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ELCDismissedCivil Appeal (from Cooperative Tribunal Case No. 469 of 2010)· [2018] KEELC 4172 (KLR)

Dekoma Slaughter House Meat Vendors & Livestock Dealers Co-operative Society v Maina Mamo Mato [2018] KEELC 4172 (KLR)

High Court of Kenya
9 March 2018
2,217 words in judgment
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The bottom line

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The High Court in Thika refused to pause collection of a Kshs 149,000 Tribunal award because the co-operative could not prove the winner couldn't repay if the appeal succeeded.

What this practically means

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Executive summary

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This is a ruling by L. Gacheru J at the High Court, Thika, on a Notice of Motion dated 25th January 2017 by Dekoma Slaughter House Meat Vendors & Livestock Dealers Co-operative Society, the appellant, seeking stay of execution of a Cooperative Tribunal judgment of 2nd December 2016 awarding Maina Mamo Mato Kshs 149,000 with interest and costs. The application was brought under Order 22 Rule 22, Order 51 Rule 1 of the Civil Procedure Rules and Sections 3A, 1A and 1B of the Civil Procedure Act. The appellant, through the affidavit of its chairman Hidris Haide, argued it would suffer substantial loss as the respondent had no known means or whereabouts to refund the decretal sum should the appeal succeed, and offered security. The respondent opposed, contending the application was not made expeditiously, the appeal was filed out of time without leave, and no security for costs was offered. Guided by Order 42 Rule 6(2) and authorities including Stephen Wanjohi v Central Glass Industries Ltd and Canvas Manufacturing Ltd, the court assessed the three conditions: substantial loss, unreasonable delay and security. It found no unreasonable delay given the vacation period, and noted the appellant's willingness to deposit the decretal sum, but held the appellant failed to establish substantial loss, the cornerstone of stay, since the allegation about the respondent's whereabouts was unproved and a successful litigant should not be denied the fruits of judgment merely for being poor. The application was dismissed entirely with costs to the respondent, and the appellant was directed to file the Record of Appeal within 30 days and set the appeal down for direction.

Key legal issues

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01

Substantial loss

Holding

The applicant failed to establish that it would suffer substantial loss if stay was not granted

Reasoning

The appellant's apprehension rested on an unproved allegation that the respondent had no known means or whereabouts. The court held that the burden lay on the appellant to prove this allegation, and that poverty of a successful litigant is not a ground for stay. Substantial loss is the cornerstone of an order for stay of execution.

p. 4
02

Unreasonable delay

Holding

The application was filed within a reasonable time given the court vacation, so no unreasonable delay

Reasoning

Judgment was delivered on 2nd December 2016, the Memorandum of Appeal filed on 4th January 2017 and the application on 25th January 2017. Since the period between 21st December and 13th January is not counted, the application satisfied the requirement of being made without unreasonable delay.

p. 4
03

Security

Holding

The security condition did not arise because substantial loss, the cornerstone, was not established

Reasoning

Although the appellant offered to deposit the decretal sum in an interest-earning account, the court held the issue of security did not apply since the appellant failed to substantiate substantial loss, and the successful respondent should not be deprived of the fruits of judgment on mere apprehension.

p. 4

Legal principles established

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  • A successful litigant should not be denied the fruits of judgment merely because he is poor; financial inability of a decree holder should not be the sole reason for allowing a stay
  • The applicant alleging that a decree holder cannot refund the decretal sum bears the burden of proving that allegation

Court orders

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  1. 1.Dismissal of the Notice of Motion dated 25th January 2017 seeking stay of execution
  2. 2.Costs of the application to the Respondent
  3. 3.Appellant to file the Record of Appeal within 30 days and set the appeal for direction under Sections 79(B) and 79(C) of the Civil Procedure Act

Authorities

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Legislation

  • Civil Procedure RulesOrder 22 Rule 22
  • Civil Procedure RulesOrder 51 Rule 1
  • Civil Procedure RulesOrder 42 Rule 6(2)
  • Civil Procedure ActSection 3A
  • Civil Procedure ActSection 1A
  • Civil Procedure ActSection 1B
  • Civil Procedure ActSections 79(B) and 79(C)

Cases cited (5)

  • Corporate Insurance Co. Ltd vs Emmy Cheptoo Letting & Puma Car Ltd
    Civil Appeal No. 124 of 2014
  • Gicheha Farm Ltd vs Kimani Mwangi T/A Taking Services & Supplies Enterprises
    (2015) eKLR
  • John Mwangi vs Joseph Ndiritu Wamathai
    (2016) eKLR
  • Canvas Manufacturing Ltd vs Stephen Reuben Karindutu
    Civil Appeal No. 158 of 1994
  • Stephen Wanjohi vs Central Glass Industries Ltd
    Nairobi High Court Civil Case No 6726 of 1991
On appeal from
Cooperative Tribunal
469 of 2010
Jurisdiction invoked
Sections 3A, 1A and 1B of the Civil Procedure Act and Order 22 Rule 22, Order 51 Rule 1 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, "Dekoma Slaughter House Meat Vendors & Livestock Dealers Co-operative Society v Maina Mamo Mato [2018] KEELC 4172 (KLR)", Case Analysis (2018). Civil Appeal (from Cooperative Tribunal Case No. 469 of 2010). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/4172/eng@2018-03-09

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