court not to stay the ongoing execution against him which is going to turn his application academic.
He stated that Victoria Sugar Limited which is pushing for the execution of the orders of the lower court is seeking to enforce execution of a substantial sum of over Shs337m which shall irreparably affect his financial capacity.
He added that being an advocate of the High Court to which all courts are subordinate, and currently trading in legal business, allowing the execution of the lower court orders by way of arrest as indicated in the execution application will create great reputational damage to him and his business.
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“That once reputation is tarnished, it can be extremely challenging to restore and the consequences can be far-reaching and long lasting,” Muhereza stated in his application.
However, Victoria Sugar’s lawyers led by Alfred Byamugisha put up a spirited legal fight telling the presiding judge that by a letter dated 21st November, 2024, Muhereza was served with the notice of termination of the agreement and demanded for a refund of the instalments of the purchase price.
He refunded Shs30m to his clients and offered to pay Shs10m per month in his personal capacity not as an advocate and insisted that the issue of an advocate is immaterial because he did not enter into the agreement in his capacity as an advocate, but rather it was a purely commercial transaction.
In her ruling, the judge noted that Victoria sugar intended to execute the high court orders through arrest and detention of the Applicants in civil prison to the event that they fail to pay the decretal sum mentioned in the execution application.
“Therefore, the Applicants have proved to this court’s satisfaction that there are eminent threats to execution which if allowed to proceed will lead to their arrest and detention in civil prison or attachment of the decretal sum which is the subject matter of the appeal,” the judge ruled.
According to the evidence affidavit of Jiyani Dilipkumar Kanubhai the Victoria Sugar director, both parties executed an agreement dated 26th September, 2024 where by Muhereza and colleague were to sell land and gave a warranty that they were the beneficial owners of the land and that they were in the process of obtaining a minute approving their application for allocation of the land from the Nakaseke District Land Board.
The sugar company paid Shs100m on 26th September, 2024, Shs100m on 23rd October 2024 and Shs110m on 12th November, 2024 respectively.
Following the failure to fulfil the conditions precedent, the sugar company’s lawyers served Muhereza with notice of termination of the agreement and made a demand for a refund of the instalments of the purchase price paid together with interest thereon.
Muhereza and colleague agreed to refund the instalments of the purchase price and requested to pay an initial deposit of Shs30m and subsequent monthly payments of Shs10m but the sugar company rejected their request and on 30th November, 2024, Muhereza refunded the sum of Shs30m.
After failing to refund all the company’s money with interest, the company decided to sue them and secure a judgement at the Commercial Division of the High Court which they are fighting to execute.
