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Court of AppealAllowedCivil Application No. Nai. 187 of 2000 (83/2000 IR)

BEARING HOUSE (1985) LIMITED & 4 OTHERS v RELIANCE BANK LIMITED [2000] KECA 183 (KLR)

Court of Appeal
20 July 2000
ALA.A. LakhaEOE. OwuorEOE. O'Kubasu
193 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~1 min to read original · ~4 min brief

The bottom line

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The Court of Appeal paused enforcement against Bearing House, but only on condition the company kept paying Kshs. 500,000 monthly.

What this practically means

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Executive summary

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This is a short interlocutory ruling of the Court of Appeal at Nairobi (Lakha, Owuor and O'Kubasu, JJ.A.) on an application by Bearing House (1985) Limited and four other applicants for a stay of execution pending appeal under rule 5(2)(b) of the Court of Appeal Rules, in proceedings against Reliance Bank Limited. The court recited that the principles governing such applications are well settled and, after hearing counsel, found both limbs of the established test satisfied: the intended appeal was arguable, and a refusal of the stay would render the appeal nugatory. The application accordingly succeeded. The stay was granted as prayed, but on conditions: the applicants were to pay Kshs.500,000/= per month with effect from 31 July 2000 and to deposit log books specified in paragraph (vii) of the motion within fourteen days. The ruling was dated and delivered at Nairobi on 20 July 2000 and bears the signatures of all three judges of appeal, indicating a single judgment of the whole court with no separate or dissenting opinions. No costs order is recorded. As an interlocutory ruling, it does not disturb any decision on the merits; its binding significance lies in its application of the twin rule 5(2)(b) test - arguability and nugatory effect - and in illustrating the court's power to grant a stay subject to protective conditions.

Questions the Court framed

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

  1. 1.Whether the intended appeal is arguable
  2. 2.Whether, if a stay is withheld, the appeal will be rendered nugatory

Key legal issues

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01

Stay pending appeal under rule 5(2)(b)

Holding

Stay granted because the appeal is arguable and withholding a stay would render it nugatory, subject to conditions of monthly payments and deposit of log books.

Reasoning

The court applied the settled rule 5(2)(b) principles: first, whether the intended appeal is arguable (not frivolous); second, whether the appeal would be rendered nugatory if the stay sought is not granted. Both limbs were satisfied on the material and submissions of counsel, so the discretionary relief issued on conditions protecting the respondent.

p. 1

Legal principles established

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  • The Court of Appeal grants a stay under rule 5(2)(b) where the appeal is arguable and a stay withheld would render the appeal nugatory.

Court orders

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  1. 1.Stay granted as prayed on condition that the applicants pay Kshs.500,000/= per month with effect from 31 July 2000
  2. 2.Applicants to deposit log books as specified in paragraph (vii) of the motion within 14 days

The bench

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

AL
majority
EO
majority
EO
majority
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

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 principles upon which this Court grants is now well settled.
p. 1Rule 5(2)(b) principles
we are satisfied that the applicants have an arguable appeal and that if a stay is withheld the appeal will be rendered nugatory
p. 1Twin test satisfied
the application succeeds and stay is granted as prayed on condition that the applicants do pay Kshs.500,000/= per month with effect from 31 July 2000 and deposit log books as specified in paragraph (vii) of the motion within 14 days hereof
Final orders and conditions

Issues in the judgment

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minor

The text is a certified copy with OCR corruption; party names are garbled (e.g. 'APRPEPMLCIHCAANND LAKMSHI SHAH') and the phrase 'reAncdeorreddi nngulgya, otrhye' appears corrupted, reconstructed as 'Accordingly, the'.

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (10)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "BEARING HOUSE (1985) LIMITED & 4 OTHERS v RELIANCE BANK LIMITED [2000] KECA 183 (KLR)", Case Analysis (2000). Civil Application No. Nai. 187 of 2000 (83/2000 IR). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2000/183/eng@2000-07-20

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