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Court of AppealAllowedCivil Appeal (Application) No. 118 of 2018· [2020] KECA 331 (KLR)

Sentrim Kenya Limited v Kenya Hotels and Allied Workers Union & another [2020] KECA 331 (KLR)

Court of Appeal of Kenya
2 October 2020
478 words in judgment
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The bottom line

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Kenya's Court of Appeal protected a hotel from having its equipment seized, pausing an employment judgment until its appeal is heard.

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 Sichale, JJ.A.) on a Notice of Motion dated 18th April 2019 by Sentrim Kenya Limited under rule 5(2)(b) of the Court of Appeal Rules. The applicant sought an injunction restraining the 1st respondent, Kenya Hotels and Allied Workers Union, from attaching, proclaiming, selling, leasing or otherwise disposing of its equipment and tools; a stay of execution of a proclamation dated 29th November 2019; and a stay of execution of the judgment and decree of the Employment and Labour Relations Court at Nairobi (Wasilwa, J.) dated 27th January 2016 in E.L.R.C Cause No. 2145 of 2014, all pending the hearing and determination of an intended appeal. The application was supported by an affidavit of Rajni Shah, the Managing Director, sworn on 18th April 2019; no replying affidavit was filed by the respondents. Applying the principles in Stanley Kangethe v Tony Ketter & Others [2013] eKLR, the Court found the intended appeal arguable and that it would be rendered nugatory absent the orders. It granted the injunction against the 1st respondent and a stay of execution of the decree, but directed the applicant to deposit Kshs.786,600 (the decretal amount) in Court within 14 days, since the 1st respondent's conduct had frustrated the earlier order of 14th February 2018 for deposit in a joint interest-earning account. Costs of the application were made to abide the outcome of the intended appeal. This is an interlocutory ruling, not a determination of the appeal itself.

Key legal issues

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Whether the applicant satisfied the twin principles for relief under rule 5(2)(b) of the Court of Appeal Rules

Holding

The applicant satisfied both the arguability and nugatory limbs, entitling it to an injunction against the 1st respondent and a stay of execution of the ELRC decree pending the intended appeal.

Reasoning

The Court applied the guiding principles summarised in Stanley Kangethe v Tony Ketter & Others, namely that the applicant must show an arguable appeal and that the appeal would be rendered nugatory if the orders are not granted. Finding both limbs demonstrated, and noting no replying affidavit was filed by the respondents, the Court granted an injunction restraining the attachment, proclamation or sale of the applicant's equipment and a stay of execution of the decree, conditional on the applicant depositing the decretal amount of Kshs.786,600 in Court within 14 days, since the 1st respondent's conduct had frustrated the operation of the joint interest-earning account earlier ordered.

p. 1

Legal principles established

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  • An applicant under rule 5(2)(b) must demonstrate both an arguable appeal and that the appeal will be rendered nugatory unless the orders sought are granted; where both limbs are satisfied, the Court will grant an injunction and stay of execution pending the intended appeal.

Court orders

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  1. 1.An order of injunction restraining the 1st respondent, its agents and/or servants from attaching, proclaiming, selling or in any other way interfering with the applicant's equipment, tools and property pending the hearing and determination of an intended appeal
  2. 2.Stay of execution of the judgment and/or decree in Nairobi ELRC No. 2145 of 2014 pending the hearing and determination of an intended appeal
  3. 3.The applicant to deposit in the Court, within 14 days, Kshs.786,600 being the decretal amount previously ordered to be deposited in a joint interest earning account on 14th February 2018, because the 1st respondent's conduct frustrated the opening of the joint bank account
  4. 4.The costs of the application to abide the outcome of the intended appeal

Authorities

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Legislation

  • Court of Appeal Rulesrule 5(2)(b)

Cases cited (1)

  • Stanley Kangethe v Tony Ketter & Others
    [2013] eKLR
On appeal from
Employment and Labour Relations Court at Nairobi
E.L.R.C Cause No. 2145 of 2014
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules (application for injunction and stay of execution pending the hearing and determination of an intended appeal)

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, "Sentrim Kenya Limited v Kenya Hotels and Allied Workers Union & another [2020] KECA 331 (KLR)", Case Analysis (2020). Civil Appeal (Application) No. 118 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/331/eng@2020-10-02

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