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Court of AppealDismissedCivil Application No. E088 of 2023 (Notice of Motion dated February 16, 2023)· [2023] KECA 554 (KLR)

Mohammed Bulle v Mehta International Ltd & 1 other

Court of Appeal of Kenya
12 May 2023
2,663 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Court of Appeal refused to pause contempt orders and judicial review proceedings because the applicant's proposed appeal raised no serious arguable issue.

What this practically means

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Executive summary

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This is a single-judgment decision of a three-judge bench of the Court of Appeal at Nairobi (Musinga, P, Laibuta and Ngenye-Macharia, JJAA) delivered on May 12, 2023, dismissing an application under rule 5(2)(b) of the Court of Appeal Rules. The dispute arose from directives issued on November 8, 2021 by the Cabinet Secretary in the Ministry of Agriculture to the Chairman of Agrochemical and Food Company Limited (ACFC), a State corporation in which the Government held 56% of shares, directing termination of the management contract with The Mehta Group Management Limited and replacement of CEO Ashok Agarwal. The respondents obtained ex parte leave for judicial review from Ndung'u, J, and on June 29, 2022 leave was ordered to operate as a stay of the directives and suspension of the termination. Citing contempt of those orders, the respondents successfully moved the High Court, which by a ruling of January 19, 2023 directed the applicant (the ACFC Chairman), the Cabinet Secretary and Timothy Ogwang' to appear and purge the contempt in default of sentencing and arrest. The applicant sought stay of that ruling and of the judicial review proceedings pending appeal. The Court held the intended appeal was not arguable: the draft grounds merely restated the decision below or attacked the merits of the still-pending judicial review application. Having failed the first limb of the twin principle, the second (nugatory) limb did not arise. On stay of proceedings, the Court reiterated that it is a grave judicial action to be exercised sparingly and only in exceptional cases, finding nothing frivolous, vexatious or manifestly groundless in the proceedings. The Motion was dismissed with no orders as to costs.

Key legal issues

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01

Whether the intended appeal was arguable under rule 5(2)(b)

Holding

The draft memorandum of appeal disclosed no substantive issues of law or fact deserving the Court's inquiry; the appeal was not arguable and the second limb of the twin principle did not arise.

Reasoning

Examining the seven draft grounds, only the first states the trial court's decision; grounds 2, 3, 4, 6 and 7 touch the merits of the pending judicial review application, while ground 5 cannot stand alone. Consequently the applicant failed the first limb of the twin principle and stay of execution could not issue.

p. 4
02

Whether stay of proceedings in the trial court should issue pending appeal

Holding

Stay of proceedings is a grave judicial action to be exercised sparingly and only in exceptional cases; nothing suggested the proceedings were frivolous, vexatious or manifestly groundless.

Reasoning

The Court distinguished stay of execution from stay of proceedings, adopting the stringent test in Kenya Wildlife Service vs James Mutembei and Halsbury's Laws of England. Because the proceedings were not shown to be manifestly groundless or harassing, the discretionary power could not be exercised in the applicant's favour.

p. 5
03

Nature of the contempt ruling under appeal

Holding

The ruling merely required the contemnors to appear and confirm purging of the contempt, or explain why they could not; that door remained open, undermining any arguability.

Reasoning

The Court observed that the learned Judge only ordered the contemnors to appear in person on February 21, 2023 to confirm the purging of contempt in default of which they would be sentenced; they could still appear and explain, so the ruling was not of a character warranting appellate interference at the interlocutory stage.

p. 4

Legal principles established

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  • An applicant for stay under rule 5(2)(b) must satisfy both limbs of the twin principle: an arguable appeal and that the appeal would be rendered nugatory absent stay; if the first limb fails, the second need not be addressed.
  • Stay of proceedings pending appeal is a grave judicial action that seriously interferes with a litigant's right to conduct litigation, and the power to grant it is exercised sparingly and only in exceptional cases.

Court orders

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  1. 1.The Notice of Motion dated February 16, 2023 is dismissed with no orders as to costs
On appeal from
High Court of Kenya
Judicial Review Application No. E079 of 2022
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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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Mohammed Bulle v Mehta International Ltd & 1 other", Case Analysis (2023). Civil Application No. E088 of 2023 (Notice of Motion dated February 16, 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2023/554/eng@2023-05-12

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