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Tuesday, 9 February 2016

NATIONAL MICROFINANCE BANK ALLOWED TO CHALLENGE HIGH COURT RULING

The Court of Appeal has allowed the National Microfinance Bank (NMB) to challenge the decision of the High Court in relation to payments of 615m/- to businessman Augustino Wesaka Gidimara, who trades as Builders, Paints and General Supplies.

Justice Katharina Oriyo ruled in favour of the bank last week after granting an application for extension of time within which to apply for stay of execution of the High Court’s decision issued on October 31, 2014, regarding the payments in question.

“I am satisfied that this is a fit case to invoke the Court’s discretion. Accordingly, the applicant (NMB) is hereby granted an extension of 30 days leave within which to apply for an order of stay of execution,” Justice Oriyo declared.

She pointed out that having perused the affidavit by a bank official, Lilian Komwihangiro, presented before the court she found there was sufficient material to explain away the delay to apply for stay of execution.

“The applicant categorically explains why it was not legally possible to apply for a stay of execution of the decree within the prescribed time without annexing a copy of such decree,” the justice said.

According to the records, she said, the decree was actually availed to the applicant on June 19, 2015, as per the certificate of delay issued by the High Court.

In the affidavit lodged to support the application, Ms Komwihangiro, who is company secretary with the bank, had stated that they were notified on June 19, 2015, by the Deputy Registrar that copies of the proceedings, judgment and decree were ready for collection upon payment of fees.

On June 29, last year, they filed appeal before the court and that the application for stay of execution of the High Court decree could not be filed within the prescribed time as any application for stay has to be accompanied with a copy of the decree.

According to her, the copy of the decree was not supplied by the Registrar of the High Court within the prescribed time to enable the bank to file the application for stay of execution.

She stated that the applicant stands to suffer more than the respondent as the latter would not be in position to refund the bank such 615m/- should the pending appeal succeed.

Daily News

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