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Home»Business»Meera Investments Wins Key Court Safeguard as FBW Faces Shs500m Deadline
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Meera Investments Wins Key Court Safeguard as FBW Faces Shs500m Deadline

Katama CoprianBy Katama CoprianAugust 24, 20263 Mins Read
Post Views: 112,335

The High Court Commercial Division has temporarily halted enforcement of a USD741,250 judgment against FBW (U) Limited and its directors, Paul Moores and Nigel Tilling, in a case brought by Meera Investments Limited, a company owned by property businessman Dr Sudhir Ruparelia.

The stay of execution, however, comes with a strict financial condition. The applicants have been given 45 days to secure USD132,750, approximately Shs500 million, either by depositing the money in court or obtaining an unconditional and irrevocable on-demand bank guarantee from a reputable commercial bank licensed to operate in Uganda.

Justice Susan Odongo issued the ruling electronically on August 21, 2026, making it clear that failure to comply with the security requirement within the specified period would automatically cancel the stay.

If that happens, Meera Investments will be entitled to begin enforcing the entire USD741,250 judgment without having to return to court for another order.

The dispute stems from professional architectural and consultancy services connected to the expansion of Kabira Country Club. The parties had initially agreed on a professional fee of USD375,000, but disagreements later emerged over payment schedules, construction drawings and the manner in which design files were provided.

In a judgment delivered on April 3, 2026, the High Court found FBW and its directors liable and ordered them to pay several amounts. These included a USD132,750 refund, USD108,500 in special damages and USD500,000 in general damages, together with interest and legal costs.

Following the judgment, FBW sought a stay of execution while preparing to appeal the decision. The company argued that immediate enforcement could cause substantial financial damage and potentially threaten the continued operation of its architectural business.

Meera Investments, represented by its Director Dr Sudhir Ruparelia, opposed the application. The company argued that FBW had not met the requirements necessary for a stay and pointed out that it had already waited several years to recover the money involved in the dispute.

Justice Odongo nevertheless found that FBW and its directors had demonstrated a prima facie basis for pursuing an appeal. The judge also accepted that immediate enforcement of the judgment could expose the applicants to serious financial consequences that might be difficult to reverse.

However, the court separated the principal amount from the other damages awarded.

The USD132,750 was identified as money Meera Investments had actually paid in connection with the disputed construction milestones, making it the undisputed principal sum. By contrast, the USD108,500 in special damages and USD500,000 in general damages remain contested as part of the intended appeal.

As a result, the court did not require FBW to secure the entire USD741,250 judgment as a condition for the stay. Instead, the applicants were directed to secure the USD132,750 principal amount.

The order gives Meera Investments protection over the undisputed portion of the judgment while the wider legal dispute continues.

Should FBW fail to provide the required cash deposit or bank guarantee within the 45-day deadline, the temporary stay will lapse automatically. Meera Investments would then be free to pursue execution of the full judgment amount, including any applicable interest and costs.

The court also directed that the costs associated with the stay application will be determined alongside the outcome of the intended appeal.

The ruling therefore provides FBW with temporary relief from enforcement while preserving Meera Investments’ ability to recover the judgment if the applicants fail to meet the court-imposed security requirement.

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