In a large skillet, saute onion and celery in oil until tender. Add garlic; cook 1 minute longer. Cool to room temperature.
In a large bowl, combine the eggs, ketchup, bread crumbs, parsley, salt, pepper, nutmeg and onion mixture. Crumble beef over mixture and mix well.
Shape into a loaf. Place in a greased 11-in. x 7-in. baking dish. Bake, uncovered, at 350° for 1 to 1-1/4 hours or until no pink remains and a meat thermometer reads 160°.
Meanwhile, combine sauce ingredients in an ungreased 8-in. square baking dish. Bake, uncovered, at 350° for 1 hour or until thickened, stirring occasionally. Let meat loaf stand for 10 minutes before slicing; serve with tomato sauce. Yield: 8 servings.