[2019] KEHC 1389 (KLR)
The court found that the appellant had demonstrated readiness to provide security for the due performance of the decree by offering to deposit part of the decretal sum. Balancing the interests of both parties, the court held that a stay of execution was justified on condition that the appellant deposits Kshs. 4...
Source-derived case information.
- Citation
- [2019] KEHC 1389 (KLR)
- Parties
- Appellant: Pacis Insurance Limited; Respondent: Kenya International Co. Ltd
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Appeal 496 of 2019
- Procedural Posture
- Civil Appeal / Stay of Execution Application Pending Appeal
- Outcome
- conditional stay of execution granted pending appeal
- Judges
- A Mbogholi-Msagha
- Legal Topics
- Stay of Execution, Security for Decretal Sum, Appeal Procedure
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Pacis Insurance Limited
Appellant
Kenya International Co. Ltd
Respondent
Procedural Posture
Civil Appeal / Stay of Execution Application Pending Appeal
Legal Issues
- 1 Whether a stay of execution should be granted pending the hearing and determination of the appeal.
- 2 What security should be provided for the due performance of the decree.
Ratio Decidendi
The court found that the appellant had demonstrated readiness to provide security for the due performance of the decree by offering to deposit part of the decretal sum. Balancing the interests of both parties, the court held that a stay of execution was justified on condition that the appellant deposits Kshs. 4 million in an interest-earning joint account of the parties' advocates, and secures the balance by a bank guarantee. This approach ensures the respondent is protected while preserving the appellant's right to appeal. Failure to comply with these conditions within 30 days would result in execution proceeding.
Court Disposition
conditional stay of execution granted pending appeal
Orders
- Stay of execution of the lower court judgment is granted pending appeal, subject to the appellant depositing Kshs. 4 million in an interest-earning joint account in the names of the parties' advocates within 30 days.
- The balance of the decretal sum shall be secured by a bank guarantee.
Full Case Text
Judgment text and source record
15 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT AT KENYA
AT NAIROBI
CIVIL APPEAL NO. 496 OF 2019
PACIS INSURANCE LIMITED .....APPELLANT/APPLICANT
VERSUS
KENYA INTERNATIONAL CO. LTD................RESPONDENT
RULING
This is an application by way of Notice of Motion seeking orders that there be a stay of execution of the judgment of the lower court, pending the hearing and determination of the appeal lodged by the appellant. Reasons for seeking the said order are set out on the face of the application, in addition to the averments made in the affidavit sworn by the Senior Legal Officer of the appellant.
The respondent opposes the application and there is a replying affidavit sworn by the Chief Executive Officer of the respondent. It would appear from the material presented that the appellant is ready to deposit half of the decretal sum as security while the respondent submits that the entire sum should be deposited.
The posting of security is one of the requirements for granting the orders sought by the appellant. I have considered the interests of both parties and in the end am persuaded that there should be a stay of execution, provided that the appellant shall deposit a sum of Kshs. 4 million in an interest earning account in the joint names of the advocates for the parties herein. The balance of the decretal sum shall be secured by a bank guarantee.
The above conditions shall be complied with within 30 days from the date of this ruling. In default execution shall proceed. The costs shall abide by the decision of the appeal.
Dated, signed and delivered at Nairobi this 19th Day of December, 2019.
A. MBOGHOLI MSAGHA
JUDGE