KAMPALA — The High Court Commercial Division has granted architectural firm FBW (U) Limited and two of its directors a temporary reprieve from enforcement of a USD741,250 (about Shs2.7 billion) judgment awarded to Meera Investments Limited.
The court, however, attached conditions to the stay, requiring FBW and its directors, Paul Moores and Nigel Tilling, to secure USD132,750 (about Shs446 million) within 45 days.
In a ruling delivered electronically on August 21, Justice Susan Odongo ordered the applicants to either deposit the money in court or provide an unconditional, irrevocable and on-demand bank guarantee from a reputable commercial bank licensed in Uganda.
The judge warned that failure to provide the required security within the stipulated period would automatically lift the stay, allowing Meera Investments to proceed with execution of the earlier judgment.
The dispute stems from a long-running disagreement over architectural and consultancy services provided for the planned expansion of Kabira Country Club.
Court grants stay pending appeal
FBW had applied for a stay of execution pending an intended appeal, arguing that immediate enforcement of the judgment could cause substantial financial loss and threaten the survival of its architectural business.
Meera Investments, owned by businessman Dr Sudhir Ruparelia, opposed the application, arguing that FBW had not satisfied the requirements for a stay and that the company had already been kept from recovering its money for a considerable period.
Justice Odongo nevertheless found that FBW had demonstrated an arguable basis for an appeal and that immediate execution could cause serious harm to the applicants.
The court, however, declined to make the stay unconditional.
Instead, it required security equivalent to the USD132,750 that Meera had paid to FBW for disputed construction milestones.
Background to the dispute
The original consultancy agreement involved professional fees of USD375,000 for architectural services connected to the expansion of Kabira Country Club.
The disagreement later centred on payment milestones, construction drawings and the format in which the architectural files were supplied.
In a judgment delivered on April 3, 2026, Justice Odongo found FBW liable and ordered it to refund USD132,750, pay USD108,500 in special damages and USD500,000 in general damages, together with interest and costs.
Court records indicate that Meera had complained that FBW failed to provide usable, editable Computer-Aided Design (CAD) drawings needed for the project, forcing the company to engage replacement consultants.
The court found that the withholding of the technical deliverables amounted to a fundamental breach of the consultancy agreement.
What happens next
The latest ruling does not overturn the April judgment. Instead, it temporarily prevents its execution while FBW pursues its intended appeal.
The firm now has 45 days to meet the security requirement.
If it fails to deposit the USD132,750 or provide the required bank guarantee, Meera Investments will be free to pursue execution of the judgment without seeking another order from court.
The costs of the stay application will be determined alongside the outcome of the intended appeal.