High Court Clears Way for Pramukh Steel to Recover Sh1.5 Billion from Roko Construction

The High Court in Kampala has dismissed an application by Roko Construction Company, clearing the path for Pramukh Steel Limited to recover over Sh1.5 billion in unpaid dues. Justice Dr. Ginamia Melody Ngwatu, in a ruling delivered today, rejected Roko’s bid to block the execution of an earlier court order, citing the construction giant’s failure to meet the legal requirements for a stay of execution.

Justice Ngwatu’s decision comes as a significant blow to Roko, which had sought to halt the payment pending an appeal. “In consideration of the submissions made by both counsel for the applicant and the respondent, and the law about applications for stay of execution pending appeal, this court is not convinced that the applicant has proved sufficient grounds,” she ruled.

The judge underscored that Roko had not demonstrated that it would suffer “irreparable harm” if the execution proceeded, nor did it prove that Pramukh Steel Limited was financially incapable of refunding the money should Roko’s appeal ultimately succeed.

Furthermore, Justice Ngwatu highlighted a critical flaw in Roko’s application: the absence of a memorandum of appeal or proof of having applied for a certified record of proceedings. “Without a memorandum of appeal, this court is unable to establish the likelihood of success of the appeal or whether the Court of Appeal would reasonably come to a different conclusion from the trial court,” she stated.

“The applicant has not demonstrated that the appeal has a reasonable chance of success. This application fails and is hereby dismissed with costs to the respondent,” Justice Ngwatu concluded, effectively paving the way for Pramukh Steel to enforce the judgment.

The legal battle stems from a 2020 lawsuit where Pramukh Steel Limited sued Roko Construction Company to recover nearly $400,000 for unpaid construction materials supplied. Court records revealed that Roko had only paid $51,671 out of a total debt of $450,850, leaving a balance of $399,156.

In 2024, Justice Cornelia Sabiiti Kakooza ruled in favour of Pramukh Steel, ordering Roko to pay the outstanding amount along with a 10% annual interest until the full settlement. Following this ruling, Pramukh moved to enforce the judgment earlier this year. Roko responded by filing the now-dismissed stay of execution application, arguing that its pending appeal had a high chance of success and that immediate execution would lead to significant financial loss.

With Justice Ngwatu’s ruling, Pramukh Steel Limited is now free to proceed with the recovery of the awarded sum from Roko Construction Company, bringing a significant development to this long-standing commercial dispute.