THE REPUBLIC OF UGANDA
IN THE SUPREME COURT OF UGANDA
[CORAM: ODOKI, CJ, ODER, TSEKOOKO, KAROKORA AND KANYEIHAMBA,JJ.S.C.]
CIVIL APPEAL No.2 OF 2005
STANBIC BANK (U) LTD. ::::::::: APPELLANT
ATABYA AGENCIES ::::::::::: RESPONDENT
[Appeal from a decision of the Court of Appeal at Kampala
(Mpagi-Bahigeine, Engwau and Twinomujuni, JJ.A.) dated 7th December, 2004 in Civil Appeal No.59 of 2004]
JUDGMENT OF TSEKOOKO, JSC.
This appeal is 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 facts leading to this appeal can be summarised as follows. The respondent Atabya Agencies Ltd., instituted civil suit No.1197 of 1999 against UCB in the High Court claiming a certain sum of money. The High Court, (Okumu-Wengi,J) decided the suit in favour of the respondent. UCB filed a notice of appeal showing an intention to appeal against the decision of the High Court and also sought for and obtained a stay of execution of the judgment and the decree of the High Court, pending institution and disposal of the intended appeal. The stay was granted after the appellant made a guarantee dated 24th June, 2003 in favour of the respondent agreeing to pay the decretal amount on behalf of the UCB if the intended appeal was decided in favour of the respondent. Subsequently a Court of Appeal Civil Appeal No.69 of 2003 was in fact instituted. However Counsel who prepared and instituted the appeal apparently entitled the appeal as under:
"STANBIC BANK UGANDA LIMITED"
(Now merged with Uganda Commercial Bank Limited-Appellant
Atabya Agencies Limited