[2023] KEHC 25526 (KLR)
The court found that the appellants had satisfied the requirements for stay of execution pending appeal as set out in Order 42 Rule 6(2) of the Civil Procedure Rules. The application was filed within a reasonable period, the appellants demonstrated willingness to provide security by way of a bank guarantee, and the...
Source-derived case information.
- Citation
- [2023] KEHC 25526 (KLR)
- Parties
- Appellant: Sehm Atulo Angaya; Appellant: Isack Ashivara; Respondent: Ruth Mbula Muema; Respondent: Kaiva Muli
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Appeal E878 of 2022
- Procedural Posture
- Civil Appeal / Ruling on Application for Stay of Execution Pending Appeal
- Outcome
- Application for stay of execution pending appeal allowed subject to conditions.
- Judges
- JN Mulwa
- Legal Topics
- Stay of Execution, Security for Due Performance, Substantial Loss, Appeal Procedure
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Sehm Atulo Angaya
Appellant
Isack Ashivara
Appellant
Ruth Mbula Muema
Respondent
Kaiva Muli
Respondent
Procedural Posture
Civil Appeal / Ruling on Application for Stay of Execution Pending Appeal
Legal Issues
- 1 Whether the appellants have satisfied the conditions for grant of stay of execution pending appeal under Order 42 Rule 6 of the Civil Procedure Rules.
- 2 What constitutes sufficient security for the due performance of the decree in the circumstances of this case.
Ratio Decidendi
The court found that the appellants had satisfied the requirements for stay of execution pending appeal as set out in Order 42 Rule 6(2) of the Civil Procedure Rules. The application was filed within a reasonable period, the appellants demonstrated willingness to provide security by way of a bank guarantee, and the respondents did not strictly oppose the stay but sought partial release of the decretal sum. The court determined that releasing 50% of the decretal sum to the respondents and securing the remaining 50% by a bank guarantee constituted sufficient security for the due performance of the decree. The court also ordered the appellants to pay costs of the application and to file the...
Court Disposition
Application for stay of execution pending appeal allowed subject to conditions.
Orders
- Appellants to release KES 2,351,775 (50% of the decretal sum) to the respondents within 45 days.
- KES 1,401,890 deposited in court as security to be released to the respondents; appellants to top up KES 949,885 to make up 50% within 45 days.
Full Case Text
Judgment text and source record
26 paragraphs
Angaya & another v Muema & another (Suing as the administrators and legal representatives of the Estate of Brian Mwanza Muli (Deceased)) (Civil Appeal E878 of 2022) [2023] KEHC 25526 (KLR) (16 November 2023) (Ruling)
Neutral citation: [2023] KEHC 25526 (KLR)
Republic of Kenya
In the High Court at Nairobi (Milimani Law Courts)
Civil Appeal E878 of 2022
JN Mulwa, J
November 16, 2023
Between
Sehm Atulo Angaya
1st Appellant
Isack Ashivara
2nd Appellant
and
Ruth Mbula Muema
1st Respondent
Kaiva Muli
2nd Respondent
Suing as the administrators and legal representatives of the Estate of Brian Mwanza Muli (Deceased)
Ruling
1. The trial court’s Judgment was delivered on September 30, 2022 in Milimani CMCC No. 1058 of 2020 awarding the sum of Kes 4,703,550/= plus interest. The appellants being dissatisfied lodged an appeal within the statutory period. By the application dated November 11, 2022, the appellant seeks orders of stay of execution pending hearing and determination of the Appeal. In have considered the supporting affidavit.
2. The appellants are ready and willing to offer security in terms of a Bank guarantee, to be issued by Family Bank Limited. The supporting affidavit was sworn by one Isack Ashivara the 2nd Appellant. Provisions of order 42 rule 6 of the Civil Procedure Rules have been invoked.
3. The respondent is not strictly opposed to the orders sought as reading the replying affidavit sworn on March 29, 2023 by the 1st respondent confirms. The decretal sum is Kes 4,703,550/- as confirmed by the respondent who has urged the Court ought to direct that half of the decretal sum be released to the respondent and the other half be deposited as security as the court may direct.
4. By the above, the only issue for court’s determination is the sufficient security for the due performance of the decree.Order 42 rule 6(2) Civil Procedure Rules provides the condition that an appellant ought to comply with for grant of a stay order pending appeal being trite that an appeal des no operate as a stay if the Shell Ltd v Kiburu & another (1986) KLR 410; Tiny Bees Credit (K) Ltd v Patrick Macharia Nderitu & another (2022) eKLR among others.An applicant must show that: -a.The application was filed within reasonable period.b.That substantial loss shall be suffered by the applicant if the order is denied and the appeal may be rendered nugatory; andc.Sufficient security for the due performance of the decree is provided.
5. The appellant has proposed security by way of a bank guarantee of 50% of the decretal sum. In the case of National Industrial Credit Bank Ltd v Aquino’s Francis Wasike and another (2006) eKLR, the court rendered that it is upon the applicant to prove substantial loss either through difficulty in satisfying the decree or loss occasioned by the inability by the adverse party to refund if the appeal succeeds.
6. I am satisfied that the security offered by the appellant in my view is sufficient. I therefore allow the application dated 11/11/2022 subject to the appellant.a.Releasing to the respondent Kes 2,351,775. 00 being 50% of the decretal sum/=within 45 days; as hereunder:b.The sum of Kes 1,401,890/- deposited into court as security by the appellant shall be released to the respondent. The appellant shall topup, by paying to the respondent a further sum of Kes 949,885/= to make the 50% within the time frame stated at (a) above.c.The balance (50%) being Kes 2,351,775/= shall be secured a bank guarantee from Family Bank Limited in favour of the respondent’s advocates J. K. Mwalimu and Company Advocates within 45 days.d.In default of (a), (b) and (c) above, the stay orders shall lapse automatically.e.The record of appeal shall be filed and served within 45 days.f.The applicants shall pay costs of the application to the respondents.g.The record of appeal shall be filed within 60 days. and directions to be taken on 29/2/2024.
DATED, DELIVERED AND SIGNED IN NAIROBI THIS 16TH DAY OF NOVEMBER, 2023. JANET MULWAJUDGE