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Court of AppealPartially AllowedCivil Application No. NAI. 202 of 1998 (90/98 UR)

MALINDI AIR SERVICES & ANOTHER vs HALIMA ABDINOOR HASSAN [1998] KECA 111 (KLR)

Court of Appeal
1 September 1998
2,703 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal halted a High Court order over a leased aircraft, ruling a party who breached the contract and misled the court on oath shouldn't get sweeping interim relief.

What this practically means

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Executive summary

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The applicants, Malindi Air Services and John M. Cleave (original defendants), moved the Court of Appeal under rules 5(2)(b), 41 and 42 of the Court of Appeal Rules for a stay of execution of an order of the High Court at Nairobi (Mbogholi Msagha J.) dated 6 August 1998 in H.C.C.C. No. 1509 of 1998, or alternatively an order compelling the respondent (original plaintiff) to redeliver a Cessna 404 aircraft. The High Court had granted the plaintiff's chamber summons in full, including what the Court of Appeal observed were effectively final orders commanding redelivery of the aircraft, despite the plaintiff's evident defaults under the lease purchase agreement. The plaintiff alleged she had paid the deposit and all instalments; the defendants' evidence showed substantial arrears, dishonoured cheques, cancelled insurance and unpaid repair bills. Before the Court of Appeal, the plaintiff's counsel conceded breach of the agreement and that she had mis-stated matters on oath. Applying the settled twin test for rule 5(2)(b) applications, the court found the intended appeal arguable - it being arguable that a mandatory injunction should not have been granted to a defaulting party who had not come to court with clean hands - and that the appeal would be rendered nugatory without a stay, given the plaintiff's untrustworthy conduct and the risk the aircraft could not be recovered. The court granted a stay of execution until final determination of the intended appeal or further order, restrained the defendants from removing, selling or parting with the aircraft, required its production to the court when required, declined to consider the alternative redelivery prayer as the aircraft remained with the 1st defendant, and ordered costs of the motion to abide the result of the intended appeal.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the defendants had an arguable intended appeal against the ruling of the superior court
  2. 2.Whether the intended appeal would become nugatory unless stay of execution of the superior court's order was granted

Key legal issues

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01

Whether the intended appeal was arguable

Holding

The appeal was arguable because the plaintiff conceded breach of the agreement and untruthful affidavit evidence, making it arguable that the superior court should not have granted a mandatory injunction to a party in default and without clean hands.

Reasoning

Counsel for the plaintiff conceded she was in breach, owing roughly US$70,000, and that she had mis-stated on oath that she had paid all instalments diligently. The court held it arguable that a court should not grant a mandatory injunction to a defaulting party who has made untrue statements on oath, and that her case was not clear and incontrovertible as required for such an injunction at the interlocutory stage.

p. 4
02

Whether the intended appeal would be rendered nugatory absent a stay

Holding

Yes. Given the plaintiff's defaults, dishonoured cheques, lapsed insurance and unpaid repair bills, and the risk that the aircraft could not be recovered, the appeal would be nugatory without a stay.

Reasoning

The plaintiff was in default of at least US$70,000, had issued dishonoured cheques, failed to insure the aircraft and left unpaid repair bills. The aircraft was charged to N.I.C. Bank which might seize and sell it. The plaintiff offered no security for future instalments, no undertaking to pay arrears or insurance, and her conduct showed she was not trustworthy, so the defendants might never recover the aircraft if she succeeded on appeal.

p. 4

Legal principles established

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  • An applicant for stay of execution pending appeal must satisfy the court both that the appeal is arguable and that it would become nugatory if stay is not granted.
  • A mandatory injunction at an interlocutory stage is rarely granted and only where the plaintiff's case is clear and incontrovertible; a party in default who comes to court with untruthful statements on oath will not obtain it.
  • An interlocutory injunction is granted only where there is complete and utmost good faith and no material untruthfulness by the party seeking the court's assistance.

Court orders

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  1. 1.Stay of execution of the order of the superior court made on 6th August 1998 until the final determination of the defendants' intended appeal or until further order of the court, whichever is earlier
  2. 2.The defendants restrained from removing the aircraft from the jurisdiction of the court
  3. 3.The defendants restrained from selling or otherwise parting with possession of the aircraft during the pendency of their intended appeal
  4. 4.The defendants to produce the aircraft and place it at the disposal of the court whenever required to do so
  5. 5.Costs of the notice of motion to abide the result of the intended appeal

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
majority
majority
On appeal from
High Court of Kenya at Nairobi
H.C.C.C. No. 1509 of 1998
Jurisdiction invoked
Rules 5(2)(b), 41 and 42 of the Court of Appeal Rules (application for stay of execution and injunction pending intended appeal)

Relief refused

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Alternative prayer compelling the plaintiff to redeliver the aircraft to the defendants

The aircraft was still in the possession of the 1st defendant, so the prayer did not need consideration

p. 4

Costs

Costs of the notice of motion shall abide by the result of the intended appeal.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

the defendants have to satisfy us that (a) they have an arguable appeal and (b) that in case the defendants succeed in their intended appeal, it would become nugatory unless we order stay of execution of the said ruling and order of the superior court.
p. 4Test for stay of execution pending appeal under rule 5(2)(b)
A mandatory injunction at an interlocutory stage is rarely granted; only when the plaintiff's case is clear and incontrovertible.
p. 4Threshold for interlocutory mandatory injunctions
We therefore grant the application and order stay of execution of the said order made on 6th August, 1998 until the final determination of the Defendant's intended appeal or until further order of the court, whichever may be earlier.
p. 4Final orders - stay granted
Costs of the notice of motion shall abide by the result of the intended appeal.
p. 5Costs order

Issues in the judgment

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minor

The judgment records the plaint as alleging repossession on 2nd July 1992, which the judgment itself notes is an evident typographical error for 1998.

minor

The judgment refers to the affidavit of the 2nd defendant but in one passage describes the same documents as annexed to the affidavit of the 1st Defendant.

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "MALINDI AIR SERVICES & ANOTHER vs HALIMA ABDINOOR HASSAN [1998] KECA 111 (KLR)", Case Analysis (1998). Civil Application No. NAI. 202 of 1998 (90/98 UR). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1998/111/eng@1998-09-01

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.