Wadia Construction Company Limited v Synergy Industrial Credit Limited & 1 other
The bottom line
#Kenya's Court of Appeal refused to stop the repossession and sale of 49 financed vehicles, ruling that money damages could adequately compensate the borrower if the appeal later succeeded.
What this practically means
#Executive summary
#Key legal issues
#Test for injunction pending appeal under rule 5(2)(b)
The applicant must satisfy both the arguability and nugatory limbs; arguability alone is insufficient
The Court found some grounds of appeal arguable but held that the applicant failed the second limb. The applicant did not allege the 1st respondent could not compensate it, and the 1st respondent affirmed its capacity to compensate. Loss was therefore quantifiable and the appeal would not be rendered nugatory.
Stay of proceedings pending appeal
Stay of proceedings requires demonstration of exceptional circumstances, none of which was shown
Relying on the Supreme Court's decision in James Nthuku Kithinji, the Court held that stay of proceedings is an extraordinary remedy granted only in exceptional circumstances. The applicant demonstrated none, so the prayer was declined.
Legal principles established
#- An applicant under rule 5(2)(b) must demonstrate that the appeal is arguable and that it will be rendered nugatory if the orders are not granted; one arguable ground suffices for the first limb
- An appeal will not be rendered nugatory where the loss claimed is quantifiable and the respondent is able to compensate the applicant
- A stay of proceedings pending appeal can only be granted in exceptional circumstances
Court orders
#- 1.Dismissal of the notice of motion dated 19th June 2025
- 2.Costs of the application to the respondents
- On appeal from
- High Court
- HCCOMM No. E604 of 2024
- Jurisdiction invoked
- Rule 5(2)(b) of the Court of Appeal Rules
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Wadia Construction Company Limited v Synergy Industrial Credit Limited & 1 other", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/2020/eng@2025-11-28
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.