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ELCPartially AllowedNot stated in the judgment· [2017] KEELC 3258 (KLR)

Sugarland Estates Ltd v Uchumi Supermarket Ltd [2017] KEELC 3258 (KLR)

High Court of Kenya
23 March 2017
AOA. Ombwayo
426 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The High Court in Eldoret let Uchumi Supermarkets pay its Kshs.8.9 million court debt in monthly instalments of Kshs.700,000, but any missed payment triggers immediate execution.

What this practically means

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Executive summary

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The applicant, Uchumi Supermarket, as judgment debtor, sought leave to liquidate a decretal sum of Kshs.8,888,631.00 plus costs of the suit, taxed or to be taxed, by monthly instalments of Kshs.500,000, citing a dire financial crisis, liquidity challenges and an ongoing revival plan expected to restore its fortunes. Mr. Yego, for the plaintiff/decree holder, opposed the application in a replying affidavit, contending that the parties had already negotiated and concluded a final consent on payment, approved through the defendant's Finance Officer, Mr. Henry Kirwa Bett, acting for the Chief Executive Officer, and that the applicant's deponent, Carol Gaki Mungania, was approbating and reprobating by abandoning that agreement, exposing the plaintiff to execution in bad faith. He also maintained that the party-and-party costs agreed upon were modest given that the value of improvements, additions, alterations, equipment and fixtures claimed in prayer (d) of the plaint had been given by the defendant as Kshs.73,129,039.05. The court, per A. Ombwayo J at Eldoret, balanced the interests of the decree holder, the judgment creditor and the public who subscribed to shares in Uchumi Supermarket, and allowed payment by instalments but at Kshs.700,000 per month commencing 1st April 2017, with the first instalment due on 1st April 2017 and execution to issue in default of any instalment. The application thus succeeded only in part, the quantum sought being increased.

Key legal issues

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01

Whether the judgment debtor may satisfy the decree by instalments

Holding

Yes, but at Kshs.700,000 per month, not the Kshs.500,000 sought, with execution to issue on default.

Reasoning

The court weighed the judgment debtor's pleaded financial distress and revival plan against the decree holder's entitlement, and the public interest of shareholders in Uchumi Supermarket. It fixed instalments at a higher figure than requested and made the indulgence conditional: any missed instalment triggers execution.

p. 2
02

Whether a prior consent on settlement barred the application

Holding

The plaintiff contended the parties had agreed a final consent on payment; the court did not make a finding on this allegation.

Reasoning

Mr. Yego deposed that a consent was negotiated and approved through the defendant's Finance Officer, Mr. Henry Kirwa Bett, and that the defendant withheld a signed copy. The judgment's operative orders do not address this bad-faith allegation, proceeding instead to fix instalments.

p. 2

Legal principles established

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  • In deciding whether to permit payment of a decretal sum by instalments, the court must consider the interests of the decree holder, the judgment creditor and the public.

Court orders

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  1. 1.The judgment debtor is allowed to satisfy the decretal amount in monthly instalments of Kshs.700,000 with effect from 1st April 2017
  2. 2.The first instalment to be paid on 1st April 2017
  3. 3.In default of any instalment, execution to issue
Jurisdiction invoked
Inherent power of the High Court to order satisfaction of a decretal sum by instalments (not expressly cited in the judgment)

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, "Sugarland Estates Ltd v Uchumi Supermarket Ltd [2017] KEELC 3258 (KLR)", Case Analysis (2017). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/3258/eng@2017-03-23

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