[2021] KECA 1014 (KLR)
The Court of Appeal found that the applicant had demonstrated an arguable appeal, as the grounds raised—including the issue of constructive trust and the application of section 3(3) of the Law of Contract Act—were not frivolous and deserved full argument. The Court further held that the applicant, having been in...
Source-derived case information.
- Citation
- [2021] KECA 1014 (KLR)
- Parties
- Applicant: Shiron Anastacia Nyakieka; Respondent: Sammy Nyarangi; Respondent: Beckie Boyani Nyarangi (sued in their capacity as the Administrators of the estate of James Onyiego Nyarangi (Deceased))
- Court
- Court of Appeal
- Court Station
- Court of Appeal at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Civil Application E001 of 2016
- Procedural Posture
- Stay Application / Application for Stay of Execution Pending Appeal
- Outcome
- Application for stay of execution allowed.
- Judges
- J Karanja, DK Musinga, AK Murgor
- Legal Topics
- Stay of Execution, Sale of Land, Oral Contracts, Constructive Trust, Specific Performance
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Shiron Anastacia Nyakieka
Applicant
Sammy Nyarangi
Respondent
Beckie Boyani Nyarangi (sued in their capacity as the Administrators of the estate of James Onyiego Nyarangi (Deceased))
Respondent
Procedural Posture
Stay Application / Application for Stay of Execution Pending Appeal
Legal Issues
- 1 Whether the applicant has demonstrated an arguable appeal warranting stay of execution.
- 2 Whether the appeal would be rendered nugatory if stay is not granted.
- 3 Whether an oral agreement for sale of land can be enforced under constructive trust despite section 3(3) of the Law of Contract Act.
Ratio Decidendi
The Court of Appeal found that the applicant had demonstrated an arguable appeal, as the grounds raised—including the issue of constructive trust and the application of section 3(3) of the Law of Contract Act—were not frivolous and deserved full argument. The Court further held that the applicant, having been in possession of the suit property since 2007 and having developed it, would suffer irreparable harm if evicted and her developments demolished before the appeal was heard. The risk that the respondents could dispose of the property before determination of the appeal would render the appeal nugatory. Accordingly, the Court exercised its discretion to grant a stay of execution pending...
Court Disposition
Application for stay of execution allowed.
Orders
- Stay of execution of the judgment of the Environment and Land Court in ELC Case No. 689 of 2016 granted pending hearing and determination of the intended appeal.
- The applicant shall not undertake any further developments on the suit property pending hearing and determination of the intended appeal.
Full Case Text
Judgment text and source record
41 paragraphs
IN THE COURT OF APPEAL
AT NAIROBI
(CORAM: KARANJA, MUSINGA & MURGOR, JJ. A.)
CIVIL APPLICATION NO. E001 OF 2020
BETWEEN
SHIRON ANASTACIA NYAKIEKA................................................................APPLICANT
AND
SAMMY NYARANGI AND
BECKIE BOYANI NYARANGI (sued in their capacity as the Administrators of the estate of
JAMES ONYIEGO NYARANGI (DECEASED)........................................RESPONDENTS
(Being an appeal from the Ruling of the Environment and Land Court at Nairobi (S. Okong’o, J.) delivered on 5th May 2020
in
E.L.C. Case No. 689 of 2016. )
**************************
RULING OF THE COURT
1. This ruling is in respect of the applicant’s application dated20th July 2020 of stay of execution of the judgment of the Environment and Land Court (ELC),Case No. 689 of 2016where the Court (Okong’o, J.) dismissing the applicant’s claim over a property known asL.R No.13874/9 I.R 16847(the suitproperty).
2. The applicant’s suit was founded on an alleged sale agreement dated 23rd September 2004 between her and the late Margaret Nyarangi. The learned judge held,inter alia, that the applicant failed to prove existence of a valid sale agreement as alleged and declined to order specific performance. The applicant had conceded that the alleged agreement was an oral one. The learned judge, in dismissing the claim, held that the alleged agreement was in violation ofsection 3(3)of theLaw ofContract Actwhich stipulates that:-
“No suit shall be brought upon a contract for the disposition of an interest in land unless the contract upon which the suit is founded-
(i) is in writing;
(ii) is signed by all the parties thereto.”
3. The applicant has now moved to this Court under rule 5(2)(b) of the Court of Appeal Rules, 2010, seeking stay of execution of the judgment.
4. The applicant contends, that the intended appeal is arguable and has annexed a draft memorandum of appeal listing nine(9) proposed grounds of appeal, among them being that the trial court erred in failing to find that upon payment of the purchase price, constructive trust arose as between the parties exempting the transaction from the provisions ofsection 3(3)of theLaw of Contract Act.
5. The applicant further stated that the appeal shall be rendered nugatory unless the orders sought are granted. The applicant is in occupation of the suit property since 2007 and hasdeveloped it. The learned judge, having dismissed the applicant’s claim, granted the respondent’s counter claim which,inter alia, granted them vacant possession of the suit property. Absent a stay order, the applicant shall be evicted from the suit property and the developments thereon demolished, the applicant stated.
6. The respondents opposed the application. They stated, inter alia, that the intended appeal is not arguable; that the applicant did not prove existence of a valid agreement; that the applicant did not seek to rely on constructive trust in her pleadings and only introduced that issue in her submissions.
7. We have considered the application, the replying affidavit, submissions and the cited case law. The principles that guide this Court in considering applications under rule 5(2) (b) are well settled. An applicant must demonstrate that he has an arguable appeal, and that unless the orders sought are granted, the appeal or intended appeal, if successful, shall be rendered nugatory. See Jaribu Holdings Ltd v Kenya Commercial Bank Ltd [2008] eKLR.
8. Having looked at the draft memorandum of appeal, we are satisfied that the intended appeal is arguable. An arguable appeal is not one that must necessarily succeed, but one which ought to be argued fully, even if it is only but a single ground that is arguable. See Stanley Kangethe Kinyanjui v Tony Ketter & 5 Others [2013] eKLR.
9. On the nugatory aspect, the applicant has been in possession of the suit property since 2007 and has partially developed it. Unless the orders sought are granted, the respondents will demolish the developments made on the suit property, thus rendering the appeal nugatory, partially so, if the respondents elect to dispose of the suit property before the appeal is heard and determined.
10. In the circumstances, we allow the application dated 20th July 2020. We further order that the applicant should not undertake any further developments on the suit property pending hearing and determination of the intended appeal. The costs of the application shall be in the appeal.
Dated and delivered at Nairobi this 29thday of January, 2021.
W. KARANJA
……………..………..
JUDGE OF APPEAL
D. K. MUSINGA
……………………..
JUDGE OF APPEAL
A. K. MURGOR
…………..……….....
JUDGE OF APPEAL
I certify that this is a true copy of the original.
Signed
DEPUTY REGISTRAR