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Court of AppealDismissedCivil Application (Motion dated 4th July 2025)

Gnecchi-Ruscone v Estate of Hermanus Phillipus Steyn (Civil Application E400 of 2025) [2025] KECA 2124 (KLR)

Court of Appeal of Kenya
5 December 2025
4,738 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~19 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal refused to pause a High Court fraud ruling because declarations and restraining orders cannot legally be stayed under Rule 5(2)(b).

What this practically means

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Executive summary

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By a motion under Rules 5(2)(b), 42 and 43 of the Court of Appeal Rules, 2020, the applicant sought a stay of execution of the judgment of Mugambi, J. delivered on 16th May 2025 in High Court Commercial Case No. E291 of 2013, and an order that the respondent deposit the judgment sum of USD 1,206,015.25 plus accrued interest as security. The High Court had set aside as null and void ab initio the 2017 judgment of Waweru, J. - previously affirmed by the Court of Appeal - on grounds of fraud, and ordered a retrial. The Court of Appeal (Kiage, Muchelule and Korir, JJA) treated the motion strictly as one for interim relief and declined to engage the merits. It accepted that the intended appeal is arguable, noting the deliberately low arguability threshold. It nevertheless dismissed the motion because the impugned orders - declarations and a restraining injunction - were not positive orders capable of execution and therefore incapable of being stayed; costs alone cannot be stayed; the applicant never sought a stay of the ordered retrial; and a stay cannot be used to reverse at the interlocutory stage what the High Court decided. The Court declined to deny the tainted-litigant applicant audience, holding that his right to fair hearing by appellate review must await the appeal, where the fraud findings will be determined with finality. The motion was dismissed with costs to the respondent, and the intended appeal was accorded priority once filed. No decision below was disturbed.

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)
  2. 2.Whether, absent a stay of execution, the intended appeal would be rendered nugatory
  3. 3.Whether the declarations and restraining injunction issued by the High Court are positive orders capable of execution and therefore capable of being stayed
  4. 4.Whether an order as to costs alone can be stayed of execution
  5. 5.Whether the Court can grant a stay of proceedings of the ordered retrial where none was sought

Key legal issues

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01

Arguability of the intended appeal

Holding

The intended appeal is arguable; the threshold for arguability is deliberately low and an arguable point need not necessarily succeed.

Reasoning

The Court found the draft memorandum raised plausible arguments about whether the High Court could set aside a judgment affirmed by the Court of Appeal, offend the principle of finality, and sit on appeal over a coordinate court's judgment. The Court refused to delve into the merits, which must await the appeal proper.

p. 7
02

Whether the impugned orders are capable of being stayed

Holding

The declaratory orders and the restraining injunction issued by the High Court are not positive orders, are unexecutable and cannot be stayed under Rule 5(2)(b).

Reasoning

The declarations merely stated answers and resolved questions; they required no party to do or refrain from doing anything or pay any sum. The injunction restrained the applicant from executing the fraud-tainted judgment - a restraining, not mandatory, injunction. A stay does not reverse or undo what has been done but merely suspends performance; it cannot issue against a negative order.

p. 7
03

Whether a stay can issue in respect of costs alone

Holding

No; costs stand alone and are not part of the judgment or decree, so an order as to costs alone cannot attract a stay of execution.

Reasoning

Costs are grantable to the successful party and are governed by their own regime of taxation, reference to a Judge and appeal under the Advocates Remuneration Order, which provides adequate remedies. The Court reiterated its half-century-old holding in Mandavia that a direction to pay costs is not itself sufficient to bring an order within the definition of a judgment requiring payment of money.

p. 8
04

Access to court by a litigant adjudged to have obtained judgment by fraud

Holding

The Court declined to deny the applicant audience on grounds of unclean hands, holding that the right to fair hearing by appellate review requires that he be heard, with the fraud findings to be interrogated at the hearing of the appeal.

Reasoning

While agreeing that obtaining judgment by fraud strikes at the heart of the administration of justice and endorsing the view that judges should be slow to favour litigants who use court process as an instrument of fraud, the Court held that the correctness of the fraud findings is a matter for the appeal bench, not the stay court. The applicant had exercised his undoubted right of appeal.

p. 6

Legal principles established

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  • A stay of execution under Rule 5(2)(b) may issue only against a positive order capable of execution; declarations and restraining (non-mandatory) injunctions are unexecutable and cannot be stayed.
  • An order for the payment of costs alone, without a substantive order requiring stay, is not capable of being stayed because costs are not part of the judgment or decree.
  • A court has no jurisdiction to grant to a party prayers not sought by that party; doing so would be gratuitous overreach.
  • A stay of execution cannot be granted where its effect would be to reverse, at the interlocutory stage, that which was decided by the High Court before the appeal itself is heard.
  • An applicant under Rule 5(2)(b) must satisfy the twin principles of an arguable appeal and that the appeal would be rendered nugatory absent the orders sought.

Court orders

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  1. 1.The motion dated 4th July 2025 is dismissed with costs to the respondent
  2. 2.The intended appeal, once filed, be accorded priority

The bench

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

majority

Wrote the judgment

majority
majority
On appeal from
High Court of Kenya
High Court Commercial Case No. E291 of 2013, Hermanus Phillips Steyn v Giovanni Gnecchi-Ruscone
Jurisdiction invoked
Rules 5(2)(b), 42 and 43 of the Court of Appeal Rules, 2020

Relief refused

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Stay of execution of the judgment of Mugambi J delivered 16th May 2025

The orders issued by the High Court were declarations and a restraining injunction - not positive orders - and are unexecutable and thus not capable of being stayed

p. 8

Order that the respondent deposit USD 1,206,015.25 plus interest into a joint interest-earning account as security

No positive executable order exists to which a security deposit could attach; the judgment that gave rise to the decretal sum was nullified for fraud

p. 8

Stay of execution of costs (Kshs. 501,295,720 claimed in the party and party bill of costs)

Costs stand alone, are not part of the judgment or decree, and are governed by a separate taxation regime; a direction to pay costs alone cannot be stayed

p. 8

Stay of proceedings in respect of the ordered retrial

Not sought by the applicant; the Court cannot grant prayers not sought

p. 8

Costs

The application is dismissed with costs to the respondent.

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.

The upshot of our consideration of this application is that it is devoid of merit and fails. The same is dismissed with costs to the respondent.
p. 8Disposition - dismissal of the Rule 5(2)(b) motion
We think that in it in the interest of justice and certainty that the intended appeal once filed be accorded priority.
p. 8Final order - priority of the intended appeal
In short, the orders given by the learned Judge were not positive orders, are unexecutable and are, therefore, not capable of being stayed by this Court under Rule 5 (2) (b).
p. 8Stay only of positive executable orders
A ‘stay’ does not reverse, annul, undo or suspend what already has been done or what is not specifically stayed nor pass on the merits of orders of the trial court, but merely suspends the time required for performance of the particular mandates stayed, to preserve a status quo pending appeal
p. 7Nature and limits of a stay of execution
the Court has no jurisdiction to grant to a party prayers not sought by that party. That would be a case of gratuitous overreach on the part of the Court, and it would be acting devoid of jurisdiction.
p. 8No gratuitous relief - stay of retrial proceedings not sought
In the instant case the High Court has not ordered any of the parties to do anything, or refrain from doing anything or to pay any sum. There is nothing arising out of the High Court judgment for this court, in an application for a stay, to enforce or to restrain by injunction
p. 7Classic formulation on unexecutable orders (Western College, adopted)

Issues in the judgment

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minor

Internal inconsistency on the dates of death of the original respondent: the applicant's affidavit avers death on 29th May 2024 while the respondent's affidavit avers death on 24th June 2024.

minor

Internal inconsistency on the chronology of the prior litigation: the judgment states judgment was entered by Waweru, J. on 7.9.17 yet describes the respondent's appeal as Civil Appeal No. 171 of 2009, an appeal number predating the judgment it challenged; the appeal is elsewhere described as dismissed on 22.10.10.

minor

Typographical error in the citation of Macfoy vs. United Africa Co. Ltd, printed as [1061] 3 All ER 1169.

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, "Gnecchi-Ruscone v Estate of Hermanus Phillipus Steyn (Civil Application E400 of 2025) [2025] KECA 2124 (KLR)", Case Analysis (2025). Civil Application (Motion dated 4th July 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/2124/eng@2025-12-05

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