[2023] KEHC 1510 (KLR)

[2023] KEHC 1510 (KLR)

The court found that the respondents failed to file an appeal within the statutory period prescribed by section 79G of the Civil Procedure Act, and did not seek leave to file out of time. The stay of execution granted by consent was expressly conditional upon the existence of a pending appeal. Since no appeal was...

Source-derived case information.

Citation
[2023] KEHC 1510 (KLR)
Parties
Applicant: Alice Wamaitha t/a Aliceshius Tours & Safaris; Respondent: Kenya Ports Authority; Respondent: Citi Bank NA
Court
High Court
Court Station
High Court at Mombasa
Jurisdiction
Kenya
Case Number
Miscellaneous Civil Application 143 of 2022
Procedural Posture
Miscellaneous Civil Application / Ruling on Application to Enforce Bank Guarantee Following Lapse of Stay of Execution
Outcome
application allowed
Judges
DKN Magare
Legal Topics
Stay of Execution, Bank Guarantee Enforcement, Appeals From Subordinate Courts, Consent Orders, Security for Due Performance
Source Language
en
Civil Procedure Banking and Finance Stay of Execution Bank Guarantee Enforcement Appeals From Subordinate Courts Consent Orders Security for Due Performance

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Parties

Alice Wamaitha t/a Aliceshius Tours & Safaris

Applicant

Kenya Ports Authority

Respondent

Citi Bank NA

Respondent

Procedural Posture

Miscellaneous Civil Application / Ruling on Application to Enforce Bank Guarantee Following Lapse of Stay of Execution

  1. 1 Whether the stay of execution granted by consent lapsed due to failure to file an appeal within the statutory period.
  2. 2 Whether the bank guarantee provided as security for stay of execution is now payable to the applicant.
  3. 3 Whether the applicant is entitled to enforce the decree and recover the guaranteed sum from the 2nd respondent.

Ratio Decidendi

The court found that the respondents failed to file an appeal within the statutory period prescribed by section 79G of the Civil Procedure Act, and did not seek leave to file out of time. The stay of execution granted by consent was expressly conditional upon the existence of a pending appeal. Since no appeal was filed, the stay lapsed automatically. The bank guarantee provided as security for the stay was therefore due and enforceable. The applicant, as decree holder, was entitled to immediate payment of the guaranteed sum from the 2nd respondent (Citi Bank NA) to satisfy the decree in Mombasa CMCC 2598 of 2018. The court ordered unconditional release of the guaranteed amount, awarded...

Court Disposition

application allowed

Orders

  • The guarantee is now payable under the decree in Mombasa CMCC 2598 of 2018 – Alice Wamaitha Mwangi t/a Aliceshius Tours and Safaris v Kenya Ports Authority.
  • The 2nd respondent, Citi Bank NA, to unconditionally release to the applicant’s advocates M/s Mogaka Omwenga the sum of Ksh 5,000,000 within 14 days; in default, execution to issue against the 2nd respondent.