[2021] KEHC 6799 (KLR)
The court found that the appellant had demonstrated a plausible reason for its inability to comply with the previous orders requiring deposit of the decretal sum, namely the financial impact of the Covid-19 pandemic. The respondent did not controvert this explanation. The court exercised its discretion to allow the...
Source-derived case information.
- Citation
- [2021] KEHC 6799 (KLR)
- Parties
- Appellant: Chai Housing Co-operative Savings & Credit Society Limited; Respondent: Marie Wambu Thande
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Appeal 495 of 2018
- Procedural Posture
- Civil Appeal / Ruling on Application for Enlargement of Time and Provision of Security
- Outcome
- appellant's motion allowed
- Judges
- JK Sergon
- Legal Topics
- Stay of Execution, Security for Decretal Sum, Extension of Time, Bank Guarantee
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Chai Housing Co-operative Savings & Credit Society Limited
Appellant
Marie Wambu Thande
Respondent
Procedural Posture
Civil Appeal / Ruling on Application for Enlargement of Time and Provision of Security
Legal Issues
- 1 Whether the appellant should be granted further enlargement of time to provide security for the decretal sum.
- 2 Whether the appellant should be allowed to provide a bank guarantee instead of a cash deposit as security for the due performance of the decree.
Ratio Decidendi
The court found that the appellant had demonstrated a plausible reason for its inability to comply with the previous orders requiring deposit of the decretal sum, namely the financial impact of the Covid-19 pandemic. The respondent did not controvert this explanation. The court exercised its discretion to allow the appellant to provide a bank guarantee from Cooperative Bank of Kenya for the decretal sum as security for the due performance of the decree, in lieu of a cash deposit. The court granted the appellant 21 days to provide the bank guarantee, failing which execution would issue without further reference to the court. Costs were ordered to abide the outcome of the appeal.
Court Disposition
appellant's motion allowed
Orders
- The appellant is granted 21 days from the date hereof to provide a bank guarantee for Ksh. 1,007,000 from Cooperative Bank of Kenya Ltd as security for the due performance of the decree as a condition for the continued stay of execution pending appeal.
- In default, execution to issue without further reference to this court.
Full Case Text
Judgment text and source record
29 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
CIVIL APPEAL NO. 495 OF 2018
CHAI HOUSING CO-OPERATIVE SAVINGS
& CREDIT SOCIETYLIMITED..................................................APPELLANT
VERSUS
MARIE WAMBU THANDE.....................................................RESPONDENT
RULING
1) The appellant took out the motion dated 4th March 2021, whereof it sought for the enlargement of time within which it can provide the security of ksh.1. 007,000/= for a period of thirty (30) days.
2) The appellant also beseeched this court to allow it to provide a bank guarantee for the aforestated amount from the Cooperative Bank of Kenya as security for the decretal sum. The motion is supported by the affidavit of Peter Wachira. When served, the respondent filed a replying affidavit she swore to oppose the motion.
3) I have considered the grounds stated on the face of the motion plus the facts deponed in the rival affidavits. The appellant has averred that on 8th October 2020, this court granted it an order for stay of execution on condition that it deposits the decretal sum of kshs.1,007,000/= in an interest earning account in the joint names of the advocates appearing in this matter within 30 days from the date of the order.
4) The applicant avers that it has been unable to make the deposit because it was hampered by the outbreak of Covid 19 pandemic. The appellant further pointed out that this court also extended the period by 30 days from 11th December 2020 to enable it make the deposit but it has been unable to raise the amount until recently that it secured a bank guarantee.
5) The respondent urged this court to find that the applicant’s motion amounts to an abuse of the court process and is without merit. The respondent pointed out that the applicant has made numerous applications for extension of time to provide security for the due performance of the decree with no intention of doing so but with intent to procrastinate the conclusion of the dispute.
6) The record shows that the applicant was granted an order for stay of execution of the decree pending appeal on condition that it deposits the decretal sum of ksh.1,007,000/= in an interest earning account in the joint names of the advocates appearing in this appeal within 30 days from the date of the order.
7) It is also apparent from the record that the appellant successfully sought for extension of time by 30 days from 5th November 2020 to make the deposit. In both occasions the appellant did not make the deposit. The appellant is now before this court seeking to be allowed to provide a bank guarantee instead of making a cash deposit.
8) The appellant has stated that it has been hampered by the outbreak of Covid 19 pandemic from complying with the court order.
9) The respondent did not controvert this averment which is to the effect that the appellant’s financial ability was affected by the outbreak of the covid 19 pandemic.
10) I am convinced the ground advanced by the appellant to is plausible thus entitling it to benefit from this court’s discretion.
11) In the end I allow the appellant’s motion giving rise to issuance of the following orders
i. The appellant/applicant is granted 21 days from the date hereof to provide a bank guarantee for ksh.1,007,000/= from Cooperative Bank of Kenya Ltd as security for the due performance of the decree as a condition for the continued subsistence of the order for stay of execution of the decree pending appeal.
ii. In default execution to issue without further reference to this court.
iii. Costs to abide the outcome of this appeal.
Dated, Signed and Delivered online via Microsoft Teams at Nairobi this 21st day of May, 2021.
…….….…………….
J. K. SERGON
JUDGE
In the presence of:
…………………………………. for the Appellant/Applicant
…………………………………. for the Respondent