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ELCDismissedNotice of Motion dated 9th October 2017 (Nyahururu ELC)· [2018] KEELC 4237 (KLR)

Arthur Mathitu Nderitu & another v Settlement Fund Trustees & 2 others [2018] KEELC 4237 (KLR)

Environment and Land Court
26 February 2018
2,987 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan landowner lost his bid to pause execution of a judgment because he waited five years, showed no real loss, and offered inadequate security.

What this practically means

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Executive summary

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This was a ruling by the Environment and Land Court at Nyahururu (M.C. Oundo, J) on a Notice of Motion dated 9th October 2017 in which the Plaintiff/Applicant sought stay of execution of a decree issued on 4th May 2012 pending the hearing and determination of his appeal, Nairobi Civil Appeal No. 242 of 2012. The application was premised on Order 42 rule 6, Order 22 rule 22, Order 9 rule 9 and Order 51 rule 1 of the Civil Procedure Rules and Sections 1A, 1B and 3A of the Civil Procedure Act. The Applicant argued that the threatened execution of 3rd October 2017 was irregular because no notice to show cause had been issued more than a year after the decree, that he would suffer substantial loss rendering the appeal nugatory, and offered security of Ksh 160,000/-. The Respondent opposed, contending the applicant was in blatant disobedience of an eviction decree, had remained on the suit premises for five years, had not prosecuted his appeal, and that any security should be half of the value of the property. The court framed two issues: whether the conditions for stay under Order 42 Rule 6(2) were satisfied, and what orders to make. Applying the three conditions - substantial loss, absence of unreasonable delay, and security - the court found the applicant had not demonstrated substantial loss, had filed the application more than five years after the judgment and was guilty of laches and of not coming to court with clean hands, and that the offered security was minimal compared to the independently valued suit property worth Ksh 33,500,000/-. The application was dismissed with costs to the 2nd Defendant/Respondent.

Key legal issues

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01

Substantial loss

Holding

The applicant failed to demonstrate the substantial loss he would suffer; no evidence was provided on the kind of irreparable loss

Reasoning

The applicant contended that execution would create a state of affairs affecting the chances of success of the appeal, but the court found that no evidence was provided on the kind of irreparable loss he would suffer if stay was not granted. The burden of demonstrating substantial loss was on the applicant and was not discharged.

p. 4
02

Unreasonable delay and clean hands

Holding

The application filed on 9th October 2017, more than five years after the judgment of 22nd March 2012, was made with unreasonable delay and the applicant was guilty of laches and did not come to court with clean hands

Reasoning

Upon perusal of the court record, the application for stay was filed more than five years after the judgment appealed from. There was no explanation for the delay. The court held that the applicant could not be said to have acted without unreasonable delay, was guilty of laches, and did not come to court with clean hands.

p. 4
03

Security for due performance

Holding

The security offered of Ksh 160,000/- was minimal and/or inadequate compared to the value of the suit property at Ksh 33,500,000/-

Reasoning

The applicant offered to deposit Ksh 160,000/- in a joint interest account, but the agreed independent valuation by Fortune Realtors Ltd placed the suit land at Ksh 33,500,000/-. The court found the offered security quite minimal and/or inadequate in the circumstances, failing the third condition under Order 42 Rule 6(2).

p. 4

Legal principles established

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  • Substantial loss is what has to be prevented by preserving the status quo because such loss would render the appeal nugatory

Court orders

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  1. 1.The Plaintiff/Applicant's Notice of Motion dated 9th October 2017 is denied and dismissed
  2. 2.Costs of the application to the 2nd Defendant/Respondent

Authorities

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Legislation

  • Civil Procedure ActSection 1A
  • Civil Procedure ActSection 1B
  • Civil Procedure ActSection 3A
  • Civil Procedure RulesOrder 9 rule 9
  • Civil Procedure RulesOrder 22 rule 18
  • Civil Procedure RulesOrder 22 rule 22
  • Civil Procedure RulesOrder 42 rule 6
  • Civil Procedure RulesOrder 51 rule 1

Cases cited (1)

  • Mukuma V Abuoga
    (1988) KLR 645
On appeal from
High Court of Kenya at Nairobi
Jurisdiction invoked
Order 42 rule 6, Order 22 rule 22, Order 9 rule 9, Order 51 rule 1 of the Civil Procedure Rules; Sections 1A, 1B and 3A of the Civil Procedure Act

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, "Arthur Mathitu Nderitu & another v Settlement Fund Trustees & 2 others [2018] KEELC 4237 (KLR)", Case Analysis (2018). Notice of Motion dated 9th October 2017 (Nyahururu ELC). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/4237/eng@2018-02-26

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