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ELCDismissedNot stated in the judgment (suit commenced by plaint filed in 1999; application dated 7 March 2020)· [2020] KEELC 1501 (KLR)

Kutima Investments Limited v Muthoni Kihara & another [2020] KEELC 1501 (KLR)

Environment and Land Court
30 July 2020
3,535 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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The Environment and Land Court in Mombasa dismissed a bid to pause a 21-year-old land and mining case because the appeal notice was filed late and no real loss was shown.

What this practically means

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Executive summary

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The 1st defendant (applicant) moved the Environment and Land Court at Mombasa by an application dated 7 March 2020 seeking a stay of proceedings pending an intended appeal against the directions of 27 January 2020, by which the court directed that the plaintiff's application for withdrawal of suit dated 23 January 2020 be heard in priority to the applicant's application dated 14 October 2019 for leave to amend defence and file a counterclaim. The underlying suit, filed in 1999, concerns land LR 12199/4 in Taita Taveta, alleged illegal mining, and a challenge to the 2nd defendant's power to grant mining licences without the plaintiff's consent; the suit was struck out in 2005, reinstated by the Court of Appeal in 2015, and transferred to this Court. The court dismissed the application on three grounds. First, the Notice of Appeal was filed on 12 February 2020, outside the 14 days prescribed by Rule 75(2) of the Court of Appeal Rules, so no competent appeal existed to anchor a stay. Secondly, the supporting affidavit was sworn by Godfrey Kihara Kamau, a stranger to the proceedings who wrongly described himself as a director of the applicant, the 1st defendant being an individual; without disclosure of his capacity the affidavit was incompetent. Thirdly, on the merits, the court held that the Order 42 Rule 6(2) principles apply mutatis mutandis to stay of proceedings as to stay of execution, and that no substantial loss was demonstrated. The application was dismissed with costs.

Key legal issues

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01

Competency of the intended appeal as a foundation for stay

Holding

The Notice of Appeal filed on 12 February 2020 against the directions of 27 January 2020 was out of the 14 days prescribed by Rule 75(2) of the Court of Appeal Rules, so the applicant could not demonstrate a competent appeal capable of anchoring a stay of proceedings

Reasoning

Rule 75(2) requires a Notice of Appeal to be lodged within fourteen days of the decision appealed from. The decision was made on 27 January 2020, so the notice was due by 10 February 2020. Filing on 12 February 2020 was out of time, and without a competent appeal there is nothing to stay proceedings in aid of.

p. 2
02

Competency of the supporting affidavit sworn by a stranger

Holding

The supporting affidavit sworn by Godfrey Kihara Kamau, who claimed to be a director of the applicant when the 1st defendant is an individual (Muthoni Kihara), was incompetent and could not support the application

Reasoning

The 1st defendant is an individual, not a corporate body, so the deponent could not be a director of the applicant. He gave no explanation of his capacity or proximity to the case, and no rights or obligations were sought against him. Without such disclosure the affidavit is incompetent and the application, being improperly supported, must fail.

p. 2
03

Whether the same principles govern stay of execution and stay of proceedings

Holding

Order 42 Rule 6 applies to both stay of execution and stay of proceedings, and the principles in Rule 6(2) apply mutatis mutandis to an application for stay of proceedings; Rule 5(2)(b) of the Court of Appeal Rules does not apply to this court

Reasoning

Rule 6(1) explicitly mentions both stay of execution and stay of proceedings. Although Rule 6(2) refers only to stay of execution, its principles — no inordinate delay, substantial loss, and security — apply equally to stay of proceedings. Rule 5(2)(b) of the Court of Appeal Rules is confined to the Court of Appeal itself, and Section 3A of the Civil Procedure Act is only a residual general power, with Order 42 Rule 6(2) being the first port of call.

p. 3
04

Whether substantial loss was demonstrated

Holding

No substantial loss was demonstrated; the applicant could not show what loss she would suffer if the application for withdrawal of suit were heard first, since that application has not yet been determined and any appeal could still be pursued in the Court of Appeal

Reasoning

The appeal targets a purely procedural direction prioritising the withdrawal application. The withdrawal application has not been considered, so its outcome is unknown, and even if it succeeds the applicant can, subject to leave, pursue all substantive issues in the Court of Appeal. Without demonstration of substantial loss the application fails even on its merits.

p. 4

Legal principles established

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  • The principles in Order 42 Rule 6(2) of the Civil Procedure Rules apply, mutatis mutandis, to applications for stay of proceedings as well as stay of execution
  • Rule 5(2)(b) of the Court of Appeal Rules applies strictly to the Court of Appeal and cannot be used by the superior court to determine a stay application filed before it
  • A stay pending appeal cannot be granted where the Notice of Appeal was filed out of time and there is no competent appeal
  • An application for stay of proceedings must be supported by an affidavit of a party to the proceedings, or the capacity and proximity of the deponent must be disclosed and explained

Court orders

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  1. 1.The application dated 7 March 2020 seeking stay of proceedings pending appeal is dismissed
  2. 2.Costs of the application to the plaintiff

Authorities

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Legislation

  • Civil Procedure Act, Cap 21, Laws of KenyaSection 3A
  • Civil Procedure RulesOrder 25 Rule 1
  • Civil Procedure RulesOrder 42 Rule 6(1) and (2)
  • Court of Appeal Rules, 2010Rule 2
  • Court of Appeal Rules, 2010Rule 5(1) and (2)(a) and (b)
  • Court of Appeal Rules, 2010Rule 75(1) and (2)
  • Constitution of Kenya, 2010Creation of the Environment and Land Court (as referenced)

Cases cited (3)

  • Judicial Commission of Inquiry into the Goldenberg Affairs & 3 Others vs Kilach
    (2003) KLR 249
  • Hashmukhlal Virchand Shah & 2 Others vs Investment & Mortgages Bank Limited
    (2014) eKLR
  • Mrao vs First American Bank of Kenya Limited & 2 Others
    (2003) KLR 125
Jurisdiction invoked
Inherent jurisdiction under Section 3A of the Civil Procedure Act, Cap 21, and Order 42 Rule 6 of the Civil Procedure Rules (application for stay of proceedings pending appeal)

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, "Kutima Investments Limited v Muthoni Kihara & another [2020] KEELC 1501 (KLR)", Case Analysis (2020). Not stated in the judgment (suit commenced by plaint filed in 1999; application dated 7 March 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/1501/eng@2020-07-30

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