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Court of AppealDismissedNotice of Motion dated 14th May 2024 (intended appeal from High Court ruling of Mwangi, J dated 7th May 2024)

Muguna v Muhu Holdings Co Ltd (Civil Application E221 of 2024) [2024] KECA 1465 (KLR)

Court of Appeal of Kenya
25 October 2024
2,431 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal refused to stop a tenant's eviction, confirming you cannot stay a 'negative order' and ELC decisions on BPRT appeals are final.

What this practically means

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Executive summary

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This was a single-judge-panel-free application before a three-judge bench of the Court of Appeal at Nairobi (Musinga, Asike-Makhandia and Mativo, JJA) in which a tenant sought, under sections 3A and 3B of the Appellate Jurisdiction Act and rule 5(2)(b) of the Court's Rules, a stay of execution of a High Court (ELC) ruling by Mwangi, J delivered on 7th May 2024, together with mandatory injunctions restraining or reversing his eviction from business premises on LR No. 209/681/2. The underlying litigation traced back to BPRT references dismissed on 13th March 2020, an ELC appeal (No. 16 of 2020) dismissed by Eboso, J on 2nd February 2021, a BPRT review ruling of 5th November 2021, and a final ELC decision striking out the tenant's appeal as res judicata and incompetent, the ELC holding that it lacked jurisdiction since section 15 of the Act makes the ELC the final appellate forum for BPRT appeals. The respondent opposed, contending the application was an abuse of process and that the Court lacked jurisdiction as there was no pending appeal capable of being rendered nugatory. The Court applied the twin rule 5(2)(b) principles from Trust Bank v Investech and Kang'ethe v Ketter, found the intended appeal not arguable - the constitutional claims were new matters not raised below and the premises-identification point was not an issue before the ELC - and held that the struck-out appeal produced a negative order incapable of execution, citing Chege v Gachora. Having failed the first limb, the Court declined to consider the nugatory limb and refused the mandatory injunction. The application was dismissed with costs to the respondent.

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 under rule 5(2)(b) of the Court of Appeal Rules
  2. 2.Whether, if the orders sought are not granted and the appeal succeeds, the appeal would be rendered nugatory
  3. 3.Whether the Court can grant a stay of execution of, or a mandatory injunction in respect of, a negative order striking out an appeal

Key legal issues

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01

Twin principles for relief under rule 5(2)(b)

Holding

The applicant must satisfy both limbs - that the appeal is arguable and that it will be rendered nugatory if stay is denied; failure of one limb disposes of the application

Reasoning

The Court restated that rule 5(2)(b) jurisdiction is original and discretionary, guided by the interests of justice. The arguability limb requires at least one bona fide arguable ground that is not frivolous, and the nugatory limb is considered only if arguability is established. Both limbs must be demonstrated to the Court's satisfaction.

p. 4
02

Arguability of the intended appeal

Holding

The draft memorandum of appeal disclosed no arguable point of law; the constitutional violations asserted were new matters not ventilated before the ELC

Reasoning

The Court examined the draft memorandum and grounds and found the appeal not arguable. The constitutional rights claims were new matters not raised before the ELC and did not deserve interrogation; the alleged discrepancy in the business premises identification was not an issue before the ELC, and the BPRT had visited the locus in quo and was satisfied as to the applicant's tenancy.

p. 4
03

Stay of a negative order

Holding

An order striking out an appeal is a negative order incapable of execution and cannot be stayed

Reasoning

Since the appeal below was struck out, the resulting order was negative - it directed no party to do or abstain from doing anything. Such an order is incapable of execution, so a stay of execution is conceptually unavailable, following Chege v Gachora.

p. 4

Legal principles established

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  • A negative order, one that does not order any party to do or refrain from doing anything, is incapable of execution and cannot be the subject of an order for stay of execution
  • Section 15 of the Business Premises (Hotels, Shops and Catering Establishments) Act bars appeals to the Court of Appeal from a decision of the ELC on appeal from the BPRT; the ELC decision is final

Court orders

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  1. 1.The application dated May 14, 2024 is hereby dismissed
  2. 2.The applicant shall bear the costs of the application

The bench

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

majority
majority
majority
On appeal from
Environment and Land Court (High Court)
Application to strike out record of appeal in appeal against BPRT ruling of 5th November 2021
Jurisdiction invoked
Sections 3A and 3B of the Appellate Jurisdiction Act and rule 5(2)(b) of the Court of Appeal Rules

Relief refused

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Stay of execution of the judgment and decree of Mwangi, J dated 7th May 2024

The intended appeal was not arguable and the order struck out was a negative order incapable of execution

p. 4

Mandatory injunction restraining eviction and/or restoring the applicant to the suit premises with damages

Both rule 5(2)(b) limbs must be satisfied; having failed the first, the mandatory injunction could not issue

p. 4

Costs

The applicant shall bear the costs of the application.

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.

In conclusion, we are satisfied that the applicant has not satisfied the two prerequisites. Accordingly, the application dated May 14, 2024 is hereby dismissed. The applicant shall bear the costs of the application.
p. 5Final orders - dismissal of the application with costs
The order being negative, as it did not order any of the parties to do anything or restrain them from doing anything is incapable of execution and thus the Court cannot order stay of execution of such negative order.
p. 4Stay of execution unavailable for negative orders
An arguable appeal is not one which must necessarily succeed, but one which ought to be argued fully before the court; one which is not frivolous.
p. 4Definition of an arguable appeal under rule 5(2)(b)
We are aware that section 15 of the Act bars appeals to this Court from a decision of the ELC on appeal from the decision of BPRT.
p. 4Finality of ELC decisions on BPRT appeals

Issues in the judgment

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minor

The judgment does not print the names of the parties or a case/appeal number for the application or the intended appeal; the case title and case number are reconstructed from the body of the ruling and reference to the ruling of Mwangi, J dated 7th May 2024

minor

The coram lists 'D. K. MUSINGA, (P)' as President of the Court of Appeal, not a Supreme Court judge; the title field records rank as JA consistent with the signature block, but the parenthetical '(P)' is not a standard rank suffix

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, "Muguna v Muhu Holdings Co Ltd (Civil Application E221 of 2024) [2024] KECA 1465 (KLR)", Case Analysis (2024). Notice of Motion dated 14th May 2024 (intended appeal from High Court ruling of Mwangi, J dated 7th May 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/1465/eng@2024-10-25

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