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Court of AppealPartially AllowedCivil Appeal E286 of 2021· [2021] KECA 229 (KLR)

Impression Advertising Limited v Mantrac Kenya Limited (Civil Appeal E286 of 2021) [2021] KECA 229 (KLR)

Court of Appeal
19 November 2021
WKW KaranjaAMA K MurgorAMA Mbogholi-Msagha
277 words in judgment
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The bottom line

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The Court of Appeal paused enforcement of the judgment against Impression Advertising, but only on condition that the company secures Kshs. 10 million by bank guarantee within 45 days.

What this practically means

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Executive summary

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This is a short interlocutory order of the Court of Appeal arising from an application by Impression Advertising Limited for stay of execution and further proceedings pending appeal against the ruling and order of the Employment and Labour Relations Court at Milimani. Counsel for both parties appeared before the Court (W. Karanja, A.K. Murgor and A. Mbogholi-Msagha, JJA) and, although amenable to negotiating the terms of a stay, were unable to agree on those terms. The Court therefore considered the parties' competing proposals itself and, taking account of the circumstances surrounding the matter, granted a conditional stay of execution and enforcement of the judgment and decree of Hon. Obaga, J. made on 26th September 2019, pending the hearing and determination of the appeal. The stay was conditioned on the applicant executing a bank guarantee for Kshs. 10,000,000 within 45 days of the order; failing that, the stay orders would stand vacated and the respondent would be at liberty to execute the decree. The order is procedural in nature and determines only the interim preservation of the appeal; it does not dispose of the appeal itself. The judgment contains no separately authored opinions, no citation of authorities or statutory provisions, and records no order as to costs. Notably, the case caption refers to a ruling by Hon. Hellen Wasilwa, J delivered on 27th February 2020, while the operative stay relates to a judgment of Hon. Obaga, J of 26th September 2019; the judgment does not explain this discrepancy.

Key legal issues

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01

Whether stay of execution pending appeal should be granted and on what conditions

Holding

The court granted a conditional stay, requiring security in the form of a bank guarantee for Kshs. 10,000,000 within 45 days, with the stay lapsing automatically if the condition was not met.

Reasoning

Counsel for both parties were amenable to negotiating terms of a stay but could not agree. The court therefore considered the parties' proposals itself and, bearing in mind the circumstances of the matter, fashioned a conditional stay balancing the applicant's right to pursue the appeal with the respondent's ability to execute if security was not furnished.

p. 1

Legal principles established

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  • The Court of Appeal may grant a stay of execution pending appeal on conditions, including security by way of a bank guarantee, failing which the stay lapses.

Court orders

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  1. 1.Conditional stay of execution and enforcement of the judgment and decree of Hon. Obaga, J. made on 26th September 2019, pending the hearing and determination of the appeal
  2. 2.The applicant to execute a Bank Guarantee for Kshs. 10,000,000 within 45 days from the date of the order, failing which the stay orders stand vacated and the respondent is at liberty to execute the decree
On appeal from
Employment and Labour Relations Court at Milimani
ELC Petition No. 114 of 2019
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules (application for stay of execution and further proceedings pending 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, "Impression Advertising Limited v Mantrac Kenya Limited (Civil Appeal E286 of 2021) [2021] KECA 229 (KLR)", Case Analysis (2021). Civil Appeal E286 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/229/eng@2021-11-19

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