[2021] KEHC 4561 (KLR)
The court found that the applicants had demonstrated willingness to provide security for the due performance of the decree by offering a bank guarantee for the decretal amount. The court held that this offer, coupled with the absence of opposition to the stay application, satisfied the requirements for granting a...
Source-derived case information.
- Citation
- [2021] KEHC 4561 (KLR)
- Parties
- Appellant: Lucy Wangari Mwangi; Appellant: Kihoro Humphrey; Respondent: David Ndirangu Gitau
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Appeal E224 of 2021
- Procedural Posture
- Civil Appeal / Ruling on Application for Stay of Execution Pending Appeal
- Outcome
- Application for stay of execution pending appeal allowed on condition.
- Judges
- SJ Chitembwe
- Legal Topics
- Stay of Execution, Security for Due Performance, Appeal Process, Decretal Amount
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Lucy Wangari Mwangi
Appellant
Kihoro Humphrey
Appellant
David Ndirangu Gitau
Respondent
Procedural Posture
Civil Appeal / Ruling on Application for Stay of Execution Pending Appeal
Legal Issues
- 1 Whether the applicants are entitled to a stay of execution of the judgment pending appeal.
- 2 Whether the offer of a bank guarantee as security is sufficient to warrant a stay of execution.
- 3 What conditions should be imposed for the grant of stay of execution.
Ratio Decidendi
The court found that the applicants had demonstrated willingness to provide security for the due performance of the decree by offering a bank guarantee for the decretal amount. The court held that this offer, coupled with the absence of opposition to the stay application, satisfied the requirements for granting a stay of execution pending appeal. The court exercised its discretion to order that a bank guarantee for the full decretal amount be provided within a specified period, failing which the stay would lapse. The decision was guided by the principle that security is intended to ensure the respondent can recover the decretal sum if the appeal fails, not to punish the applicants or deny...
Court Disposition
Application for stay of execution pending appeal allowed on condition.
Orders
- Applicants to provide a bank guarantee for Kshs. 1,203,550 within 45 days from the date of the ruling.
- If the bank guarantee is not provided within 45 days, the stay of execution pending appeal shall stand vacated.
Full Case Text
Judgment text and source record
26 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
CIVIL APPEAL NO. E224 OF 2021
LUCY WANGARI MWANGI........................1ST APPELLANT
KIHORO HUMPHREY............................... 2ND APPELLANT
VERSUS
DAVID NDIRANGU GITAU............................. RESPONDENT
RULING
The applicants filed a Notice of Motion dated 23rd April, 2021 seeking for the following orders;
1. Spent
2. Spent
3. THAT this Honourable Court be pleased to stay any further proceedings in Milimani Chief Magistrate’s Court Civil Case No. 3330 of 2019 and in particular execution of judgment delivered on 16th April, 2021 pending the hearing and determination of the Appeal herein.
4. THAT the costs of this Application be in the cause.
5. Any other and/or further orders that this Honourable Court deems fit to grant.
The application is premised on the grounds thereunder and the affidavit of Kevin Ngure sworn on 23rd April, 2021. In opposition, the Respondent filed a replying affidavit sworn on 25th April, 2021. The applicant being dissatisfied with the Judgment of Hon. D.O. Mbeja (Mr.) P.M in Milimani Chief Magistrate’s Court Civil Case No. 3330 of 2019; David Ndirangu Gitau vs Lucy Wangari Mwangi & Kihoro Humpreyseeks to appeal against the award of general damages.
On 4th July, 2021 when the file came before this court for hearing Mr. Mandela for the applicant confirmed that the parties were in the process of negotiation and sought for more time. Later on 14th July 2021, Miss Oseko for the respondent confirmed that the application for stay is not opposed but had not agreed on the terms of the stay. Mr. Mandela for the applicant informed the court that the applicant is willing to provide a bank guarantee.
Analysis/Determination:
The purpose of security was well captured by Gikonyo J. in the case of Arun C Sharma vs. Ashana Raikundalia t/a Rairundalia & Co. Advocates [2014]eKLR where the court stated that:
“The purpose of the security needed under Order 42 is to guarantee the due performance of such decree or order as may ultimately be binding on the applicant. It is not to punish the judgment debtor...Civil process is quite different because in civil process the judgment is like a debt hence the applicants become and are judgment debtors in relation to the respondent. That is why any security given under Order 42 rule 6 of the Civil Procedure Rules acts as security for due performance of such decree or order as may ultimately be binding on the applicants. I presume the security must be one which can serve that purpose.”
The applicants have indicated their readiness to furnish a bank guarantee as security for the due performance of the decree. This is a mark of good faith that the application for stay is not meant to deny the Respondent the fruits of his judgment. In Focin Motorcycle Co. Limited vs. Ann Wambui Wangui & another [2018] eKLR, it was stated that:
“My view is that it is sufficient for the applicant to state that he is ready to provide security or to propose the kind of security but it is the discretion of the Court to determine the security. The Applicant has offered to provide security and has therefore satisfied this ground for stay.”
I agree with the applicants and direct that they do provide a bank guarantee for Kshs. 1,203,550 being the total decretal amount within 45 days from the date of this ruling, failing which the stay of execution pending appeal stand vacated. Costs of the application shall abide the outcome of the appeal.
Dated and signed at Nairobi this 29th day of July, 2021
..............................
S. CHITEMBWE
JUDGE