Uzuri Foods Limited v Ngwenze & 169 others (Civil Application E067 of 2024) [2024] KECA 1226 (KLR)
The bottom line
#Kenya's Court of Appeal refused to freeze Kshs.5 million already paid to 170 former employees, ruling a stay is pointless once the money is gone.
What this practically means
#Executive summary
#Key legal issues
#Whether the intended appeal is arguable
The draft grounds - that the Judge erred in failing to evaluate the evidence, in allowing the release application despite a pending extension-of-time application in the Court of Appeal, and in directing release of the security deposit - are arguable and not idle grounds
The Court applied the established rule 5(2)(b) threshold, drawing on Damji Pragji Mandavia vs. Sara Lee Household & Bodycare (K) Ltd, holding that the draft grounds of appeal in the Memorandum raised real issues meriting full consideration, satisfying the first limb of the test even though they may not ultimately succeed.
Whether the appeal will be rendered nugatory absent stay
It will not, because the Kshs.5,000,000 security deposit had already been released to the respondents on 19th February, 2024, leaving nothing in the bank account capable of being preserved by a stay order
The Court found that the money deposited at Stanbic Bank, Upperhill Branch pursuant to the conditional stay order of 31st May, 2021 had been released pursuant to the ruling under appeal. With the res gone, no 'don't release' order could issue and the nugatory test failed, disposing of the motion.
Legal principles established
#- An applicant under rule 5(2)(b) must demonstrate that the appeal or intended appeal is arguable and that it will be rendered nugatory absent stay
- An arguable ground of appeal is not one that will necessarily succeed, but one that calls for full consideration by the Court
Court orders
#- 1.The Motion is dismissed
- 2.Costs of the motion awarded to the respondents
- On appeal from
- Employment and Labour Relations Court
- Not stated in the judgment
- Jurisdiction invoked
- Rules 1(2) and 5(2)(b) of the Court of Appeal Rules, 2020
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Uzuri Foods Limited v Ngwenze & 169 others (Civil Application E067 of 2024) [2024] KECA 1226 (KLR)", Case Analysis (2024). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/1226/eng@2024-09-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.