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Court of AppealDismissedApplication dated 9th January 2023 (number not stated in judgment)· [2024] KECA 185 (KLR)

George Boniface Mbugua Alias George Boniface Nyanja v Mohammed Jawad Iqbal (sued As The Personal Representative of The Estate of Ghulam Rasool Janmohammed)

Court of Appeal
23 February 2024
1,423 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal refused to pause a Kshs.4.98 million money judgment because it can be repaid if the appeal succeeds.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (Omondi, Ali-Aroni and Mativo, JJAA) on a Notice of Motion dated 9th January 2023 brought under rule 5(2)(b) and 42(b) of the Court of Appeal Rules and sections 3A and 3B of the Appellate Jurisdiction Act, seeking stay of execution of a judgment of Angote J. of the Environment and Land Court delivered on 24th November 2022. The dispute over L.R. 1/387 Ngong Road, Nairobi, arising from a 1985 sale agreement, has run for over three decades. The ELC initially granted the applicant specific performance in 2018, but the Court of Appeal in Civil Appeal No. 242 of 2018 set aside that judgment and remitted the matter for assessment of mesne profits. Angote J. awarded the respondent Kshs.4,980,000/- in mesne profits, interest at court rates from filing of suit, and costs. The applicant sought stay, arguing his appeal was arguable and that execution would render it nugatory. Applying the twin test, the court found the intended appeal arguable, holding that a single non-frivolous ground suffices. However, the nugatory limb failed because the decree is a money decree recoverable if the appeal succeeds. The application was dismissed with costs to abide the outcome of the appeal, and the court directed a priority hearing date given the matter's three-decade history. The decision reiterates that a reversible money decree does not satisfy the nugatory threshold for stay.

Key legal issues

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01

Whether the intended appeal is arguable

Holding

The court found the applicant had raised arguable grounds concerning the assessment of mesne profits, the Kshs.1,500,000/- paid towards the purchase price, and the applicant's eviction in April 2020, which require ventilation on appeal.

Reasoning

Without delving into the merits of the grounds, the court reviewed the application, supporting affidavit, grounds of appeal, replying affidavit and submissions. It applied the settled principle that an arguable appeal need not succeed; it need only not be frivolous. The grounds on the assessment of mesne profits and the applicant's eviction were sufficient to cross the low arguability threshold.

p. 3
02

Whether the appeal would be rendered nugatory if stay is denied

Holding

The nugatory limb failed because the decree is a money decree; if the appeal succeeds, the sums paid can be recovered, so execution will not render the appeal nugatory.

Reasoning

The court applied the principle in Kenya Industrial Estate Limited v Mwachia that whether an appeal will be rendered nugatory depends on whether what is sought to be stayed is reversible, or if not reversible, whether damages would reasonably compensate the aggrieved party. Since this is a money decree capable of repayment upon a successful appeal, execution does not create an irreversible situation and the second limb of the twin test fails.

p. 3

Legal principles established

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  • To obtain stay under rule 5(2)(b), an applicant must satisfy the twin test: an arguable appeal (not frivolous, but not necessarily one that will succeed) and that the appeal will be rendered nugatory if stay is not granted.
  • A money decree which can be repaid if the appeal succeeds is not rendered nugatory by execution, so stay will ordinarily be refused.
  • A single arguable ground of appeal suffices to meet the arguability threshold under rule 5(2)(b).

Court orders

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  1. 1.The application for stay of execution dated 9th January 2023 is dismissed
  2. 2.Costs to abide the outcome of the appeal
  3. 3.The matter to be given a priority hearing date
On appeal from
Environment and Land Court at Nairobi
ELC Case No. 1107 of 2013
Jurisdiction invoked
Rule 5(2)(b) and 42(b) of the Court of Appeal Rules and Sections 3A and 3B of the Appellate Jurisdiction Act, Cap 9

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, "George Boniface Mbugua Alias George Boniface Nyanja v Mohammed Jawad Iqbal (sued As The Personal Representative of The Estate of Ghulam Rasool Janmohammed)", Case Analysis (2024). Application dated 9th January 2023 (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/185/eng@2024-02-23

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