The High Court has temporarily halted the enforcement of over Shs 1.2 billion in costs awarded to court bailiffs in a protracted property dispute between DFCU Bank Limited and Meera Investments Limited.
The ruling by Justice Olive Kazaarwe Mukwaya grants interim relief to DFCU Bank pending the resolution of broader appeals.
The case originates from a 2017 civil lawsuit concerning properties claimed by Meera Investments, which owned by businessman Sudhir Ruparelia. Following a court ruling where DFCU was ordered to vacate the premises of Meera Investments, bailiffs from FIT Auctioneers were appointed to manage the handover or eviction.
However, DFCU Bank contends that no forceful eviction took place; instead, the properties, which were previously occupied by Crane Bank, were peacefully transferred during a meeting overseen by police in February 2024.
Despite this, the bailiffs submitted bills claiming substantial execution costs: one for Shs 2.5 billion (later reduced to Shs 1.26 billion) and another for Shs 23.9 million (reduced to Shs 13 million).
DFCU Bank challenged these costs, arguing that the bailiffs did not “execute” the warrant since the matter was resolved amicably. The bank’s legal manager, Muhammad Kiwanuka Ssenoga, stated in court documents that granting the stay was “just and equitable” due to ongoing appeals against the taxation rulings and the risk of immediate enforcement.
Conversely, Godfrey Nyakoojo, the lead bailiff from FIT Auctioneers, defended the costs, asserting they were fairly calculated based on the high value of the properties, as supported by valuation reports. Nyakoojo described DFCU’s application as “unjustified” and urged the court to allow him to collect the payment, emphasising his right to compensation for the work performed.
Justice Mukwaya ruled in favour of DFCU for the time being, likening an interim stay to “first aid” to prevent harm while the main issues are resolved.
The judge emphasised that such temporary orders are not automatic and must be applied cautiously to avoid misuse of the court process. She granted the stay, with costs to be determined later.
