China Road & Bridge Corporation (K) Ltd v African Gas & Oil Co Ltd & 3 others [2016] KECA 76 (KLR)
The bottom line
#Kenya's Court of Appeal halted a Kshs 2 billion payment order, ruling that unproven contempt claims don't disqualify a party from staying execution pending appeal.
What this practically means
#Executive summary
#Key legal issues
#Whether the alleged violation of conservatory orders barred the applicants from obtaining stay of execution
The court made no finding of violation and held the point did not disentitle the applicants to the equitable and discretionary remedy of stay.
African Gas relied on photographs said to show continuing construction works. The court examined the six photographs: four showed only equipment with no persons, making it impossible to tell whether work was going on; the other two showed people standing by, but African Gas itself acknowledged the parties had been allowed access to secure equipment. No evidence of initiatives suggestive of contempt was before the court, so no finding of violation could be made.
Whether the intended appeals were arguable
The intended appeals were found not to be frivolous, raising several legitimate and arguable points.
The court reviewed the ruling and draft grounds of appeal and identified multiple bona fide issues: whether title to compulsorily acquired properties had passed; whether the Land Act permitted possession before compensation in urgent necessity; whether injunctive conservatory orders were justified for liquidated-sum claims; whether African Gas' title was finally established; whether the deposit order was made without being sought or heard; and whether an undertaking on damages ought to have been made. It declined to elaborate further lest it prejudge the appeal.
Whether the intended appeals would be rendered nugatory without stay
The court was satisfied that the nugatory test was met, given the massive losses the conservatory orders were occasioning and the petitioners' failure to seriously dispute them.
The court noted that what renders an appeal nugatory depends on the circumstances of each case and that the court must weigh the respective hardship each party stands to suffer, not merely the ability to pay. The applicants averred massive daily losses from idle equipment and a mobilised workforce; the petitioners did not seriously dispute those averments, relying instead on the unproven contempt allegation. Both rule 5(2)(b) conditions were satisfied.
Legal principles established
#- To obtain stay of execution under rule 5(2)(b), an applicant must satisfy both the arguability and nugatory tests.
- An arguable appeal need not succeed; a single bona fide issue deserving of full consideration suffices.
- Where an applicant seeks an equitable discretionary remedy, unproven allegations of contempt will not disqualify them absent evidence of initiatives suggestive of contempt.
Court orders
#- 1.Stay of execution of the ruling and order of the ELC dated 21st July 2016 pending the filing, hearing and determination of the intended appeals
- 2.The intended appeal to be filed within 30 days from the date of the ruling
- 3.Costs of the application to abide the outcome of the intended appeal
- On appeal from
- High Court of Kenya at Mombasa (Environment and Land Court)
- ELC Const. Petitions Nos. 170 & 171 of 2016
- Jurisdiction invoked
- Rule 5(2)(b) of the Court of Appeal Rules
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (6)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Mbarak (In the matter of the Estate of Mbarak Awadh Salim (Deceased) v Freedom Limited (Civil Application E004 of 2023) [2023] KECA 350 (KLR)[2023] KECA 350 (KLR)31 Mar 2023applied
- Olalui Group Ranch v Gideon Konchella & 11 others [2020] KECA 28 (KLR)[2020] KECA 28 (KLR)18 Dec 2020applied
- Konene Narankaik v Rehema Ahmed (Administrator Estate of Ahmed Abdi Murasa & another [2020] KECA 58 (KLR)[2020] KECA 58 (KLR)18 Dec 2020applied
- Josephat Lisiolo Lishenga v Dariya Shinyanzwa & 4 others [2020] KECA 88 (KLR)[2020] KECA 88 (KLR)4 Dec 2020applied
- Nzoia Sugar Company Limited v Nobert Muhoro Ikundo Mwanyalo [2020] KECA 308 (KLR)[2020] KECA 308 (KLR)9 Oct 2020applied
- Unilever Tea Kenya Limited v National Land Commission & 2 others [2017] KEELC 76 (KLR)[2017] KEELC 76 (KLR)22 Nov 2017
Cite this brief
#Cite this brief
Caselaw, "China Road & Bridge Corporation (K) Ltd v African Gas & Oil Co Ltd & 3 others [2016] KECA 76 (KLR)", Case Analysis (2016). Civil Application No. 47 of 2016 (UR 40/16). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2016/76/eng@2016-11-25
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.