[2020] KEHC 4690 (KLR)
The court found that the appeal had been conclusively determined in favour of the appellants and that the funds were deposited solely as a condition for stay of execution pending the appeal. The respondents' argument for continued retention of the funds as security for costs in the lower court was deemed speculative...
Source-derived case information.
- Citation
- [2020] KEHC 4690 (KLR)
- Parties
- Appellant: Francisco Kabira Gathara; Appellant: Elena Wachera Kariuki; Respondent: John Mukiria Waweru; Respondent: Grace Njeri Kimani
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Appeal 755 of 2016
- Procedural Posture
- Civil Appeal / Post Judgment Application for Release of Security Deposit
- Outcome
- Application allowed; funds to be released to appellants; no order as to costs.
- Judges
- CW Githua
- Legal Topics
- Stay of Execution, Security for Costs, Release of Funds
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Francisco Kabira Gathara
Appellant
Elena Wachera Kariuki
Appellant
John Mukiria Waweru
Respondent
Grace Njeri Kimani
Respondent
Procedural Posture
Civil Appeal / Post Judgment Application for Release of Security Deposit
Legal Issues
- 1 Whether the appellants are entitled to the release of KShs.3,617,896 deposited as security for stay of execution now that the appeal has been determined in their favour.
- 2 Whether the respondents' request to retain the funds as security for costs in the lower court suit is justified.
Ratio Decidendi
The court found that the appeal had been conclusively determined in favour of the appellants and that the funds were deposited solely as a condition for stay of execution pending the appeal. The respondents' argument for continued retention of the funds as security for costs in the lower court was deemed speculative and without legal basis, as the outcome of the lower court suit was uncertain and unrelated to the concluded appeal. The court held that there was no justification for further retention of the funds and allowed the application for their release.
Court Disposition
Application allowed; funds to be released to appellants; no order as to costs.
Orders
- The sum of KShs.3,617,896 deposited in court on 14th July 2017 by the appellants as a condition for stay of execution pending appeal shall be released to the appellants.
- There shall be no order as to costs.
Full Case Text
Judgment text and source record
24 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYAAT NAIROBI
CIVIL APPEAL NO. 755 OF 2016
FRANCISCO KABIRA GATHARA...............1ST APPELLANT
ELENA WACHERA KARIUKI.....................2ND APPELLANT
VERSUS
JOHN MUKIRIA WAWERU.................... 1ST RESPONDENT
GRACE NJERI KIMANI ......................... 2ND RESPONDENT
RULING
1. The appellants approached this court vide a Notice of Motion dated 14th February 2020 seeking that a sum of KShs.3,617,896 they deposited in court on 14th July 2017 as a condition for stay of execution pending hearing and disposal of the appeal be released to them.
2. The application is premised on grounds that the appeal has now been determined and it is only fair that the money be released to them.
3. The application is opposed through a replying affidavit sworn by the 1st respondent on 26th May 2020. While admitting that the appellants deposited the aforesaid monies in court pursuant to a condition for grant of stay of execution pending appeal, the 1st respondent contended that the money should continue being held as security for costs since the suit in the lower court was still pending and the respondents are apprehensive that when it is determined, the appellants may not be in a position to pay the decretal amount.
4. The application was argued orally before me on 24th June 2020. Learned counsel appearing for the parties namely, Mr. Kariuki for the applicants and Mr. Wambua for the respondents exclusively relied on the averments made in the affidavits supporting and opposing the motion.
5. I have considered the application and the affidavits on record. I have also perused the court record. The record confirms that indeed the appeal was heard and determined in the appellants’ favour on 19th December 2019. It is not disputed that the appellants’ deposited the money in question as a precondition for stay of execution pending disposal of the appeal. Now that the appeal has been determined, I agree with the appellants that no good reason exists to justify further retention of the money by this court.
6. In my view, the respondents’ opposition to the motion is, to say the least, unfounded. The trial court’s proceedings are separate and distinct from the appeal that has now been determined by this court and in any event, the respondents’ apprehension that the appellants may not be in a position to pay the decretal amount when the suit in the lower court is finally determined lacks any basis and is purely speculative. It presupposes that the suit will be determined in the respondents’ favour while the truth is that none of the parties or even this court, can foretell the outcome of the suit.
7. In view of the foregoing, I find merit in the motion and it is hereby allowed in terms of prayer 1 with no orders as to costs.
It is so ordered.
DATED, SIGNED and DELIVERED at NAIROBI this 30th day of June 2020.
C. W. GITHUA
JUDGE
In the presence of:
Mr. Kariuki for the appellants
Mr. Wambua for the respondents
Ms Mwinzi: Court Assistant