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Court of AppealDismissedCivil Appeal No. COACA/E825/2024 (application)

Galot Holdings Limited v Manchester Outfitters Limited & 5 others (Civil Appeal (Application) E825 of 2025) [2025] KECA 1597 (KLR)

Court of Appeal
3 October 2025
2,386 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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The Court of Appeal refused to pause the land dispute trial, ruling that Galot Holdings can still appeal later if it loses before the Environment and Land Court.

What this practically means

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Executive summary

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By a motion dated 11th November 2024 under Rule 5(2)(b) of the Court of Appeal Rules, 2022, Galot Holdings Limited sought a stay of proceedings in Nairobi ELC Case No. 358 of 2012 pending the hearing of its appeal against a ruling of O.A. Angote, J. delivered on 19th September 2024, which reviewed and set aside orders of 31st October 2018 by which S. Okongo, J. had dismissed the suit for want of prosecution. The underlying dispute concerns LR No. 24092 (Grant No. IR 79398), with the respondents claiming beneficial ownership and a resulting trust, alleging fraudulent transfer to the applicant. The applicant argued res-judicata, citing a ruling of 15th August 2013 finding no fraud, and asserted the learned Judge exceeded the limits of review by relying on 'any other sufficient reason' after finding no apparent error on the face of the record. The respondents opposed, noting non-disclosure of a dismissed stay application and that the discretion below had not been shown to be improperly exercised. The Court accepted that the appeal was arguable, a single arguable point sufficing, but held the applicant failed the nugatory test: the claims had never been determined on merits, and any outcome before the ELC, including cancellation of title, is reversible on appeal or compensable in damages. Emphasising that an order staying proceedings is a serious and grave judicial intervention to be exercised sparingly, the Court dismissed the application and ordered the applicant to pay the respondents' costs, costs following the event. The substantive appeal remains pending before the Court of Appeal.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the applicant has established that its appeal is arguable
  2. 2.Whether the appeal will be rendered nugatory if the proceedings before the ELC are not stayed pending the appeal

Key legal issues

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01

Whether the appeal was arguable

Holding

The applicant raised arguable grounds, particularly on the application of the 'any other sufficient reason' ground of review and res-judicata, though arguability does not mean the grounds will succeed.

Reasoning

The Court found the challenge to the learned Judge's revisiting of the directorship delay issue, already rejected by S. Okongo, J., was not frivolous. It stressed that the role at this stage is to ensure arguments are fully heard on merits, not to decide whether they will succeed. The apparent misapplication of the 'any other sufficient reason' ground was also arguable.

p. 4
02

Whether the appeal would be rendered nugatory if stay of proceedings was not granted

Holding

The applicant failed the nugatory test because the suit had been dismissed for want of prosecution, never heard on merits, and any outcome before the ELC remains reversible on appeal.

Reasoning

The Court reasoned that the claims had received no meritorious determination. If the applicant loses before the ELC, it can still appeal to the Court of Appeal, so it would not suffer irreparable harm. Reliance Bank establishes that reversibility or compensability in damages defeats the nugatory test. Stay of proceedings is a grave intervention to be exercised sparingly and in exceptional circumstances, which were not shown.

p. 5

Legal principles established

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  • Under Rule 5(2)(b), an applicant for stay of proceedings pending appeal must establish that the appeal is arguable and that it will likely be rendered nugatory if stay is not granted
  • A single arguable point suffices to meet the arguability threshold; an arguable appeal is one that is not idle or frivolous
  • The power to stay proceedings is discretionary and should be exercised sparingly and only in exceptional cases
  • Whether an appeal will be rendered nugatory depends on whether what is sought to be stayed is reversible or, if not, whether damages will reasonably compensate the aggrieved party

Court orders

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  1. 1.The application for stay of proceedings in Nairobi ELC Case No. 358 of 2012 is dismissed
  2. 2.The applicant to pay the costs of the application to the respondents

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
Nairobi ELC Case No. 358 of 2012
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules, 2022

Relief refused

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Stay of proceedings in Nairobi ELC Case No. 358 of 2012 pending the hearing and determination of the appeal

The applicant failed to establish that the appeal would be rendered nugatory if the proceedings were not stayed; the claims had never been heard on merits and any adverse outcome is reversible on appeal

p. 5

Costs

Costs follow the event. The applicant pays the costs of the application to the respondents.

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.

Whether this Court is dealing with an application for stay, an application for injunction or an application for stay of proceedings, the applicant has to establish that the appeal is arguable, and that the appeal will likely be rendered nugatory, if stay of the application is not granted and the appeal succeeds
p. 3Rule 5(2)(b) threshold
An arguable appeal is one that is not idle or frivolous. A single arguable point is suficient to meet the threshold
p. 3Arguability standard
the power to stay proceedings which is discretionary, should be exercised sparingly and only in exceptional cases where the proceedings are shown to be frivolous, vexatious, where they are manifestly groundless or lastly where it is clearly shown that there is no cause of action.
p. 4Discretion to stay proceedings
We consequently find that the applicant has failed to establish that the appeal will be rendered nugatory if the proceedings before the ELC are not stayed. We dismiss the application.
p. 5Disposition - nugatory test not met
Costs follow the event. We order that the applicant pays the costs of the application to the respondents.
p. 5Final orders on costs

Issues in the judgment

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minor

The judgment inconsistently describes the earlier dismissal as for want of prosecution in paragraph 1 but refers to the Judge having 'dismissed the suit for want of jurisdiction' in paragraph 6, and later confirms dismissal for want of prosecution

minor

The judgment states 'We do not want to point out that whether or not the learned Judge misapplied the principle of "any other suficient" to the facts of the application would be another arguable ground', an apparently self-contradictory formulation

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, "Galot Holdings Limited v Manchester Outfitters Limited & 5 others (Civil Appeal (Application) E825 of 2025) [2025] KECA 1597 (KLR)", Case Analysis (2025). Civil Appeal No. COACA/E825/2024 (application). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/1597/eng@2025-10-03

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