[2003] KEHC 603 (KLR)
The court found that the defendant failed to provide sufficient security to justify varying the conditional stay of execution order previously issued. The alternative security offered—vehicle logbooks—was inadequate as only three logbooks were produced and there was no evidence that the vehicles were owned by the...
Source-derived case information.
- Citation
- [2003] KEHC 603 (KLR)
- Parties
- Plaintiff: Elegant Freighters Ltd; Defendant: Freight Consultants Ltd
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- ? 84 of 1994
- Procedural Posture
- Stay Application / Ruling on Application to Vary Terms of Stay of Execution Order
- Outcome
- application dismissed
- Judges
- JA Aluoch
- Legal Topics
- Stay of Execution, Security for Judgment, Variation of Orders
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Elegant Freighters Ltd
Plaintiff
Freight Consultants Ltd
Defendant
Procedural Posture
Stay Application / Ruling on Application to Vary Terms of Stay of Execution Order
Legal Issues
- 1 Whether the court should vary the conditional stay of execution order requiring deposit of the decretal sum in a joint interest earning account.
- 2 Whether alternative security in the form of vehicle logbooks is sufficient to warrant variation of the stay order.
Ratio Decidendi
The court found that the defendant failed to provide sufficient security to justify varying the conditional stay of execution order previously issued. The alternative security offered—vehicle logbooks—was inadequate as only three logbooks were produced and there was no evidence that the vehicles were owned by the defendant. The court held that the mere filing of an appeal does not entitle the applicant to an automatic stay of execution. Therefore, the application to vary the order was dismissed, and the original condition requiring deposit of the decretal sum in a joint interest earning account remained in force.
Court Disposition
application dismissed
Orders
- The application to vary the order for stay of execution granted on 20th June 2002 is dismissed with costs to the decree holder.
- The original condition for stay of execution—deposit of the entire decretal amount in a joint interest earning account operated by both advocates—remains in force.
Full Case Text
Judgment text and source record
29 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
CIVIL CASE NO. 84 OF 1994
ELEGANT FREIGHTERS LTD ………....…………. PLAINTIFF
VERSUS
FREIGHT CONSULTANTS LTD ………………. DEFENDANT
RULING
I delivered a judgment in this suit on 14th February 2002. I found judgment for the plaintiff against the defendant in the sum of Kshs.2,158,019. 48.
The defendant moved to court for a stay of execution under a certificate of urgency, though Mr. Mutiso, advocate.
The application was heard by Kuloba, J who granted an ex parte stay of execution order for 60 days pending an inter parte hearing.
Thereafter, the advocates took dates in the Registry, by consent, for the inter partes hearing of the application for stay of execution.
The application was tabled before me on 20th June 2002. On that day Mr. Mutiso for the defendant failed to appear in court. He sent an advocate who requested for adjournment on the grounds that Mr. Mutiso was appearing before another Judge, to wit, Hon. Justice Mbaluto.
I refused to grant the adjournment sought and proceeded with the hearing of the application.
Mr. Majanja who was representing the decree holder addressed the court saying that he did not object to the stay order being granted if the decretal sum could be deposited. Neither Mr. Mutiso nor the advocate sent by him were present in court at that time. I then made the following order,
“A stay of execution is granted on condition that the entire decretal amount is deposited in an interest earning account to be opened and operated by bo th advocates”.
Mr. Mutiso moved the court once more ex parte under a certificate of urgency.
The application was again heard by Hon. Justice Kuloba who granted an ex parte stay of execution order for 90 days.
At the expiry of the 90 days, Mr. Mutiso for the Judgment Creditor filed an application for variation of the terms of the stay order I issued on 20th June 2002. The application was to be heard on 3rd April 2003, Mr. Mutiso was not present but sent an advocate who asked for adjournment as Mr. Mutiso was in the Court of Appeal. I granted the adjournment because I considered the reason credible as I was given the number of the Appeal he was arguing in the Court of Appeal.
The application for variation was subsequently amended to read, at para 3 (a),
“That the Honourable court’s order of 20 th June 2002 be varied so as to omit the requirement that the defendant deposits the decretal sum in a joint interest earning account BUT instead do give directions on the stay of execution”.
In court during the hearing of the application for variation of the terms of the stay of execution order, Mr. Mutiso submitted that the order requiring the defendant company to deposit the decretal sum would affect the operations of the company adversely. He submitted further that he has alternative security in the form of log books of various vehicles.
Mr. Majanja for the decree holder rejected this saying that non of the vehicles were in the defendant’s name.
I granted adjournment at my own instance to enable Mr. Mutiso to bring to court the valuations of the vehicles in question.
He brought such valuation at the next hearing of the application, however, only 3 copies of the logbooks were available in court, though valuations of 6 vehicles were given.
Though I was willing to vary the stay of execution order I made on 20th June 2002, I find that the Judgment Debtor has failed to provide sufficient security to enable the court to vary its earlier conditional order for stay. The Judgment Debtor told the court through Mr. Mutiso that he has filed an appeal in the Court of Appeal, however I do not find that that fact alone entitles him to an automatic order for stay of execution.
I therefore refuse to vary the order for stay of execution I granted on 20. 6.2002. The application seeking to vary that order is hereby dismissed with costs to the Decree Holder.
Dated at Nairobi this 2nd day of October 2003.
JOYCE ALUOCH
JUDGE