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Court of AppealDismissedNot stated in the judgment (Civil Application, Motion dated by Notice of Appeal of 3rd October 2023)· [2024] KECA 1100 (KLR)

Venture Holdings Limited v Waita (Civil Application E254 of 2024) [2024] KECA 1100 (KLR)

Court of Appeal
19 August 2024
1,080 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 dismissed Venture Holdings' bid for an unconditional stay, confirming it cannot 'review' a trial court's stay decision and that financial hardship is no excuse.

What this practically means

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Executive summary

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The applicant, Venture Holdings Limited, was the defendant in consolidated suits before the Environment and Land Court at Nairobi in which Wabwoto, J., on 21st September 2023, entered judgment against it for various sums totalling over Kshs.67 million, directing that upon payment the respondents hand over vacant possession of apartments, with each party bearing its own costs. The applicant sought and obtained a conditional stay of execution, conditioned on depositing Kshs.20,000,000 in a joint interest-earning account within 30 days, failing which the stay would lapse automatically. The applicant did not meet the condition; its application for review of the conditional stay was dismissed by Mbugua, J. on 29th April 2024. Neither the conditional-stay decision nor the review dismissal was appealed. Before the Court of Appeal (Kantai, Ali-Aroni and Achode, JJ.A), the applicant moved under rule 5(2)(b) of the Court of Appeal Rules and other provisions, seeking review and setting aside of the judgment orders and an unconditional stay pending appeal. The Court held that it had no jurisdiction to 'review' the trial court's decision, the provisions of the Civil Procedure Act and Rules invoked having no application, and that in any event the applicant had not satisfied the established principles - an arguable appeal and nugatory-ness - summarised in Stanley Kangethe Kinyanjui v Tony Ketter & Others. Financial hardship in meeting the condition was not a basis for stay. The Motion was dismissed with costs to the respondents.

Key legal issues

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01

Jurisdiction to review the conditional stay order

Holding

The Court cannot review the trial court's decision granting a conditional stay; the applicant's failure to appeal that decision or the dismissal of its review application is fatal

Reasoning

The trial court granted a conditional stay with a default clause; the applicant did not comply, sought review before the trial court and was refused, and never appealed either decision. It then asked the Court of Appeal to 'review' the decision, which that Court has no jurisdiction to do. Sections 1A, 3A and 80 of the Civil Procedure Act and the Civil Procedure Rules invoked have no application before the Court of Appeal.

p. 3
02

Merits of the stay application under rule 5(2)(b)

Holding

The applicant failed to demonstrate an arguable appeal and that it would be rendered nugatory absent stay; financial difficulty in meeting a condition of stay is not a ground for stay

Reasoning

Applying Stanley Kangethe Kinyanjui v Tony Ketter & Others, the applicant had to show an arguable (not frivolous) appeal and nugatory-ness. The Court found the principles unsatisfied. The applicant's claim of inability to raise the security of Kshs.20,000,000 due to economic hardship following the pandemic did not advance its case, and its grounds of opposition were irrelevant to the analysis.

p. 3

Legal principles established

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  • An applicant for stay of execution pending appeal must show the appeal is arguable and that it would be rendered nugatory absent stay
  • The Court of Appeal has no jurisdiction to review a trial court's decision on stay; the remedy is an appeal against that decision

Court orders

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  1. 1.The Motion is dismissed
  2. 2.Costs of the application awarded to the respondents

Authorities

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Legislation

  • Civil Procedure Actsection 1A
  • Civil Procedure Actsection 3A
  • Civil Procedure Actsection 80
  • Court of Appeal Rulesrule 5(2)(b)
  • Civil Procedure Rulesnot specified

Cases cited (1)

  • Stanley Kangethe Kinyanjui vs. Tony Ketter & Others
    [2013] eKLR
On appeal from
Environment and Land Court at Nairobi
Consolidated suits; related suit ELC 88 of 2019 mentioned
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules; sections 1A, 3A and 80 Civil Procedure Act cited by applicant but held inapplicable

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, "Venture Holdings Limited v Waita (Civil Application E254 of 2024) [2024] KECA 1100 (KLR)", Case Analysis (2024). Not stated in the judgment (Civil Application, Motion dated by Notice of Appeal of 3rd October 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/1100/eng@2024-08-19

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