[2018] KEELRC 1395 (KLR)
The court found that the application for stay of execution was filed after an inexcusable delay of three months, which is generally unreasonable and inexcusable. However, exercising judicial discretion to preserve the substratum of the pending appeal, the court allowed the application for stay on strict conditions:...
Source-derived case information.
- Citation
- [2018] KEELRC 1395 (KLR)
- Parties
- Claimant: Ephantus Githuku Ndungu; Respondent: Kenol Kobil Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 534 of 2014
- Procedural Posture
- Stay Application / Ruling on Application for Stay of Execution Pending Appeal
- Outcome
- Application for stay of execution allowed conditionally.
- Judges
- HS Wasilwa
- Legal Topics
- Stay of Execution, Substantial Loss, Security for Due Performance, Delay in Filing, Appeal Process
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Ephantus Githuku Ndungu
Claimant
Kenol Kobil Limited
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 application was filed without unreasonable delay.
- 3 Whether the applicant has demonstrated substantial loss if stay is not granted.
Ratio Decidendi
The court found that the application for stay of execution was filed after an inexcusable delay of three months, which is generally unreasonable and inexcusable. However, exercising judicial discretion to preserve the substratum of the pending appeal, the court allowed the application for stay on strict conditions: the applicant must release half of the decretal sum to the respondent/claimant and deposit the other half in an interest-earning account in the joint names of counsels within 60 days. Failure to comply would result in execution issuing. The court emphasized that the applicant did not sufficiently demonstrate substantial loss, and delay was evident, but the interests of justice...
Court Disposition
Application for stay of execution allowed conditionally.
Orders
- Stay of execution granted on condition that the applicant releases half the decretal sum to the respondent/claimant and deposits the other half in an interest-earning account in the joint names of counsels within 60 days.
- In default of compliance, execution to issue.
Full Case Text
Judgment text and source record
33 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT ATNAIROBI
CAUSE NO. 534 OF 2014
(Before Hon. Lady Justice Hellen S. Wasilwa on 24th July, 2018)
EPHANTUS GITHUKU NDUNGU............CLAIMANT
VERSUS
KENOL KOBIL LIMITED..................RESPONDENT
RULING
1. The Application before me is the Notice of Motion Application dated 21. 8.2017 that seeks orders for stay of this Court’s judgment/decree delivered on 31/5/2017 and all consequential orders arising thereto pending determination of an intended appeal.
2. The Applicant avers that he has already filed a Notice of Appeal and applied for typed proceedings to facilitate the lodging of the intended appeal.
3. The Application is supported by the Applicant’s supporting affidavit averring that if the orders sought are not granted, the Applicant will suffer substantial loss since the Respondent may proceed and execute the decree.
4. The Respondent/Claimant opposed this Application indicating that the Application was filed after an inordinate delay.
5. The judgement was delivered on 31/5/2017 and the Application was filed on 21. 8.2017 which the Claimant aver is a big delay and was only filed after the Claimants filed their bill of costs of 31. 7.2017 together with notice of taxation dated 3. 8.2017 indicating that the matter was due for taxation on 22. 8.2017.
6. They aver that the intention of the Applicant was to scuttle the taxation of the bill of costs.
7. The Claimants further aver that the Applicant’s Application does not meet the threshold of all three conditions for grant of such orders as prayed.
8. I have examined the averments of both parties plus submissions filed.
9. Order 42 rule 6(2) of the Civil Procedure Rules state as follows:-
“(2) No order for stay of execution shall be made under subrule (1) unless:
a. the court is satisfied that substantial loss may result to the applicant unless the order is made and that the application has been made without unreasonable delay; and
b. such security as the court orders for the due performance of such decree or order as may ultimately be binding on him has been given by the applicant.
10. From this order, the Court can only grant orders of stay if the above three conditions have been fulfilled. The Applicant must establish he stands to lose substantially if the orders are not granted. The Applicant must also establish that the Application has been made without unreasonable delay and also that he is willing to provide such sufficient security as may be ordered by Court.
11. Whereas the Applicant avers he stands to lose substantially if the Application is not granted, he has to demonstrate this. The Applicant submits that the award is quite substantial to the tune of Kshs.5,780,000= and it would be difficult to receive the money from the Claimant if the appeal is successful.
12. In this Court’s view, the fact that award is substantial alone is not a demonstration of substantial loss. The Applicant needs to establish how the substantial amount granted if at all will affect them. This I believe the Claimant failed to do.
13. On the same vein the Applicant came to Court seeking the orders sought after 3 months which indicate substantial delay.
14. In my view, the Applicants were jolted in seeing the orders sought just after the Claimant moved Court to tax his bill of costs. The delay of 3 months is unreasonable and inexcusable.
15. On security, the Applicants have submitted that they are willing to adhere to any orders as may be granted by Court.
16. Having considered the above arguments, I find that the Application was filed within inexcusable delay of 3 months. That notwithstanding I exercise my discretion and allow the Application for stay in order to preserve the substratum of the pending appeal. This is granted on condition that the Applicant releases ½ the decretal sum to the Respondent/Claimant and deposits the other ½ in an interest earning account held in the joint names of Counsels on record within 60 days. In default execution to issue.
Dated and delivered in open Court this 24th day of July, 2018.
HON. LADY JUSTICE HELLEN WASILWA
JUDGE
In the presence of:
Naima holding brief for Ochuch for Respondent/Applicant
Respondent/Claimant – Absent