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Court of AppealDismissedCivil Application No. 297 of 2019· [2021] KECA 597 (KLR)

Telesource Com Limited v Muchanga Investment Limited, Habenga Holdings Limited, Jina Enterprises Limited Director of Survey, Director Physical Planning Ministry of Lands & Housing, Registrar of Titles Ministry of Lands & Housing, Chief Land Registrar Ministry of Lands and Housing John Mugo Kamau Catherine Nga’ng’a, For The Estate of Carmilena Mburu

Court of Appeal
7 May 2021
1,037 words in judgment
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The bottom line

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Kenya's Court of Appeal refused to pause a land case, confirming that staying proceedings requires both an arguable appeal and real risk of futility.

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 (Koome, Asike-Makhandia and Sichale, JJ.A) delivered on 7th May 2021 in an application by Telesource Com Limited for stay of proceedings in Environment and Land Court Case No. 1180 of 2014 pending an intended appeal. The intended appeal challenged the ruling of Obaga, J dated 24th January 2019 dismissing the applicant's preliminary objection to the production of documents by the 4th to 7th respondents, which the applicant contended had been obtained by the Ethics and Anti-Corruption Commission when it was not properly constituted. The applicant argued the intended appeal would be rendered nugatory absent stay and that it would suffer substantial loss if the documents were not expunged. The respondents countered that the documents had been filed by consent of all parties with leave of the court, and that costs alone cannot render an interlocutory appeal nugatory. The court applied the two-limb test for stay: arguability and nugatory aspect, both of which must be satisfied. It doubted that the applicant had an arguable appeal for three reasons: the witness had already testified, so stay would be an act in vain; there is no automatic right of appeal from preliminary objection rulings under Order 43 of the Civil Procedure Rules and no leave had been obtained, making the proceedings incompetent; and the documents were introduced by consent. The application was dismissed with costs to the respondents. The decision does not disturb the ruling of the High Court; it simply refuses stay.

Key legal issues

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01

Whether the intended appeal against the dismissal of the preliminary objection was arguable

Holding

The court doubted arguability: the documents were filed by consent of the parties with leave of the court, the applicant's witness had already testified, and the proceedings were incompetent for want of leave to appeal a preliminary objection ruling.

Reasoning

The applicant's witness had testified in chief and been partly cross-examined before the objection was raised, so stay would achieve nothing and courts do not act in vain. The impugned documents were introduced by consent with leave. Further, no automatic right of appeal lies from preliminary objection rulings under Order 43, and no leave was obtained, rendering the proceedings incompetent. Arguability was therefore not demonstrated.

p. 2
02

Whether the nugatory-ingredient test was satisfied

Holding

Not reached: having found the intended appeal not arguable, the court did not consider the nugatory aspect.

Reasoning

The court reiterated the two-limb test from Stanley Kangethe Kinyanjui v. Tony Ketter. Since the applicant failed on the first limb of arguability, it was unnecessary to consider whether the intended appeal would be rendered nugatory absent stay. The respondents had argued that costs alone cannot render an interlocutory appeal nugatory.

p. 2

Legal principles established

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  • An applicant for stay of proceedings or stay of execution pending appeal must satisfy both limbs: that the appeal (or intended appeal) is arguable, and that it would be rendered nugatory absent stay.
  • There is no automatic right of appeal against rulings emanating from preliminary objections; leave of the trial court or this court must first be sought and obtained.

Court orders

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  1. 1.The applicant's notice of motion dated 12th February 2019 seeking stay of proceedings in ELC Case No. 1180 of 2014 is dismissed
  2. 2.Costs of the application awarded to the respondents
On appeal from
Environment and Land Court at Nairobi
ELC Case No. 1180 of 2014
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules (application for stay of proceedings pending intended appeal); appeal lies from the Environment and Land Court

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, "Telesource Com Limited v Muchanga Investment Limited, Habenga Holdings Limited, Jina Enterprises Limited Director of Survey, Director Physical Planning Ministry of Lands & Housing, Registrar of Titles Ministry of Lands & Housing, Chief Land Registrar Ministry of Lands and Housing John Mugo Kamau Catherine Nga’ng’a, For The Estate of Carmilena Mburu", Case Analysis (2021). Civil Application No. 297 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/597/eng@2021-05-07

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