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Court of AppealPartially AllowedCivil Appli 281 of 2005 (UR 174/2005)· [2006] KECA 50 (KLR)

Aloys Blaise Ayako v University of Nairobi [2006] KECA 50 (KLR)

Court of Appeal of Kenya
10 November 2006
483 words in judgment
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The bottom line

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Kenya's Court of Appeal stopped enforcement of a Shs.676,000 judgment against a tenant pending appeal, but only after he paid Shs.500,000 into court.

What this practically means

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Executive summary

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This is a unanimous ruling of a three-judge bench of the Court of Appeal at Nairobi (Tunoi, Githinji and Onyango Otieno, JJA) delivered on 10 November 2006 on an application under rule 5(2)(b) of the Court's Rules by Dr. Aloys Blaise Ayako seeking a stay of execution of High Court orders in H.C.C.C. No. 832 of 2002 (Mugo, J) pending an intended appeal. The underlying suit was brought by the University of Nairobi claiming Shs.676,000/= in rents from June 1999 to August 2001 at Shs.26,000/= per month. The applicant's defence was struck out on 24 June 2004 for failure to make discovery on oath, judgment was entered against him, and attempts to set aside that judgment failed. The court applied the two well-known rule 5(2)(b) tests: first, it found the intended appeal arguable and not frivolous; second, applying the principles in Oraro and Rachier v Co-operative Bank of Kenya Limited [1999] LLR 1118 (CAK), it held that requiring the applicant to deposit the entire decretal sum would be too onerous and well-nigh impossible. The court allowed the application but on terms: a stay of the decree was granted pending the filing and determination of the intended appeal, conditional on the applicant depositing Shs.500,000/= with the Court within 30 days, failing which the application would stand dismissed. No costs order was recorded.

Key legal issues

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01

Whether the intended appeal was arguable

Holding

The court was satisfied the intended appeal was arguable and not frivolous, satisfying the first limb of the rule 5(2)(b) test.

Reasoning

The court considered the rival submissions of the parties and perused the pleadings on record. It found the applicant's intended appeal arguable, expressly stating it did not regard the appeal as frivolous, thereby satisfying the first established principle for relief under rule 5(2)(b) of the Court's Rules.

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02

Whether the appeal would be rendered nugatory absent a stay, and on what terms stay should issue

Holding

Applying Oraro and Rachier v Co-operative Bank of Kenya Limited, requiring the applicant to deposit the entire decretal sum would be too onerous and well-nigh impossible; a conditional stay with a Shs.500,000/= deposit was granted.

Reasoning

The court applied its own precedents on the nugatory test. Noting the decretal claim of Shs.676,000/= in unpaid rents, it found requiring deposit of the entire decretal sum too onerous and well-nigh impossible on the circumstances shown. It balanced the applicant's position against the respondent's by granting a stay conditional on a lesser deposit within 30 days, with automatic dismissal in default.

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Legal principles established

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  • In a rule 5(2)(b) application, the applicant must demonstrate that the intended appeal is arguable and that its success would be rendered nugatory absent the orders sought
  • The nugatory-impact test in rule 5(2)(b) applications is assessed applying the principles in Oraro and Rachier v Co-operative Bank of Kenya Limited, and the burden of depositing the entire decretal sum may be too onerous where it would render the appeal nugatory

Court orders

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  1. 1.Stay of execution of the decree of the High Court in H.C.C.C. No. 832 of 2002 pending the filing and determination of the intended appeal
  2. 2.Applicant to deposit Shs.500,000/= with the Court within 30 days
  3. 3.In default of the deposit, the application to stand dismissed

Authorities

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Legislation

  • Court of Appeal Rulesrule 5(2)(b)

Cases cited (1)

  • Oraro and Rachier v Co-operative Bank of Kenya Limited
    [1999] LLR 1118 (CAK)
On appeal from
High Court of Kenya at Nairobi
H.C.C.C. No. 832 of 2002
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

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, "Aloys Blaise Ayako v University of Nairobi [2006] KECA 50 (KLR)", Case Analysis (2006). Civil Appli 281 of 2005 (UR 174/2005). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2006/50/eng@2006-11-10

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