Business
FBW Given 45 Days to Secure Shs500m as Meera Seeks Enforcement of Kabira Court Award
KAMPALA — FBW (U) Limited and its directors have been given 45 days to secure about Shs500 million if they are to maintain a temporary stay against enforcement of a multimillion-dollar judgment awarded to Meera Investments Limited over the delayed expansion of Kabira Country Club.
The High Court Commercial Division issued the condition in a ruling delivered electronically on August 21, 2026, granting FBW and its directors, Paul Moores and Nigel Tilling, temporary protection from execution of the judgment pending their intended appeal.
Justice Susan Odongo ordered the applicants to secure USD132,750, equivalent to about Shs500 million, either by depositing the money in court or providing an unconditional and irrevocable bank guarantee from a reputable commercial bank licensed in Uganda.
The court warned that failure to meet the condition within the 45-day period would automatically lift the stay, allowing Meera Investments to proceed with execution of the entire judgment without seeking another court order.
The latest development is linked to a judgment delivered on April 3, 2026, in which the Commercial Division found FBW and the two architects liable for breaching contractual and professional obligations owed to Meera Investments, a company associated with businessman Sudhir Ruparelia.
The original dispute arose from an architectural and consultancy agreement for the expansion of Kabira Country Club in Bukoto, Kampala. The project was initially agreed upon in 2012 before being revived in 2018 with revised plans and timelines.
According to the court record, Meera Investments accused FBW of failing to provide a complete and usable construction drawings package, including editable Computer-Aided Design files needed by engineers, contractors and other professionals involved in the project.
The court ultimately ordered the defendants to refund USD132,750 received from Meera, pay USD108,500 in special damages and USD500,000 in general damages, in addition to interest and costs. The total judgment was reported at about USD741,250 before applicable interest and costs.
FBW later applied for a stay of execution as it prepared to challenge the judgment on appeal. The applicants argued that immediate enforcement could cause substantial and potentially irreversible damage to their business.
Justice Odongo accepted that the applicants had demonstrated a prima facie right to pursue an appeal and that immediate execution could expose them to serious financial consequences. However, the judge declined to grant an unconditional stay.
Instead, the court separated the undisputed principal amount from the damages that remain contested in the intended appeal.
The USD132,750 refund was treated as the amount Meera had actually paid under the disputed construction milestones, while the special and general damages remain subject to challenge. The court therefore required security for the principal amount rather than the entire judgment sum.
The original judgment had found that FBW fundamentally breached the consultancy agreement by failing to meet agreed obligations concerning construction drawings and by demanding payments before construction had commenced. The court also rejected arguments that the individual architects could avoid professional responsibility by relying on the corporate structure of the firm.
The dispute had significant implications for the redevelopment of Kabira Country Club, with Meera Investments telling court that delays forced it to engage alternative consultants and contributed to an extended delay in the project.
The latest ruling therefore gives FBW temporary breathing space, but places a clear financial condition on that protection.
Unless the Shs500 million security is provided within the stipulated 45 days, Meera Investments will be free to resume execution proceedings against the judgment, including the disputed damages, interest and costs.
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