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Court of AppealDismissedCiv Appli 59 of 2006· [2007] KECA 433 (KLR)

Kabundu Holdings Limited v Ali K. Mohamed T/A Sky Club Restaurant

Court of Appeal of Kenya
9 February 2007
2,552 words in judgment
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The bottom line

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Kenya's Court of Appeal refused to pause a High Court ruling against Kabundu Holdings because winning the appeal later could still fix everything.

What this practically means

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Executive summary

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This was an application by way of notice of motion dated 27th February 2006 by Kabundu Holdings Limited under rule 5(2)(b) of the Court of Appeal Rules seeking a stay of execution of a ruling of the High Court of Kenya at Mombasa (Maraga, J) dated 6th September 2005 in H.C.C. Appeal No. 82 of 2004, pending an intended appeal. The superior court had held that Mr. Patrick Kabundu had no locus standi to act for the company, barred him from appearing for it, and struck out two of its applications, while holding that each party should bear its own costs. The applicant argued the intended appeal was arguable on the grounds that the Judge had no jurisdiction to revisit his own earlier ruling through a fresh, non-review application, and that the respondent had improperly delved into the company's internal affairs. The court, applying the settled twin principles for rule 5(2)(b) applications as restated in National Industrial Credit Bank Ltd v Aquinas Francis Wasike, found the intended appeal arguable. However, it held the nugatory limb failed: if the appeal succeeded, Mr. Kabundu could be reinstated, the company could appoint another advocate or regularise his position, the struck-out applications could be revived or refiled, and unpaid rent remained recoverable from the identifiable tenant. The court also declined to consider the respondent's replying affidavit, which was misheaded and apparently sworn before the application it replied to. The application was dismissed with each party bearing its own costs.

Key legal issues

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01

Whether the intended appeal is arguable

Holding

The intended appeal was arguable, particularly on whether the Judge could revisit his own earlier ruling through a fresh application that was not an application for review.

Reasoning

The applicant argued the superior court erred in revisiting the locus standi question already decided on a preliminary objection, and in entertaining an application delving into the company's internal affairs. The court found the question whether the Judge had jurisdiction to overturn his own ruling through a fresh, non-review application was clearly arguable, without expressing a view on its ultimate success.

p. 4
02

Whether the intended appeal's success would be rendered nugatory if stay were refused

Holding

The nugatory test failed; refusal of the stay would not render success in the intended appeal illusory.

Reasoning

The orders sought to be stayed were an order barring Patrick Kabundu from representing the company and an order striking out two applications. If the appeal succeeded, Kabundu could be reinstated, and the company could hire another advocate, pass a valid resolution, or have Kabundu regularised, then seek reinstatement of the struck-out applications or file fresh ones. Unpaid rent remained recoverable from the tenant, who was identifiable and located at the subject premises, so no loss would be irrecoverable.

p. 4
03

Whether the court should consider the respondent's defective replying affidavit

Holding

The court declined to consider the replying affidavit because it was directed to a non-existent application and was apparently sworn a month before the application it purported to reply to.

Reasoning

The affidavit was headed as replying to a notice of motion dated 3rd March 2006, an application that did not exist in the record, the motion under consideration being dated 27th February 2006. It was also sworn on 17th January 2006, before the application was filed. The court rejected counsel's explanation that the errors were typographical and disregarded the affidavit entirely.

p. 3

Legal principles established

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  • An applicant under rule 5(2)(b) must satisfy the twin tests of an arguable appeal and nugatory result; the court does not determine the validity of a notice of appeal at that stage.
  • In a rule 5(2)(b) application, arguability of the appeal does not mean the appeal will succeed; the points need only be capable of being decided either way at full argument.

Court orders

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  1. 1.The application for stay of execution under rule 5(2)(b) is dismissed
  2. 2.Each party to bear its own costs of the application
On appeal from
High Court of Kenya at Mombasa
H.C.C. Appeal No. 82 of 2004
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, "Kabundu Holdings Limited v Ali K. Mohamed T/A Sky Club Restaurant", Case Analysis (2007). Civ Appli 59 of 2006. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2007/433/eng@2007-02-09

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