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Court of AppealAllowedCivil Appeal No. 138 of 2007

TEA BOARD OF KENYA V GIDEON ASIRIGWA MBAGAYA [2009] KECA 304 (KLR)

Court of Appeal of Kenya
5 June 2009
923 words in judgment
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The bottom line

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Kenya's Court of Appeal blocked immediate payment of Kshs.941,708 against the Tea Board, confirming that a claimed 'admission' in an affidavit is arguable and granting a stay.

What this practically means

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Executive summary

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This is a single-judgment ruling of a three-judge bench of the Court of Appeal at Nairobi (Omolo, Githinji and Visram, JJA) on an application under Rule 5(2)(b) of the Court of Appeal Rules for stay of execution pending the hearing of Civil Appeal No. 138 of 2007. The appeal challenges a ruling of Nambuye, J dated 25th April/May 2007 in H.C.C. Suit No. 1292 of 2004, by which the High Court treated paragraphs 8 and 10 of an affidavit sworn by the Tea Board's finance director, Phrasia Wambui Mwangi, as an admission that the Board owed the respondent Kshs.941,708 in board and tender committee allowances, and ordered immediate payment, leaving the balance of the Kshs.1,684,400 claim for trial. The Court restated the two-limb Rule 5(2)(b) test: an arguable appeal, and nugatory value if stay is refused. It found the question whether the affidavit amounted to an admission to be arguable, without expressing a view on its ultimate merits. On nugatory value, the respondent's retirement from the civil service and the unparticularised nature of his claimed properties meant he might not refund the decretal sum if required; the applicant had already lodged a bank guarantee as security. Weighing these factors, the Court granted the stay, continued the bank guarantee in force until the appeal was determined, and ordered that the costs of the motion be in the appeal. The decision binds subordinate courts on the two-limb test for stay under Rule 5(2)(b). No authorities were cited.

Questions the Court framed

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

  1. 1.Whether the applicant had an arguable appeal that was not frivolous
  2. 2.Whether the appeal would be rendered nugatory if the stay of execution were not granted

Key legal issues

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01

Arguability of the appeal

Holding

The issue whether the finance director's affidavit constituted an admission of Kshs.941,708 was arguable, satisfying the first limb of Rule 5(2)(b).

Reasoning

The High Court had treated paragraphs 8 and 10 of the applicant's affidavit as an admission of Kshs.941,708 and ordered immediate payment. The applicant contended there was no such admission. The Court held the existence or absence of an admission was genuinely arguable, while stressing that arguability does not require the point to succeed.

p. 2
02

Nugatory value of the appeal

Holding

The appeal would be rendered nugatory if stay were refused because the respondent might be unable to refund Kshs.941,708 if required.

Reasoning

The respondent had retired from the civil service; his claim to own several properties in Vihiga District and Kakamega town was unsupported by any description or valuation. The applicant had already offered security (a bank guarantee) in the superior court. Weighing these factors, the Court was satisfied the second limb was met.

p. 2

Legal principles established

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  • An applicant under Rule 5(2)(b) must satisfy the court on two limbs: an arguable appeal and that the appeal would be rendered nugatory absent stay.
  • An arguable point need not be one that must succeed; it suffices that it is not frivolous.

Court orders

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  1. 1.Stay of execution of the order of Nambuye, J dated 25th April 2007 granted pending the hearing and determination of Civil Appeal No. 138 of 2007
  2. 2.The bank guarantee already offered in the superior court by the applicant shall continue in force until the appeal is heard and determined or until further order of the Court
  3. 3.Costs of the motion to be in the 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. Suit No. 1292 of 2004
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 applicant, on the other hand, has already offered security in the superior court and weighing one thing against the other we have come to the conclusion that we must grant to the applicant the order of stay as sought in paragraph 1 of the notice of motion.
p. 2disposition - stay granted
The bank guarantee already offered in the superior court by the applicant shall continue to be in force until the appeal is heard and determined or until further order of the Court.
p. 2final orders - security condition
it is to be remembered that an arguable point is not necessarily one that must succeed when the appeal is eventually heard and determined.
p. 2standard for arguability under Rule 5(2)(b)

Issues in the judgment

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minor

The heading states the ruling of Nambuye, J is dated 25th May 2007, but the body repeatedly refers to the order being made on 25th April 2007.

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, "TEA BOARD OF KENYA V GIDEON ASIRIGWA MBAGAYA [2009] KECA 304 (KLR)", Case Analysis (2009). Civil Appeal No. 138 of 2007. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2009/304/eng@2009-06-05

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