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ELCDismissedNot stated in the ruling (High Court appeal from BPRT)· [2015] KEELC 48 (KLR)

Daniel Gicheru Karangu v Richard Gicheru Irungu [2015] KEELC 48 (KLR)

High Court of Kenya
19 November 2015
2,346 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan tenant appealing a rent tribunal ruling lost his bid to delay enforcement because he showed no substantial loss and offered no security.

What this practically means

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Executive summary

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This ruling by L N Waithaka J of the High Court at Nyeri, delivered on 19th November, 2015, determined two interlocutory applications arising from an appeal against a judgment of the Chairman of the Business Premises Rent Tribunal delivered on 26th June, 2015. The Tribunal had ordered the appellant, Daniel Gacheru Karangu, to pay rent arrears from April, 2013 to June, 2015 at Kshs.3,500 per month, to pay rent in advance, and to deliver vacant possession of premises where he operated a car wash by 31st December, 2015. By a notice of motion dated 30th July, 2015, the appellant sought stay of execution pending appeal, contending that execution would render the appeal nugatory. The respondent opposed, arguing the application was brought under the wrong provision, that no substantial loss was demonstrated, that there was delay, and that he was a man of means capable of refunding any decretal sum. At an interlocutory stage the court had directed the applicant to deposit Kshs.105,000 as security; the applicant then sought review, seeking to deposit only Kshs.20,000 and asking that the respondent first repay money he had invested in the premises. The court held that the invocation of Order 22 Rule 25 rather than Order 42 Rule 6 was a procedural defect causing no prejudice, and considered the application on the merits. Applying Order 42 Rule 6(2), the court found the delay of about five weeks not inordinate, but held that the applicant had not demonstrated substantial loss - a money decree rarely renders an appeal nugatory - and had offered no security, his claim against the respondent being a matter for the appeal. Both applications were dismissed with costs of the motion dated 30th July, 2015 awarded to the respondent.

Key legal issues

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01

Conditions for stay of execution pending appeal

Holding

All three conditions in Order 42 Rule 6(2) — substantial loss, no unreasonable delay, and security — must be satisfied; failure on substantial loss or security is fatal

Reasoning

The court adopted the reasoning in Elite Studios and Sammy Some Kosgei that the conditions are mandatory and that substantial loss is the epicentre of such applications. The applicant made only a bare assertion that execution would render the appeal nugatory, and instead of offering security, asked the court to order the respondent to repay his investment. The claim that the respondent owed him money was a matter for the appeal, not for the stay application.

p. 3
02

Effect of delay in filing the stay application

Holding

A delay of about five weeks was not inordinate so as to justify refusing the application

Reasoning

The judgment was delivered on 26th June, 2015 and the application filed on 30th July, 2015. Although this was a delay of slightly more than a month, the court held that it was not so inordinate as to form a basis for refusing the orders sought. The decisive failures were the absence of substantial loss and of security, not delay.

p. 4
03

Procedural defect in invoking Order 22 Rule 25 instead of Order 42 Rule 6

Holding

The wrong provision rendered the application procedurally defective, but the court addressed it on the merits since no prejudice was occasioned

Reasoning

The respondent argued the application was brought under the wrong provision. The court agreed that the applicable provision was Order 42 Rule 6, but applied the principle that a procedural defect which causes no prejudice to the other side should not defeat a determination on the merits. The application was therefore considered substantively and dismissed on the substantive conditions.

p. 3
04

Review of the security order

Holding

Review of the order to deposit the decretal sum was refused because the applicant had not offered any security

Reasoning

The applicant sought to deposit only Kshs.20,000 of the Kshs.105,000 decretal sum, with the balance after three months, citing loan obligations, and asked the court to compel the respondent to repay his investment in the premises. The court held that such a claim could not substitute for the legal obligation to furnish security for due performance of the decree.

p. 4

Legal principles established

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  • An applicant for stay pending appeal must demonstrate substantial loss by evidence, and offer security for due performance of the decree
  • An appeal out of a money decree would rarely be rendered nugatory

Court orders

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  1. 1.The notice of motion dated 30th July, 2015 and the application dated 29th September, 2015 for review are dismissed
  2. 2.Costs of the application dated 30th July, 2015 awarded to the respondent

Authorities

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Legislation

  • Civil Procedure RulesOrder 42 Rule 6 (and 6(2))
  • Civil Procedure RulesOrder 22 Rule 25
  • Civil Procedure RulesOrder 41 rule 4 (as referenced in Everlyn Jebitok Keter)

Cases cited (7)

  • Tropical Commodities Suppliers Ltd and Others v. International Credit Bank Ltd, in liquidation
    (2004) 2 E.A 331
  • Elite Studios Ltd & another v. International Hotels Ltd
    (2005) e KLR
  • Ann Wanjiru Waigwa & another v. Joseph Kiragu Kibarua
    Nyeri High Court Civil Appeal No.92 of 2009
  • Sammy Some Kosgei v. Grace Jelel Boit
    (2013) eKLR
  • Everlyn Jebitok Keter v. Henry Kiplagat Muge & 2 Others
    (2011) eKLR
  • Robert Ngaruiya Chutha vs. Joseph Chege Ndungu
    (2014) eKLR
  • Charles Wahome Gethi v. Angela Wairimu Gethi
    Civil Application No.302 of 2007 (2008) eKLR
On appeal from
Business Premises Rent Tribunal (BPRT)
Not stated
Jurisdiction invoked
Appellate jurisdiction over BPRT decisions; application under Order 42 Rule 6 of the Civil Procedure Rules

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, "Daniel Gicheru Karangu v Richard Gicheru Irungu [2015] KEELC 48 (KLR)", Case Analysis (2015). Not stated in the ruling (High Court appeal from BPRT). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2015/48/eng@2015-11-19

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