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Court of AppealAllowedCivil Application No. NAI 32 of 2014 (UR 25/2014)· [2014] KECA 239 (KLR)

Kayum Khan v International Commercial Company (K) Ltd [2014] KECA 239 (KLR)

Court of Appeal
21 November 2014
1,461 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 an employment case so a worker can appeal being barred from adding a KShs. 800,000+ pay claim.

What this practically means

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Executive summary

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This was a single-judge-joined (three-Judge coram) ruling of the Court of Appeal at Nairobi on a motion dated 24th February 2014 brought under Section 3A of the Appellate Jurisdiction Act and Rules 5(2)(b) and 42 of the Court of Appeal Rules by Kayum Khan, acting in person, seeking a stay of further proceedings in Industrial Court Case No. 66 of 2013 pending the hearing and determination of Civil Appeal No. 3 of 2014, which challenged a ruling of Hon. Lady Justice Monicah Mbaru delivered on 5th February 2014 disallowing his application to amend his Statement of Claim to include a remuneration claim of about KShs. 803,903. The court applied the notorious twin principles for stay pending appeal: the applicant must demonstrate an arguable appeal, not one that must necessarily succeed but one deserving of full argument, a single bona fide arguable ground sufficing; and the appeal must not be rendered nugatory if no stay is granted. The court found the appeal eminently arguable given authorities that amendments should be allowed at any stage to bring the totality of parties' claims before the court. On the nugatory limb, it held that if the claim proceeded without the amendment, the applicant would face fresh proceedings, delay, costs, and possible res judicata, and it gave 'nugatory' an extended meaning embracing 'trifling'. The application was allowed in terms of prayer 3 of the motion; costs were made costs in the appeal.

Key legal issues

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01

Arguability of the intended appeal

Holding

The appeal was eminently arguable; amendments to pleadings should be allowed at any stage to bring the totality of the parties' claims before the court, so the judge's refusal to allow amendment could not be dismissed as frivolous.

Reasoning

The court weighed the statutory and judicial authorities cited showing that amendments are meant to bring the totality of the parties' claims so that all issues in controversy are substantively determined. Given that the applicant sought to add a claim of KShs. 830,903 in remuneration for work done, the court found at least one bona fide arguable ground and rejected the respondent's contention that the appeal was frivolous.

p. 3
02

Whether the appeal would be rendered nugatory absent a stay

Holding

Yes. If the Industrial Court case proceeded without the amended claim being considered, the applicant would have to file fresh proceedings, with delay, costs, and the risk of being barred by res judicata; the appeal would be rendered nugatory.

Reasoning

The court held that to turn the applicant away with the platitude that he could file a fresh suit would not conduce to substantial justice or the overriding objective. It extended the meaning of 'nugatory' beyond 'worthless, futile or invalid' to include 'trifling', following Reliance Bank Ltd v Norlake Investments Ltd, and allowed the stay in terms of prayer 3.

p. 3

Legal principles established

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  • An applicant for stay pending appeal must first show an arguable appeal - one deserving of full argument, not necessarily one that must succeed; a single bona fide arguable ground suffices.
  • A single bona fide arguable ground is sufficient to satisfy the arguability limb.
  • The term 'nugatory' embraces not only what is worthless, futile or invalid, but also what is trifling.
  • The grant of stay pending appeal is discretionary but must be exercised judicially and judiciously.

Court orders

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  1. 1.Stay of further proceedings in Industrial Court Case Number 66 of 2013 pending the determination of Civil Appeal No. 3 of 2014, granted in terms of prayer 3 of the Motion
  2. 2.Costs shall be in the appeal

Authorities

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Legislation

  • Appellate Jurisdiction ActSection 3A
  • Court of Appeal RulesRules 5(2)(b) and 42
  • Civil Procedure Rules, 2010
  • Industrial Court Procedure Rules
  • Employment Act

Cases cited (8)

  • Kenya Pipeline Workers Union v Kenya Pipeline Co. Ltd
    [2014] eKLR
  • Erastus Chomba Wahome & 2 Others v David Kariuki Githiga & 4 Others
    [2006] eKLR
  • Elijah Kipngenom Arap Bii v Kenya Commercial Bank Ltd
    [2013] eKLR
  • Karuturi Networks Ltd & Anor v Daly & Figgis Advocates
    [2009] eKLR
  • Dream Camp Kenya Ltd v Mohammed Elfaff & 3 Others
    [2013] eKLR
  • Joseph Gitau Gachau & Another v Pioneer Holdings (A) Ltd & 2 Others
    Civil Application No. 124 of 2008
  • Damji Pragji Mandavia v Sara Lee Household & Body Care (K) Ltd
    Civil Application No. NAI 345 of 2004
  • Reliance Bank Ltd v Norlake Investments Ltd
    [2002] 1EA 27
On appeal from
Industrial Court
Civil Appeal No. 3 of 2014 (Ruling of 5th February 2014; stay sought in respect of Industrial Court Case No. 66 of 2013)
Jurisdiction invoked
Section 3A of the Appellate Jurisdiction Act and Rules 5(2)(b) and 42 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, "Kayum Khan v International Commercial Company (K) Ltd [2014] KECA 239 (KLR)", Case Analysis (2014). Civil Application No. NAI 32 of 2014 (UR 25/2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2014/239/eng@2014-11-26

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