The High Court Commercial Division has dismissed an application by Roko Construction Limited seeking to halt execution of a $399,156 (Shs 1.5 billion) judgment debt owed to Pramukh Steel Limited, in a ruling that could still carry significant legal and financial implications for the prominent construction firm.
The decision, delivered by Lady Justice Dr. Ginamia Melody Ngwatu on June 4, 2025, stems from a commercial dispute in which Pramukh Steel sued Roko Construction for non-payment of steel supplies valued at $450,827 (Shs 1.7 billion).
After accounting for partial payments of $51,671 (Shs 196 million) made by Roko, the trial court in 2024 awarded Pramukh Steel the outstanding balance of $399,156 (Shs 1.5 billion), along with 10% interest from the date of filing and legal costs.
Roko Construction challenged the ruling and filed a notice of appeal in October 2024, subsequently applying for a stay of execution while the appeal is pending before the Court of Appeal.
In its application, Roko argued that failure to stay execution would expose it to substantial financial loss and irreparable harm, citing procedural irregularities at trial — including its claim that it was denied a fair hearing after an audit report was admitted without cross-examination of the auditor.
Pramukh Steel’s legal team, however, dismissed the application as frivolous and designed to frustrate execution.
They argued that the audit process had been properly conducted by a court-appointed auditor after multiple delays caused by Roko’s own refusal to comply with court directives.
her ruling, Justice Ngwatu rejected Roko’s claims, stating that the company had failed to present sufficient evidence of any likelihood of success on appeal or any definite risk of irreparable harm.
Notably, Roko did not submit a memorandum of appeal or provide certified trial records to support its case.
“The applicant has failed to satisfy the essential considerations for a grant of an order of stay of execution pending appeal,” Justice Ngwatu ruled.
She emphasized that enforcement of a money decree, in the absence of proof that the respondent is impecunious, does not ordinarily render an appeal nugatory since payments made can be refunded if the appeal succeeds.
The court further noted that although Roko filed its application without unreasonable delay, it had not provided any security for due performance of the judgment, as required by law.
The ruling now allows Pramukh Steel to proceed with execution and recover the full amount awarded, subject to any further action by the Court of Appeal.
The case, registered as Miscellaneous Application No. 074 of 2025 (arising out of Civil Suit No. 990 of 2020), reflects the ongoing legal and financial pressures affecting Uganda’s construction sector, where firms like Roko continue to navigate a complex web of contracts, liabilities, and judicial scrutiny.