This matter arose from a labour dispute before the Industrial Court in which George Johnson Ojok and 87 others sought an order requiring Torres Advanced Enterprise Solution LLC to deposit UGX 1,000,000,000 as security pending determination of the main labour dispute.
The applicants argued that the respondent was a foreign company whose major contract in Uganda was due to end, and that any award in their favour could be difficult to enforce if the respondent left the jurisdiction. The respondent opposed the application, stating that it had other business engagements in Uganda, assets, vehicles, an operational office, and bank accounts.
The Industrial Court considered the purpose of security pending determination of a suit, including the need to protect a claimant’s ability to enforce a future award while also safeguarding the respondent from unnecessary interruption of business. The Court held that the respondent had not provided sufficient evidence to satisfy the Court that its local contracts, assets, or bank accounts would be adequate to meet any decree that might later be passed.
The Court allowed the application and ordered the respondent to furnish security in the form of either UGX 150,000,000 in cash or a bank guarantee of the same amount. The respondent was also required to give an undertaking concerning interest-related damages in the event the security order was later found not to have been justified.
The case is relevant to civil litigation, labour-related disputes, security for due performance, enforcement risk, foreign companies, and preservation of possible future awards.
Role / Representation
Kashillingi, Rugaba & Associates represented the respondent, Torres Advanced Enterprise Solution LLC, through Mr. Hussein Kashillingi.