Institution of proceedings

Stanbic Bank (U) Ltd v Atabya Agencies (Civil Appeal No. 2 of 2005) [2006] UGSC 6 (15 March 2006);

Flynote: 

Search Summary: 

This appeal was against the decision of the
Court of Appeal which upheld the ruling of the
High Court ordering the appellant as a
guarantor to pay over Shs. One billion to the

respondent on behalf of Uganda Commercial
Bank (UCB). The background to the appeal is
that the respondent filed against UCB and the
appellant undertook to pay the decretal sum in
case the matter was resolved in favor of the
respondent. The matter resolved in favor of the
respondent but UCB sought and was granted
the leave to appeal and successfully stayed the
decree but on appeal the counsel for the
appellant instituted the suit in the name of
Stanbic Bank which matter was resolved in the
dismissal of the appeal. The respondent applied
in the High Court to effect the honoring of the
pledge as he had become liable as a surety but
the judge allowed the respondent at application
to appeal the decision. That appeal was
dismissed and was the subject of this appeal on
the grounds that the grounds raised at appeal
hadn’t been conclusively determined.

Headnote and Holding: 

The court held that since there was no move by
UCB to introduce the right parties at appeal,
the respondent was entitled to infer and rightly
so that the appeal envisaged by the
understanding resolved in his favor and hence
the appeal had no merit.

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