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Court of AppealAllowedCivil Appli No. 312 of 2007 (213/2007 UR)· [2008] KECA 310 (KLR)

Board of Trustees of the National Social Security Fund v Blantine Achitsa Induli & another (suing as the legal representative of the estate of the late Adrian Induli Shikali) [2008] KECA 310 (KLR)

Court of Appeal
29 February 2008
679 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal paused enforcement of a Shs.2.3 million judgment against NSSF because the appeal raised real questions worth hearing.

What this practically means

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Executive summary

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This is an interlocutory ruling of the Court of Appeal at Nairobi on an application under rule 5(2)(b) of the Court's rules by the Board of Trustees of the National Social Security Fund seeking stay of execution of a High Court judgment (Khamoni, J, dated 30th May 2007) awarding the respondents, as legal representatives of a deceased employee, Shs.2,326,000/= with costs and interest in respect of Group Insurance Benefits under a staff Retirement Benefit Scheme. The pension component of the claim had already been settled. A temporary stay on condition of a bank guarantee had earlier been ordered by Visram, J, and the applicant had filed Civil Appeal No. 131 of 2007 raising twenty-one grounds. Applying the settled rule 5(2)(b) twin tests, the Court held the grounds of appeal could not be described as frivolous, and, weighing the parties' respective positions - including the respondents' demonstrated substantial properties and the existing bank guarantee - granted a stay of execution conditional on the applicant providing a bank guarantee of Shs.3,000,000/= within fourteen days, to remain in force until the hearing and determination of the appeal or further orders. Costs of the motion were made costs in the appeal. The ruling is binding on the High Court and subordinate courts insofar as it articulates the rule 5(2)(b) requirements of an arguable appeal and nugatory impact. No decision below was disturbed; no authority was cited in the ruling.

Key legal issues

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01

Whether the intended appeal is arguable

Holding

The Court found the 21 grounds of appeal in the Memorandum of Appeal not frivolous, satisfying the arguability limb of the rule 5(2)(b) test.

Reasoning

Counsel for the applicant referred to the Memorandum of Appeal containing not less than twenty-one grounds. The Court considered the submissions and the grounds and concluded they could not be described as frivolous, expressly differing from the respondents' submission that the appeal was entirely without merit.

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02

Whether the appeal would be rendered nugatory without a stay

Holding

The Court granted a conditional stay, taking into account the parties' respective positions, the respondents' demonstrated substantial properties, and the existing bank guarantee securing the decretal sum.

Reasoning

The applicant argued it could not recover the decretal sum if paid to respondents of unknown means; the respondents demonstrated ownership of substantial properties in Nairobi and Kakamega and that the 1st respondent is the applicant's employee. Weighing these factors and the existing bank guarantee, the Court granted stay conditional on a fresh guarantee of Shs.3,000,000/=.

p. 2

Legal principles established

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  • An applicant for stay under rule 5(2)(b) must demonstrate that the appeal is arguable, that it is not frivolous, and that the appeal would be rendered nugatory if stay is not granted; existing security (such as a bank guarantee) is a relevant consideration in the nugatory assessment.

Court orders

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  1. 1.Stay of execution of the decree of the superior court dated 30th May 2007 granted to the applicant
  2. 2.Stay conditional on the applicant providing a Bank guarantee to an aggregate amount of Shs.3,000,000/= within fourteen days, such guarantee to remain in force until the hearing and determination of the appeal or until further orders
  3. 3.Costs of the motion to be in the appeal

Authorities

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Legislation

  • Court of Appeal Rulesrule 5(2)(b)
On appeal from
High Court of Kenya at Nairobi
H.C.C.C. No. 549 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, "Board of Trustees of the National Social Security Fund v Blantine Achitsa Induli & another (suing as the legal representative of the estate of the late Adrian Induli Shikali) [2008] KECA 310 (KLR)", Case Analysis (2008). Civil Appli No. 312 of 2007 (213/2007 UR). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2008/310/eng@2008-02-29

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