[2022] KEELRC 859 (KLR)
The court found that the application for stay of execution was made without inordinate delay, that the intended appeal is arguable, and that the appeal may be rendered nugatory if stay is not granted and the appeal succeeds. The court exercised its discretion to grant stay of execution, subject to the condition that...
Source-derived case information.
- Citation
- [2022] KEELRC 859 (KLR)
- Parties
- Appellant: Amuiri Investments Limited; Respondent: Benson Aswani
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Appeal E092 of 2021
- Procedural Posture
- Stay Application / Ruling on Application for Stay of Execution Pending Appeal
- Outcome
- application for stay of execution granted with conditions
- Judges
- MN Nduma
- Legal Topics
- Stay of Execution, Security for Decretal Sum, Appeal Procedure, Substantial Loss, Balance of Convenience
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Amuiri Investments Limited
Appellant
Benson Aswani
Respondent
Procedural Posture
Stay Application / Ruling on Application for Stay of Execution Pending Appeal
Legal Issues
- 1 Whether the applicant has satisfied the conditions for grant of stay of execution pending appeal.
- 2 Whether the appeal would be rendered nugatory if stay is not granted.
- 3 Whether security for the decretal sum should be ordered.
Ratio Decidendi
The court found that the application for stay of execution was made without inordinate delay, that the intended appeal is arguable, and that the appeal may be rendered nugatory if stay is not granted and the appeal succeeds. The court exercised its discretion to grant stay of execution, subject to the condition that the decretal sum be deposited in a joint interest-earning account in the names of the advocates for both parties within 30 days. Failure to comply would result in automatic vacation of the stay order. The court balanced the interests of both parties and directed that costs of the application be in the cause.
Court Disposition
application for stay of execution granted with conditions
Orders
- Stay of execution of the judgment delivered on 19th August, 2021 in Civil Suit No. 1904 of 2019 is granted pending hearing and determination of the intended appeal.
- The decretal sum shall be deposited in a joint interest earning account in the names of the advocates for the parties within 30 days from the date of this ruling.
Full Case Text
Judgment text and source record
43 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT
AT NAIROBI
ELRC APPEAL NO. E092 OF 2021
AMUIRI INVESTMENTS LIMITED...........................................APPLICANT/APPELLANT
VERSUS
BENSON ASWANI................................................................................................RESPONDENT
(Being an appeal for stay of execution pending the lodging, hearing and
determination of the intended appeal against the judgment of the
Honourable A.M. Obura (Mrs)delivered on 19th August, 2021
in Civil Suit No. 1904 of 2019)
RULING
1. The applicant in the Notice of Motion Application dated 6th September, 2021 prays for an order in the following terms:-
(1). Spent
(2) Spent
(3) Spent
4. That there be stay of execution of the Judgment delivered by
Hon. A.M. Obura (Mrs) on 19th August, 2021 in Civil Suit No. 1904 of 2019 pending hearing and determination of the appeal.
2. The nub of the grounds set out by the applicant is that the judgment for a sum of Kshs 1,222, 383,85 was granted in favour of the respondent and the applicant has filed an arguable appeal with high chances of success before this Court.
3. The judgment is attached to the application together with a memorandum of Appeal setting out grounds of intended Appeal.
4. The applicant prays that the appeal shall be rendered nugatory if the interim orders are not granted. That they are ready to provide security for decretal sum as may be directed by the Court. That the appellant shall suffer substantial loss since the decretal sum is large if the orders sought are not granted.
5. The respondent filed a replying affidavit dated 20th September, 2021 in which they state that though the appellant has filed memorandum of appeal, there is no evidence that they have requested for certified copy of proceedings and judgment in order to prosecute the appeal.
6. That the applicant has not demonstrated that the appeal would be rendered nugatory if stay is not granted. That if stay is granted the same should be on condition that the decretal sum plus assessed costs be placed in an interest earning account.
7. That the respondent has filed a cross appeal seeking a further sum of Kshs.46,000 not awarded by the trial Court. That the Court should balance the interest of the parties.
8. The Appellant filed a further affidavit stating that the application was filed timeously and there has been no delay at all. That they have made a request for certified copy of proceedings and judgment and have reached out to the advocates for the respondent with a view to have the decretal sum deposited in an interest earning account.
Determination
9. The parties have filed submissions which the Court has carefully considered together with the deposition by the parties.
10. The Court is well guided by the principles set out in Butt –vs- Rent Restrictions Tribunal (1982) KLR 417, in the exercise of the Court’s discretion to grant stay of execution as follows:-
(i) The discretion should be exercised in such a way as not to prevent an appeal.
(ii) The general principal in granting or refusing a stay is, if there is no other overwhelming hindrances, a stay must be granted so that an appeal may not be rendered nugatory should that appeal Court reverse the judge’s discretion.
(iii) A judge should not refuse a stay if there are good grounds for granting it merely because in his opinion, a better remedy may become available to the applicant at the end of the proceedings.
(iv) The Court in exercising its powers under Order XL1, rule 4(2) (b) of the Civil Procedure Rules, can order security upon application by either party or of its own motion.
11. On the facts of this case, the Court is satisfied that the application is not visited by inordinate delay. That the intended appeal is arguable and the appeal may be rendered nugatory if stay is not granted and the appeal is successful.
12. Accordingly, the application is granted for stay of execution of the judgment delivered on 19th August, 2021 in the lower Court by Hon. A.M. Obura (Mrs) pending the hearing and determination of the intended appeal.
13. Further, the respondent is directed to deposit the decretal sum in a joint interest earning account in the names of the advocates for the parties within 30 days from the date of this ruling failing which the order for stay shall be automatically vacated.
13. The costs of the application shall be in the cause.
DATED AND DELIVERED AT NAIROBI (VIRTUALLY) THIS 3RD DAY OF FEBRUARY, 2022.
Mathews N. Nduma
Judge
Appearance
Mr. Nyaga for Petitioner
Mrs Kang’ethe for Respondent
Ekale – Court Assistant