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Court of AppealAllowedCivil Application No. NAI 166 of 2020

Gicheha Farms Limited & another v David Gicheru [2021] KECA 728 (KLR)

Court of Appeal
19 March 2021
1,019 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 enforcement of a Kshs 1.65 million employment award because the employers were never properly notified of the judgment date.

What this practically means

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Executive summary

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This was an interlocutory ruling of the Court of Appeal at Nairobi (Koome, Musinga and M'inoti, JJ.A.) on an application for stay of execution under rule 5(2)(b) of the Court of Appeal Rules. The applicants, Gicheha Farms Limited and Brookside Dairy Limited, sought stay of the judgment of the Employment and Labour Relations Court (Wasilwa, J.) dated 21st January 2020, which awarded the respondent, a former plumber, a total of Kshs 1,650,806.11 for unlawful termination and violation of constitutional rights, including damages for use of his image in promotional material without consent. The applicants' intended appeal rests on the contention that they were denied a fair hearing: they were served with the respondent's submissions but were never served with notices of the various mentions or of the delivery of judgment, and the trial court's ruling of 28th May 2020 declined to set the judgment aside on that basis. The Court applied the settled two-limb test for stay under rule 5(2)(b): an arguable appeal and the nugatory principle. It found the appeal arguable on the fair-hearing point, and found the nugatory limb satisfied because the respondent, earning Kshs 10,620 monthly, had not shown means to repay the decretal sum if the appeal succeeded, notwithstanding that the decree was a money decree. The Court granted stay of execution of the trial court's judgment until the hearing and determination of the intended appeal, with costs of the application to abide the appeal's outcome. The ruling does not disturb the decision below; it preserves the status quo pending appeal.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the intended appeal is arguable
  2. 2.Whether the intended appeal will be rendered nugatory unless stay of execution is granted

Key legal issues

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01

Whether the intended appeal was arguable

Holding

The Court found the intended appeal arguable on the ground of denial of the right to be heard, given that the applicants were never served with notices of mentions or the notice of delivery of judgment.

Reasoning

It was common ground that, apart from service of the respondent's submissions on 11th October 2019, the applicants were never served with notices of the various mentions ordered by the court, nor with the notice of delivery of judgment. The Court held that whether service of submissions alone, without any indication that replies were required and within what time, together with failure to serve notice of the judgment date, constitutes sufficient notice and a fair opportunity to be heard was a point fit for determination at the hearing of the intended appeal. That point was arguable and not frivolous.

p. 2
02

Whether the intended appeal would be rendered nugatory

Holding

The Court found the nugatory limb satisfied because the respondent, a former employee earning Kshs 10,620 per month, had not demonstrated means or ability to repay the substantial decretal sum if the appeal succeeded.

Reasoning

The applicants feared their former employee, who earned Kshs 10,620 per month, could not repay the amounts awarded if the appeal succeeded. Although the respondent characterised the decree as a money decree, he did not advert to his means and ability to repay the decretal amount should the intended appeal succeed. In those circumstances the Court was satisfied both requirements under rule 5(2)(b) were met and granted stay until the hearing and determination of the intended appeal.

p. 2

Legal principles established

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  • To obtain stay of execution under rule 5(2)(b), an applicant must establish that the intended appeal is arguable and that it will be rendered nugatory unless stay is granted.
  • Whether an intended appeal will be rendered nugatory depends on the circumstances of each case.
  • Where a respondent does not advert to their means and ability to repay a decretal amount should the intended appeal succeed, the nugatory test may be satisfied notwithstanding that the decree is a money decree.

Court orders

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  1. 1.An order of stay of execution of the judgment of the trial court dated 21st January 2020 until the hearing and determination of the intended appeal
  2. 2.Costs of the application to abide the outcome of the intended appeal

The bench

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One judgment of the whole court — no separate or dissenting opinions.

Martha Karambu Koome
M. K. KoomeJA
Currently serving
majority

Wrote the judgment

majority
majority
On appeal from
Employment and Labour Relations Court of Kenya at Nairobi
ELRC Pet. No. 103 of 2018
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

to entitle the applicants to an order of stay of execution under rule 5(2) (b) of this Court’s Rules, they must establish that their intended appeal is arguable, and that unless we grant an order of stay of execution, it will be rendered nugatory if it succeeds
p. 2Requirements for stay of execution under rule 5(2)(b)
As regards whether the intended appeal will be rendered nugatory, this will depend on the circumstances of each case.
p. 2Nugatory test is fact-specific
We grant an order of stay of execution of the judgement of the trial court dated 21st January 2020 until the hearing and determination of the intended appeal. Costs of this application shall abide the outcome of the intended appeal.
p. 2Final orders - stay granted and costs abiding 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, "Gicheha Farms Limited & another v David Gicheru [2021] KECA 728 (KLR)", Case Analysis (2021). Civil Application No. NAI 166 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/728/eng@2021-03-19

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