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Court of AppealDismissedMisc. Civil Application No. 121 of 2014 (UR.99/2014)· [2014] KECA 363 (KLR)

Rift Valley Water Services Board & 3 others v Geoffrey Asanyo & 2 others [2014] KECA 363 (KLR)

Court of Appeal
3 October 2014
2,951 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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The Court of Appeal refused to freeze a ruling that let directors take office, because a stay cannot be used to undo what has already happened.

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 (Nambuye, Musinga and J. Mohammed, 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, 2010, seeking a stay of execution of the judgment of Byram Ongaya, J of the Industrial Court at Nakuru in Petition No. 4 of 2014 delivered on 30 May 2014, pending an intended appeal. The underlying petition challenged the advertising and intended filling of six director positions of the Rift Valley Water Services Board as unconstitutional under Articles 41 and 47 of the Constitution. Applying the settled twin-principle test for rule 5(2)(b) relief, the court found the intended appeal arguable on grounds including the Industrial Court's jurisdiction over a company law dispute and the trial judge's alleged functus officio orders. However, the second ingredient failed: the first respondent and co-directors had occupied office under a High Court interlocutory injunction since confirmed after the merit hearing, and reversing that status quo would amount to a mandatory injunction unavailable under rule 5(2)(b) and would pre-empt the appeal. The court also rejected the balance of convenience doctrine as alien to rule 5(2)(b) procedure. The application was dismissed, with costs of the application abiding the outcome of the appeal.

Key legal issues

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01

Arguability of the intended appeal

Holding

The applicants raised more than one arguable point, including lack of jurisdiction of the Industrial Court over a company law matter and the trial Judge making orders while functus officio; a single bona fide arguable ground suffices

Reasoning

The court applied the crystallised rule 5(2)(b) principles, noting that it is sufficient if a single bona fide arguable ground is raised and that an arguable appeal is one which ought to be argued fully, not one that must succeed. The draft memorandum raised jurisdictional and functus officio grounds worth of interrogation, satisfying the first ingredient irrespective of the appeal's ultimate outcome.

p. 5
02

Whether the appeal would be rendered nugatory absent a stay

Holding

The second ingredient failed: the respondents had been in office under a High Court injunctive reprieve confirmed after the merit hearing, so unwinding that status quo would be a mandatory injunction outside rule 5(2)(b) and would pre-empt the appeal

Reasoning

The court observed that the exparte interlocutory injunctive reprieve had been confirmed after the merit hearing and was undisputed. Reversing that status quo at the interlocutory stage would amount to granting a mandatory injunction, not available under rule 5(2)(b), and would pre-empt the outcome of the intended appeal. The balance of convenience doctrine was rejected as foreign to rule 5(2)(b) procedure.

p. 5

Legal principles established

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  • An applicant under rule 5(2)(b) must satisfy both twin principles - arguability and nugatory-ness - and failure of either is fatal to the application
  • Where the events sought to be stayed have already taken effect and a stay would require reversing an existing status quo, such relief amounts to a mandatory injunction which is not grantable under rule 5(2)(b)
  • The balance of convenience is not a principle applicable to rule 5(2)(b) applications

Court orders

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  1. 1.The application for stay of execution of the judgment of the Nakuru Industrial Court pending appeal is dismissed
  2. 2.The costs of the application shall abide the outcome of the appeal

Authorities

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Legislation

  • Appellate Jurisdiction ActSections 3A & 3B
  • Court of Appeal Rules, 2010Rule 5(2)(b)
  • Court of Appeal Rules, 2010Rule 75
  • Constitution of Kenya, 2010Articles 10, 10(2), 41, 43(1), 47, 73, 162
  • Public Officers Act
  • Industrial Court ActSection 12
  • Companies ActSection 2 (Cap 486)

Cases cited (9)

  • Multi Media University & another versus Gitule N. Naitui
    [2014] eKLR
  • Board of Governors, Moi High School, Kabarak & Another versus Malcolm Bell
    Supreme Court Petition No. 6 & 7 of 2013
  • Gatirau Peter Munya versus Dickson Mwenda Kithinji and 2 others
    Supreme Court Petition Number 2 of 2014
  • Harveer Investments Company Limited versus Equatorial Commercial Limited & 3 others
    [2009] eKLR
  • David Randu versus Malindi Water & Sewerage Company Limited
    [2013] eKLR
  • Joshua Nyamache T. Omasire versus Charles Kinganga Maena
    [2014] eKLR
  • Kenya Revenue Authority and 2 others versus King-Bird (Kenya) Limited
    Civil Application No. Nai 322 of 2013 (UR 236 of 2013) (UR)
  • Unga Group Limited versus Francis Wanganjau
    Civil Application No. Nai 228 of 2000 (104/2000 (UR)
  • Stanley Kangethe Kinyanjui versus Tony Ketter & 2 others
    [2013] eKLR
On appeal from
Industrial Court of Kenya at Nakuru
Petition No. 4 of 2014
Jurisdiction invoked
Section 3A & 3B of the Appellate Jurisdiction Act Cap 9 and rule 5(2)(b) of the Court of Appeal Rules, 2010

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Rift Valley Water Services Board & 3 others v Geoffrey Asanyo & 2 others [2014] KECA 363 (KLR)", Case Analysis (2014). Misc. Civil Application No. 121 of 2014 (UR.99/2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2014/363/eng@2014-10-03

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