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Court of AppealDismissedCivil Application No. NAI. 190 of 2010 (UR 136/2010)

Kuwinda Rurinja Co. Ltd v Kuwinda Holdings Ltd. & 13 others [2010] KECA 13 (KLR)

Court of Appeal
10 December 2010
2,378 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~10 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal refused to stop land dealings pending appeal because the applicant waited over ten years, but preserved the status quo and fast-tracked the appeal.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (Tunoi, O'Kubasu and Githinji, JJ.A) on a notice of motion under sections 3A and 3B of the Appellate Jurisdiction Act and Rule 5(2)(b) of the Court of Appeal Rules, in which Kuwindu Rurinja Co. Ltd sought an injunction restraining Kuwindu Holdings Ltd and another from alienating, transferring, subdividing, developing or otherwise dealing with L.R No. 10262/2 and L.R No. 11694 pending the hearing of Civil Appeal No. 8 of 2003. The appeal challenges a High Court ruling of Ole Keiwua, J dated 5th December 1997, dismissing applications for review of consent orders, holding that an advocate's apparent authority could not be gone behind and that fraud allegations must be sued upon by fresh suit. The applicant argued the consent was entered without authority and that, unless restrained, the respondents would destroy the subject matter contrary to section 52 of the Indian Transfer of Property Act. The court applied the settled twin test under Rule 5(2)(b): arguability and nugatory effect. It found the 62-ground appeal arguable, holding that even one arguable point suffices. However, the nugatory limb failed: the respondents assured the court of no intention to sell, the applicant had been indolent for over ten years since the ruling, and the sub-division had been carried out pursuant to the superior court's order. Applying the overriding objective, the court refused the injunction, ordered that the status quo prevailing on 10th December 2010 be maintained until final determination of the appeal, and directed that the costs of the application abide the outcome of the appeal.

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 (Civil Appeal No. 8 of 2003) is arguable
  2. 2.Whether, unless the injunction sought is granted, the appeal, if successful, would be rendered nugatory

Key legal issues

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01

Whether the intended appeal was arguable

Holding

Yes - the 62-ground memorandum of appeal raised some arguable points; one arguable point suffices under Rule 5(2)(b)

Reasoning

The court considered the memorandum of appeal challenging the High Court ruling that the advocate had apparent authority to record the consent order and that fraud must be sued upon by fresh suit. It concluded the intended appeal was not frivolous, emphasising that arguability requires only a single arguable point, not certainty of success.

p. 4
02

Whether the appeal would be rendered nugatory absent an injunction

Holding

No - the respondents' assurance that they had no intention of selling, the applicant's over-ten-year delay, and the fact that sub-division was effected pursuant to a court order meant the nugatory limb failed

Reasoning

The court weighed the applicant's fear that the land would be disposed of or charged against the respondents' stated assurance of non-interference. It noted the applicant's indolence over more than ten years since the 1997 ruling and that the sub-division had been carried out in accordance with the superior court's order, so no nugatory prejudice was demonstrated.

p. 4
03

Effect of inordinate delay on a Rule 5(2)(b) application and the overriding objective

Holding

The delay of over ten years justified describing the applicant as indolent; in furtherance of the overriding objective, the main appeal should be expedited rather than the injunction granted

Reasoning

The court observed the ruling challenged dated from 5th December 1997 while the application was filed on 2nd August 2010. Guided by section 3A of the Appellate Jurisdiction Act, it preferred listing the main appeal for hearing and final determination to bring the long litigation to an end, refusing the injunction but preserving the status quo meanwhile.

p. 4

Legal principles established

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  • To succeed on a Rule 5(2)(b) application, an applicant must demonstrate both that the appeal or intended appeal is arguable and that, if successful, it will be rendered nugatory unless the order sought is granted
  • Even one arguable point suffices to satisfy the arguability limb of Rule 5(2)(b); a chain of arguable points is not required
  • An arguable appeal does not mean an appeal that will certainly succeed; it is enough that the appeal is not frivolous
  • The jurisdiction of the Court of Appeal under Rule 5(2)(b) is original and discretionary, and the court exercises its mind de novo without it being an appeal from the trial judge's discretion

Court orders

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  1. 1.Application for injunction refused
  2. 2.Status quo prevailing as at 10th December 2010 to be maintained until final determination of the appeal
  3. 3.Costs of the application to abide the outcome of 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.C. No. 5261 of 1988
Jurisdiction invoked
Sections 3A and 3B of the Appellate Jurisdiction Act (Cap. 9) and Rule 5(2)(b) of the Court of Appeal Rules

Relief refused

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Order of injunction restraining the 1st and 2nd respondents from alienating, transferring, sharing, sub-dividing or otherwise dealing with L.R No. 10262/2 and L.R No. 11694 pending hearing and determination of Civil Appeal No. 8 of 2003

The appeal is arguable but the nugatory limb failed: the respondents gave an assurance that there was no intention of selling the suit property, the applicant had been indolent for over ten years, and the sub-division was carried out in accordance with the order of the superior court

p. 4

Order of injunction restraining the 1st and 2nd respondents from further developing, putting up structures or otherwise dealing with the suit properties

Same failure of the nugatory limb; the court instead ordered maintenance of the status quo pending final determination of the appeal

p. 4

Costs

The costs of this application shall abide the outcome of the appeal

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.

As for this application the order that commends itself to us is that the application for injunction is refused but we order that the status quo prevailing today (10th December, 2010) be maintained until the final determination of the appeal. The costs of this application shall abide the outcome of the appeal.
p. 4Final orders - injunction refused, status quo maintained, costs to abide appeal
The Court will grant a stay or injunction, as the case may be if satisfied, firstly, that the applicant has demonstrated that his appeal or intended appeal is arguable; and secondly, that unless a stay or injunction is granted his appeal or intended appeal if successful, will be rendered nugatory.
p. 3Twin test under Rule 5(2)(b)
There may or may not be other arguable points but as we have said before even one arguable point is sufficient for the proposal of rule 5(2)(b); there need not be a chain of arguable points to sustain an application.
p. 4Single arguable point sufficient
We have carefully considered the filed Memorandum of Appeal together with the submission by Mr. Ng'ang'a and have come to the conclusion that the intended appeal raises some arguable points.
p. 4Arguability finding on the facts

Issues in the judgment

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minor

The cause number under which the appeal to the Court of Appeal is described is inconsistent with the record: the application is brought pending Civil Appeal No. 8 of 2003, but the memorandum of appeal is dated 27th January 2003 while the ruling appealed from was delivered on 5th December 1997, and the High Court case is styled both H.C.C.C. No. 5261 of 1998 in the header and HCCC No. 5261 of 1988 in the judge's extracted ruling

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, "Kuwinda Rurinja Co. Ltd v Kuwinda Holdings Ltd. & 13 others [2010] KECA 13 (KLR)", Case Analysis (2010). Civil Application No. NAI. 190 of 2010 (UR 136/2010). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2010/13/eng@2010-12-10

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