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Court of AppealPartially AllowedCivil Application No. 153 of 2020

Agricultural Development Corporation v Richard Kipkoech Aiyabei [2020] KECA 129 (KLR)

Court of Appeal
4 December 2020
2,888 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 order reinstating a state corporation's former director, ruling that challenges to a late appeal notice must be filed formally, not argued orally.

What this practically means

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Executive summary

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This is the Court of Appeal's reserved reasons for its ruling of 22nd July 2020 in an application by the Agricultural Development Corporation under sections 3A and 3B of the Appellate Jurisdiction Act and Rules 5(2)(b) and 42 of the Court of Appeal Rules, seeking stay of execution of, and stay of proceedings pursuant to, ex parte orders of Wasilwa, J. of the Employment and Labour Relations Court dated 1st April 2020 and extended on 4th June 2020 in Nairobi ELRC Petition No. 46 of 2020. The orders had reinstated the respondent to his former office after his one-year contract expired by effluxion of time, and the trial judge had declined to hear the applicant's application to set them aside until it purged alleged contempt. The respondent objected that the notice of appeal was filed out of time under Rule 75. The Court held that under Rules 83 and 84 such an objection must be brought by formal application, not written submissions, and since no cross-application was filed it found the application competent. On the merits, applying the well-trodden Rule 5(2)(b) parameters, the Court found the nine grounds of appeal arguable - including that the orders illegally extended an expired contract contrary to section 5(2) of the ADC Act - and found the appeal would be rendered nugatory because the threatened break-in and six-month committal for contempt would be irreversible. It affirmed the interim orders granting prayers 3 and 4, directed the registry to process the appeal expeditiously, and ordered costs of the application to abide the outcome of the intended 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 application before the Court was competent notwithstanding the alleged failure to lodge the notice of appeal within fourteen days under Rules 75(1) and (2) of the Court of Appeal Rules
  2. 2.Whether the intended appeal is arguable under the first limb of Rule 5(2)(b)
  3. 3.Whether the intended appeal would be rendered nugatory if stay is not granted under the second limb of Rule 5(2)(b)

Key legal issues

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01

Whether the notice of appeal on which the application was anchored was competent

Holding

The application was properly before the Court because the respondent raised the objection to the notice of appeal only through written submissions without filing a cross-application under Rules 83 or 84.

Reasoning

Rules 83 and 84 provide the procedure for faulting an incompetent notice of appeal: rule 83 allows the Court to treat an unprosecuted notice as withdrawn, and rule 84 allows an affected person to apply to strike out. The Court held that neither rule permits an objection to be taken orally or through written submissions. Since no cross-application was filed, the Court declined to strike out the notice and found the application properly laid before it.

p. 3
02

Whether the intended appeal is arguable

Holding

All nine grounds of appeal in the memorandum of appeal were found arguable, notwithstanding that they may not ultimately succeed.

Reasoning

The applicant intended to argue that the respondent's fixed-term contract had expired by effluxion of time on 31st March 2020; that the orders of 1st April 2020 were final in nature; that sections 49(4) and 50 of the Employment Act and rule 17(10) of the ELRC (Procedure) Rules 2016 were ignored; and that the orders of 4th June 2020 usurped the Board's powers in installing the respondent as Managing Director contrary to section 5(2) of the ADC Act. These grounds satisfied the arguability threshold.

p. 3
03

Whether the intended appeal would be rendered nugatory if stay is withheld

Holding

The nugatory prong was satisfied because a break-in order to reinstall the respondent into an occupied office and a committal to civil jail for contempt, if executed, would be irreversible.

Reasoning

The Court weighed the threatened execution of a break-in order to place the respondent back in his former offices, notwithstanding the applicant's uncontroverted allegation that another person had been procedurally installed in that office, and the threat of six months' civil jail for contempt. Both consequences, if executed before the appeal was heard, could not be undone, satisfying the second prerequisite under Rule 5(2)(b).

p. 4

Legal principles established

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  • An objection to the competence of a notice of appeal under Rules 83 and 84 of the Court of Appeal Rules must be raised by formal application, not by oral submissions or submissions in writing.
  • A notice of appeal must be lodged within fourteen days of the decision impugned and served on the opposite party within seven days of such lodging.
  • The overriding objective principle under sections 3A and 3B of the Appellate Jurisdiction Act requires the Court to achieve fair, just, speedy, proportional and cost-saving disposal of cases, guided by a broad sense of justice and freed from past technicalities.

Court orders

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  1. 1.Affirmation of the interim orders issued on 22nd July 2020 granting Prayers 3 and 4 of the application dated 16th June 2020
  2. 2.Stay of execution of the ruling and orders of the ELRC dated 1st April 2020 and extended on 4th June 2020 pending the hearing and determination of the intended appeal
  3. 3.Stay of further proceedings in the ELRC pending the hearing and determination of the intended appeal
  4. 4.Direction to the registry to liaise with the parties with a view of processing the appeal for speedy hearing and disposal
  5. 5.Costs of the application to abide the outcome of the intended appeal

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
Martha Karambu Koome
M. K. KoomeJA
Currently serving
majority
majority
On appeal from
Employment and Labour Relations Court at Nairobi
Nairobi ELRC Petition No. 46 of 2020
Jurisdiction invoked
Sections 3A and 3B of the Appellate Jurisdiction Act, Cap 9 and Rules 5(2)(b) and 42 of the Court of Appeal Rules, 2010

Relief refused

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Respondent's request to strike out the notice of appeal as incompetent for non-compliance with Rule 75(1) and (2)

No cross-application was filed under Rules 83 or 84; the objection was raised only through written submissions, which the rules do not sanction

p. 3

Costs

Costs of the application to abide the outcome of the intended 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.

We affirm the interim orders we issued on 22nd July 2020, granting Prayers 3 and 4 as prayed for in the application of 16th June 2020 and directing the registry to liaise with the parties with a view of processing the appeal for speedy hearing and disposal.
p. 4Final orders affirming stay of execution and stay of proceedings
The principles that guide the Court on the parameters for exercise of the Court's discretionary mandate under the said provision now form a well-trodden path, as crystallized in the case of Stanley Kangethe Kinyanjui vs. Tony Ketter & 5 others [2013] eKLR and which we fully adopt.
p. 3Rule 5(2)(b) principles adopted
there is no provision in the said rules for an oral application made either orally in Court or through submissions, whether oral or written.
p. 3Procedure for striking out a defective notice of appeal
We find all the above grounds of appeal arguable notwithstanding that they may not ultimately succeed.
p. 3Arguability threshold under Rule 5(2)(b)
Costs of the application to abide the outcome of the intended appeal.
p. 4Costs

Issues in the judgment

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minor

The judgment states the respondent's written submissions are dated 16th June 2020, the same date as the applicant's Notice of Motion, which may be a clerical inconsistency.

minor

The judgment refers inconsistently to the date of filing of the notice of appeal: the narrative says a Notice of Appeal dated 9th June 2020 was filed, while the respondent's submission is recorded as referring to a notice filed on 12th June 2020.

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Agricultural Development Corporation v Richard Kipkoech Aiyabei [2020] KECA 129 (KLR)", Case Analysis (2020). Civil Application No. 153 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/129/eng@2020-12-04

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