RULING OF THE COURT
This is an application under Rule 5 (2) (b) of the Court of Appeal Rules (Rules) for an order of stay of execution of the judgment of the superior court (Kasango J) delivered on 14th December, 2005 pending the hearing and determination of the intended appeal.
In about 1995 a company known as “3A’s Limited” purchased L.R. No. 209/354/11 with the intention of erecting 16 Villas for sale on the plot. The three respondents collectively financed the project. The project fell through and the three respondents in exercise of mortgagee’s statutory power of sale sold the property to M/s. Retreat Villas Limited, the applicant herein. The sale was financed by the respondents who collectively advanced a total of Shs.72,000,000/= loan to the applicant to purchase and complete the construction of the Villas for sale. The loan was secured by the mortgage in favour of 2nd and 3rd respondents and a second mortgage in favour of the 1st respondent. The facility was also secured by pers…