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Court of AppealAllowedCivil Application (Rule 5(2)(b)) arising from Bungoma ELC Case 48 of 2013· [2021] KECA 334 (KLR)

Flavemart Enterprises Limited v Kenya Railways Corporation (Civil Application 50 of 2020) [2021] KECA 334 (KLR)

Court of Appeal of Kenya
17 December 2021
2,341 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 Flavemart's eviction pending its appeal, confirming a stay can be granted even when procedural defects are raised without a formal striking-out application.

What this practically means

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Executive summary

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Flavemart Enterprises Limited, the unsuccessful plaintiff before the Environment and Land Court, which had found Kenya Railways Corporation to be the rightful owner of Kisumu Municipality Block 11/7 and Flavemart's title a nullity, applied under Rule 5(2)(b) of the Court of Appeal Rules for a stay of execution of the judgment and decree delivered on 15th November 2019, pending an intended appeal. Kenya Railways opposed, arguing first that the application was incompetent because Flavemart had not filed its record of appeal within 60 days of its notice of appeal lodged on 18th November 2019, and second that neither the arguability nor the nugatory limb was satisfied, the applicant having also been bound by an earlier High Court ruling declining stay. The Court of Appeal (Okwengu, Warsame and Mohammed, JJA) held that a party cannot fault a notice of appeal through submissions alone; the procedure in Rules 83 and 84, including a striking-out application brought within 30 days of service, must be followed, and no such cross-application had been filed. On the merits, applying Trust Bank v Investech Bank and Stanley Kang'ethe Kinyanjui v Tony Ketter, the court found the intended appeal arguable because ownership of the suit property was genuinely contested, and found the nugatory limb satisfied because eviction was imminent, the applicant had developed the property with tenants, and the parties' conflicting claims over any sale to Dube Holdings Limited weighed in favour of preserving the position. The motion was allowed; stay of execution of the High Court judgment and decree of 15th November 2019 was granted pending hearing and determination of the intended appeal, with costs of the application to abide the appeal's outcome. The decision below was not disturbed; the substantive appeal remains pending.

Key legal issues

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01

Competence of the application where no record of appeal was filed within 60 days

Holding

The court declined to fault the notice of appeal because the respondent did not file a cross-application under Rules 83 or 84; the application was therefore properly before the court.

Reasoning

Rules 83 and 84 set out the procedure for deeming a notice of appeal withdrawn or striking it out where an essential step has not been taken within the prescribed time. Rule 84 imposes a 30-day limitation on such striking-out applications. Since the respondent made no such application and sought to raise the defect only through written submissions, the court declined the invitation and proceeded to determine the stay application on its merits.

p. 4
02

Arguability of the intended appeal

Holding

The intended appeal was arguable because there is a bona fide contestation over ownership of the suit property.

Reasoning

Applying the principles in Stanley Kang'ethe Kinyanjui v Tony Ketter, the court held that an arguable point need not succeed but must deserve consideration. The contest over ownership of the suit property - including the applicant's incorporation date relative to title issuance and the chain of transfers - raised at least one bona fide arguable ground, without making definitive findings that would embarrass the bench hearing the main appeal.

p. 4
03

Nugatory value if stay is refused

Holding

Stay was granted because eviction was imminent and the applicant faced hardship, with the conflicting claims of the parties weighing in favour of the applicant.

Reasoning

The court weighed the conflicting claims: the respondent claimed it had sold the property to Dube Holdings Limited, a claim the applicant disputed, while the applicant faced imminent eviction, potential demolition, and loss of rental income from developed premises. The court found the balance of the scales of justice tilted towards granting stay given the risk of eviction and hardship.

p. 5

Legal principles established

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  • An applicant under Rule 5(2)(b) must demonstrate both that the appeal is arguable and that it will be rendered nugatory absent stay; both limbs must be satisfied.
  • An arguable appeal is one that is not frivolous and ought to be argued fully; the court must not make definitive or final findings of fact or law at the interlocutory stage.
  • A party seeking to fault an allegedly incompetent notice of appeal must follow the procedure in Rules 83 and 84 of the Court of Appeal Rules, including the 30-day time limit for a striking-out application; the court will not fault a notice of appeal through submissions alone.

Court orders

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  1. 1.The Notice of Motion dated 6th May, 2020 is allowed
  2. 2.Stay of execution of the judgment and decree of the High Court delivered on 15th November, 2019, pending the hearing and determination of the intended appeal
  3. 3.Costs of the application to abide by the outcome of the intended appeal

Authorities

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Legislation

  • Court of Appeal RulesRule 5(2)(b)
  • Court of Appeal RulesRule 74
  • Court of Appeal RulesRule 81
  • Court of Appeal RulesRule 83
  • Court of Appeal RulesRule 84

Cases cited (2)

  • Trust Bank Limited and Another v. Investech Bank Limited and 3 Others
    [2000] eKLR
  • Stanley Kang’ethe Kinyanjui v Tony Ketter & 5 Others
    [2013] eKLR (Civil Application No. Nai. 31 of 2012)
On appeal from
Environment and Land Court (High Court), Bungoma/Kisumu
ELC Case 48 of 2013
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules (discretionary original jurisdiction 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, "Flavemart Enterprises Limited v Kenya Railways Corporation (Civil Application 50 of 2020) [2021] KECA 334 (KLR)", Case Analysis (2021). Civil Application (Rule 5(2)(b)) arising from Bungoma ELC Case 48 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/334/eng@2021-12-17

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