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Court of AppealDismissedCivil Application (NAI) No. 70 of 2020· [2021] KECA 427 (KLR)

Reuben Kioko Mutyaene v Endermann Property Limited &another; [2021] KECA 427 (KLR)

Court of Appeal
9 July 2021
1,320 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 refused to halt a property sale dispute ruling, confirming that dismissed cases producing refund orders cannot be stayed.

What this practically means

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Executive summary

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This is a ruling of a three-judge bench of the Court of Appeal at Nairobi (Karanja, Okwengu and Warsame, JJ.A) on the applicant's application dated 6th March 2020 seeking stay of execution, stay of further proceedings and injunction pending appeal against the judgment of the Environment and Land Court at Machakos (Angote, J.) delivered on 21st February 2020. The trial court had dismissed the applicant's petition for wrongful revocation of a contract for the purchase of House No. 2103 on L.R. Mavoko/27317/2, ordering only that the 1st respondent refund the deposit paid less 10%. The applicant argued that the intended appeal was arguable because his right to property was infringed and the trial court relied on undisclosed pleadings, and that the appeal would be rendered nugatory because the suit property would be sold to a third party and the funds approved by KCB Bank would become obsolete. Applying the settled twin test under Rule 5(2)(b) of the Court of Appeal Rules, the court found the applicant had crossed the arguability threshold, since a single bona fide ground suffices. However, on the nugatory limb, the court held that the judgment below was in substance a negative order incapable of execution save perhaps for costs, and the applicant failed to demonstrate any risk of substantial loss. The application was therefore dismissed with costs. The decision binds subordinate courts and tribunals on the principles for stay and injunctive relief pending appeal, particularly the treatment of negative orders as incapable of stay.

Key legal issues

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01

Whether the intended appeal is arguable

Holding

The applicant surmounted the first hurdle, as arguability requires only one bona fide ground and does not require the appeal to be shown likely to succeed.

Reasoning

The court restated that an arguable appeal is not one which must necessarily succeed but one which ought to be argued, and that a single bona fide ground suffices. The applicant's claims that his right to property was infringed, that the suit property was likely to be sold to a third party, and that the termination of the sale agreement was illegal were held sufficient to cross the arguability threshold.

p. 2
02

Whether the intended appeal would be rendered nugatory absent the orders sought

Holding

No. The judgment below merely dismissed the applicant's petition and ordered refund of the deposit less 10%; the applicant showed no risk of substantial loss, so the application failed the second limb.

Reasoning

Relying on Catherine Njeri Maranga v Serah Chege, the court held that an order dismissing an application is a negative order incapable of execution save perhaps for costs. The applicant remained in the position he occupied before coming to court, so no substantial loss was demonstrated and the nugatory-ness inquiry did not arise. The twin requirements were therefore not satisfied.

p. 2

Legal principles established

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  • An applicant under Rule 5(2)(b) must satisfy the twin tests that the intended appeal is arguable and that, unless the orders sought are granted, the appeal will be rendered nugatory.
  • A single bona fide ground of appeal suffices to establish that an appeal is arguable.
  • A negative order, such as dismissal of a suit, is incapable of execution and therefore incapable of stay; the nugatory-ness test does not arise because the applicant loses nothing.
  • The same principles apply to an application for stay of execution, stay of further proceedings, or an injunction pending appeal.

Court orders

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  1. 1.The application dated 6th March 2020 for stay of execution, stay of further proceedings and injunction is dismissed
  2. 2.The applicant to pay costs of the application

Authorities

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Legislation

  • Court of Appeal RulesRule 5(2)(b)

Cases cited (4)

  • Ishmael Kagunyi Thande vs. Housing Finance Company Limited
    Civil Application No. 156 of 2006 (UR)
  • Stanley Kang’ethe vs. Tony Keter & 5 Others
    (2013) eKLR
  • Catherine Njeri Maranga vs. Serah Chege & Another
    [2017] eKLR
  • Oliver Collins Wanyama v Engineers Board of Kenya
    [2019] eKLR
On appeal from
Environment and Land Court at Machakos
ELC Petition No. 19 of 2018
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

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, "Reuben Kioko Mutyaene v Endermann Property Limited &another; [2021] KECA 427 (KLR)", Case Analysis (2021). Civil Application (NAI) No. 70 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/427/eng@2021-07-09

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