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ELCDismissedNot stated in the judgment· [2019] KEELC 2976 (KLR)

In re estate of Peter Muriungi Kaunga (Deceased) [2019] KEELC 2976 (KLR)

Environment and Land Court
19 June 2019
4,192 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~17 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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The 1st defendant, Muthengi M'Mwathi Muthigu, moved the Environment and Land Court at Chuka by Notice of Motion under Article 159(2)(d) and (e) of the Constitution, Sections 80, 1A, 1B and 3A of the Civil Procedure Act and Order 45 Rules 1, 2 and 3 of the Civil Procedure Rules. He sought extension of time to comply with orders of 16th January 2019, review and setting aside of the condition requiring him to deposit security of Kshs.1,000,000/- for stay of execution of the judgment delivered on 19th December 2018, and leave to deposit the original title to parcel Tharaka/Chiakariga 'A'/1544 as alternative security. He deponed that he had only raised Kshs.100,000/- and held land valued at Kshs.3,000,000/-. The plaintiff, Lucy Karauki Kirambia, opposed, contending that court orders are not negotiating platforms, that no new matter or evidence justified review, and that the proper avenue to challenge the conditional stay was the Court of Appeal. The application was canvassed by written submissions. The court, per P. M. Njoroge J, held that deposit for security is not a procedural technicality under Article 159(2)(d) but a matter of law anchored in Order 42 Rule 6(1) and (2). It found the Kshs.100,000/= offer inadequate, questioned how a title deposited as security would be enforced, held a title would not constitute effective and adequate security, and found the applicant's potential loss compensable in monetary damages. The application was dismissed with costs to the plaintiff, delivered at Chuka on 19th June 2019.

Key legal issues

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01

Whether alternative security in the form of a title deed and a partial cash deposit of Kshs.100,000/- suffices under Order 42 Rule 6

Holding

The court declined to accept the title or the Kshs.100,000/- as adequate security for the due performance of the decree

Reasoning

The court reasoned that the Kshs.100,000/= offered would not ultimately suffice as security should the applicant lose the appeal. A land title raises enforcement difficulties: unlike bank collateral, no charge mechanism was proposed to bind the applicant, so a title would not be effective or adequate security. The applicant's potential loss was compensable in monetary damages, removing the basis for stay on altered terms.

p. 7
02

Whether the security condition was a procedural technicality curable under Article 159(2)(d)

Holding

The court held the deposit for security is a matter of law under Order 42 Rule 6, not a technicality

Reasoning

The applicant had invoked Article 159(2)(d) and (e) of the Constitution to suggest the court should temper the security requirement in the interests of substantive justice. The court rejected this, holding that the requirement to deposit security for the due performance of a decree is pellucidly a matter of law anchored in Order 42 Rule 6(1) and (2) and cannot be sidestepped as a procedural technicality.

p. 7
03

Whether the applicant demonstrated sufficient reason for review under Section 80 of the Civil Procedure Act and Order 45

Holding

No sufficient reason was demonstrated justifying review of the 16th January 2019 orders

Reasoning

Although counsel cited authorities on the breadth of the 'sufficient reason' ground for review, including Pancras T Swai v Kenya Breweries Ltd and Shanzu Investments Limited v Commissioner for Lands, the court was not persuaded. The applicant's impecuniosity and offer of a title as alternative security did not constitute sufficient reason, as the security requirement is a statutory prerequisite for stay and the proposed alternatives were inadequate.

p. 7

Legal principles established

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  • Deposit for security is not a procedural technicality but a matter of law anchored in Order 42 Rule 6(1) and (2) of the Civil Procedure Rules
  • A title to land offered as security for stay of execution does not constitute effective and adequate security

Court orders

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  1. 1.The application is dismissed
  2. 2.Costs are awarded to the plaintiff

Authorities

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Legislation

  • Constitution of KenyaArticle 159(2)(d) and (e); Article 159(d)
  • Civil Procedure ActSections 80, 1A, 1B, 3A
  • Civil Procedure Rules, 2010Order 45 Rules 1, 2, 3; Order 42 Rule 6(1) and (2); Order 42 Rule 8; Order 50 Rule 5

Cases cited (3)

  • Pancras T Swai v Kenya Breweries Ltd
    [2014] eKLR
  • Equity Bank v West Link MBO Limited
    Civil Application No. 78 of 2011, 2013 eKLR
  • Shanzu Investments Limited v. Commissioner for Lands
    Civil Appeal No. 100 of 1993
Jurisdiction invoked
Article 159(2)(d) and (e) of the Constitution, Sections 80, 1A, 1B and 3A of the Civil Procedure Act and Order 45 Rules 1, 2 and 3 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, "In re estate of Peter Muriungi Kaunga (Deceased) [2019] KEELC 2976 (KLR)", Case Analysis (2019). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/2976/eng@2019-06-19

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