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ELCAllowedNotice of Motion dated 8th January 2015 (appeal from Co-operative Tribunal Award of 9th December 2014)· [2015] KEELC 804 (KLR)

Ufundi Savings & Credit Co-operative Society Ltd & others v Francis Gitari Ndirangu & 318 others [2015] KEELC 804 (KLR)

High Court of Kenya
17 July 2015
MGMARY M. GITUMBI
1,183 words in judgment
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The bottom line

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Kenya's High Court halted a Tribunal order transferring Ufundi Sacco Plaza, but the Sacco must deposit all rental income in court while the appeal proceeds.

What this practically means

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Executive summary

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This is a ruling on a Notice of Motion dated 8th January 2015 in which the Appellant/Applicant, a Sacco and registered proprietor of Ufundi Sacco Plaza on L.R. No. 209/2571, sought stay of the Co-operative Tribunal's Award of 9th December 2014 pending appeal. The Tribunal, by majority (Mr. Ochich and Ms. Jillo, the Chairman dissenting), had ordered the suit property transferred to the Respondents, members who opposed the Sacco's sale of the property authorised by a members' general meeting of 29th April 2010. The application was brought under Order 42 rule 6(1) and (6) of the Civil Procedure Rules, 2010. The Respondents, representing some 15,000 members, opposed, arguing that stay would deprive them of the fruits of a judgment delayed over 15 years, and that the Award excused the Sacco from accounting for about Kshs. 500 million in rental income. The 1st Interested Parties supported the application. Mary M. Gitumbi J found substantial loss would result since transfer of the property would render the appeal nugatory; the application was filed without unreasonable delay (appeal lodged 9th January 2015); and as security, the property was to remain intact while all rental proceeds were deposited in court. The application was allowed on those terms, with costs in the cause.

Key legal issues

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01

Whether the applicant satisfied the conditions for stay under Order 42 rule 6(2)

Holding

Stay granted: substantial loss shown, no unreasonable delay, and security imposed in the form of deposit of rental income into court.

Reasoning

The court found that transfer of the suit property pending appeal would render the appeal nugatory, constituting substantial loss. The appeal was filed promptly on 9th January 2015 after the 9th December 2014 Award, showing no unreasonable delay. As security, the property was to remain intact and rental proceeds deposited in court, ensuring the respondents suffer no loss if they ultimately succeed.

p. 2

Legal principles established

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  • Substantial loss may be established where, absent a stay, the appeal will be rendered nugatory and the applicant will lose the subject property.

Court orders

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  1. 1.Stay of the Award/Judgment of the Co-operative Tribunal delivered on 9th December 2014 granted pending the hearing and determination of the appeal
  2. 2.The suit property shall remain intact during the hearing of the appeal until its determination
  3. 3.The Appellant/Applicant to deposit all rental proceeds/income from the suit property to the court for safekeeping pending the hearing and determination of the appeal

Authorities

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Legislation

  • Civil Procedure Rules, 2010Order 42 rule 6(1) and (6)
  • Civil Procedure Rules, 2010Order 42 rule 6(2)
  • Sacco Act 2008 Regulations
On appeal from
Co-operative Tribunal
Jurisdiction invoked
Order 42 rule 6(1) and (6) of the Civil Procedure Rules, 2010

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, "Ufundi Savings & Credit Co-operative Society Ltd & others v Francis Gitari Ndirangu & 318 others [2015] KEELC 804 (KLR)", Case Analysis (2015). Notice of Motion dated 8th January 2015 (appeal from Co-operative Tribunal Award of 9th December 2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2015/804/eng@2015-07-17

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