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Court of AppealDismissedCivil Application No. 36 of 2017· [2021] KECA 543 (KLR)

Kenya Revenue Authority v Evelyne Onyango Obondo

Court of Appeal
21 May 2021
1,977 words in judgment
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The bottom line

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Kenya's Court of Appeal refused to suspend an employee's reinstatement and back pay because KRA had already implemented the orders it wanted stopped.

What this practically means

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Executive summary

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The Kenya Revenue Authority applied to the Court of Appeal under sections 3A and 3B of the Appellate Jurisdiction Act and Rule 5(2)(b) of the Court's Rules for stay of execution of a ruling of the Employment and Labour Relations Court (Wasilwa, J.) delivered on 13th February 2017 in Nairobi ELRC Cause No. 2141 of 2016. The trial court had found that the respondent's rights under Articles 47 and 35 of the Constitution were infringed by an unfair and unexpeditious administrative (disciplinary) process, ordered her unconditional resumption of duty with payment of all withheld salaries and allowances, and barred reopening of the disciplinary process. The applicant filed a timely notice of appeal and proposed six grounds, including that final orders were issued at an interlocutory stage. The Court found a duly filed notice of appeal conferring jurisdiction, and held all six proposed grounds arguable. However, on the nugatory limb, the respondent's uncontroverted position was that she had already been reinstated, paid all arrears, redeployed and promoted, so the orders sought to be stayed had already been effected by the applicant itself. The application was therefore overtaken by events and there was nothing to be rendered nugatory. Emphasising that an applicant must demonstrate both the arguability and nugatory limbs to earn relief under Rule 5(2)(b), the Court dismissed the application with costs to the respondent. The decision does not disturb the ELRC ruling; it leaves the trial court's orders intact pending the intended appeal.

Key legal issues

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01

Whether the intended appeal is arguable

Holding

All six proposed grounds of appeal were found arguable, their ultimate outcome notwithstanding

Reasoning

The Court restated that an arguable appeal is one that is not frivolous or idle but raises a bona fide issue warranting the Court's interrogation and the opposite party's response; a single bona fide arguable ground suffices. Applying that threshold to the six proposed grounds, including that final orders were issued at an interlocutory stage, the Court was satisfied that all were arguable.

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02

Whether the appeal would be rendered nugatory absent stay

Holding

No, because the orders sought to be stayed had already been effected; the application was overtaken by events

Reasoning

The nugatory inquiry asks whether what is to be stayed is reversible, or if not, whether damages would compensate. The respondent's uncontroverted position was that she had already been reinstated, paid her withheld salaries and allowances, redeployed and promoted. Since the applicant itself had effected what it sought to stay, there was nothing left to be rendered nugatory.

p. 3
03

Scope of the statutory provisions invoked on the application

Holding

Section 27(1) and (2) of the Labour legislation did not fall for consideration; sections 3A and 3B of the Appellate Jurisdiction Act applied only peripherally, with Rule 5(2)(b) as the substantive provision

Reasoning

The Court identified Rule 5(2)(b) of the Court of Appeal Rules as the substantive provision governing the application. Sections 3A and 3B of the Appellate Jurisdiction Act enshrine the overriding objective and were considered only peripherally as donating latitude to the Court, while section 27 of the labour legislation was discounted as inapplicable to an application of this nature.

p. 2

Legal principles established

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  • An applicant under Rule 5(2)(b) must satisfy both the arguability and the nugatory limbs; failure on either limb is fatal to the application
  • An arguable appeal need not be one that will necessarily succeed; a single bona fide arguable ground suffices
  • An appeal is rendered nugatory if what is sought to be stayed is irreversible, or if it is irreversible and damages will not reasonably compensate the aggrieved party
  • Relief cannot issue where what is sought to be stayed has already been effected and the application is overtaken by events; there is then nothing to be rendered nugatory

Court orders

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  1. 1.The application dated 28th February 2017 fails and is dismissed with costs to the respondent
On appeal from
Employment and Labour Relations Court at Nairobi
Nairobi ELRC Cause No. 2141 of 2016
Jurisdiction invoked
Sections 3A and 3B of the Appellate Jurisdiction Act (Cap 9) and Rule 5(2)(b) of the Court of Appeal Rules, following a duly filed notice of 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, "Kenya Revenue Authority v Evelyne Onyango Obondo", Case Analysis (2021). Civil Application No. 36 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/543/eng@2021-05-21

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