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ELCDismissedNot stated in the extract· [2020] KEELC 3394 (KLR)

Eliud Michael Sichei v Tuti Holdings Limited Company [2020] KEELC 3394 (KLR)

Environment and Land Court (Appellate jurisdiction over the trial court's ruling on the Appellant's Notice of Motion)
20 February 2020
3,019 words in judgment
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The bottom line

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The Environment and Land Court dismissed a debtor's bid to block civil jail committal and stay execution, confirming notices to show cause are lawful in Kenya.

What this practically means

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Executive summary

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This ruling by Boaz N. Olao, J of the Environment and Land Court at Bungoma, dated 20th February 2020, determines the Appellant's Notice of Motion dated 29th October 2019 seeking (i) setting aside of a Notice to Show Cause and warrant of arrest of 16th October 2019 for his committal to civil jail, and (ii) stay of execution of the trial court's judgment of 3rd April 2019 ordering him to refund Kshs. 1,500,000/= being the purchase price for land under a sale agreement dated 30th September 2017. The Appellant argued that the committal process violated Articles 25, 28, 47(1) and 50(1) of the Constitution, Section 4 of the Fair Administrative Actions Act and the audi alteram partem rule, and that he would suffer substantial loss. The Respondent opposed, contending that no committal orders existed, no irreparable loss was shown, and no security was offered. The court held that committal to civil jail is a lawful mode of execution under sections 38, 40 and 42 of the Civil Procedure Act; a Notice to Show Cause gives the judgment-debtor an opportunity to be heard and does not violate constitutional rights. There was in fact no committal order of 16th October 2019 on the record. On stay, the Appellant demonstrated no substantial loss on a monetary decree against a company, delayed six months unreasonably, offered no security, and his appeal was not arguable since his own title deed contradicted his pleaded case. The Notice of Motion was dismissed with costs.

Key legal issues

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01

Whether a Notice to Show Cause in execution proceedings violates the judgment-debtor's constitutional rights

Holding

No. The notice gives the judgment-debtor an opportunity to show cause and does not amount to condemnation unheard; arrest in execution of a decree is lawful under sections 38, 40 and 42 of the Civil Procedure Act

Reasoning

The court held that execution by arrest and detention in prison is expressly permitted by the Civil Procedure Act. A Notice to Show Cause requires attendance and an opportunity to give reasons against committal; the trial court will apply legal and procedural safeguards. The Appellant's apprehension of committal was therefore speculative and no audi alteram partem violation arose.

p. 3
02

Whether the conditions for stay of execution pending appeal were satisfied

Holding

No: substantial loss was not demonstrated, the application was made six months after judgment (unreasonable delay), no security was offered, and the appeal was not arguable given the Appellant's own documents contradicted his case

Reasoning

The decree was monetary and the respondent a company capable of refunding the decretal sum if the appeal succeeded, so the appeal would not be rendered nugatory. The delay from 3rd April 2019 to 29th October 2019 was unreasonable. The Appellant offered no security, instead relying on an unproven claim that the Respondent holds 7 acres in trust.

p. 4
03

Whether there was an order of 16th October 2019 committing the Appellant to civil jail

Holding

No such order exists on the record; the trial court file shows the case was last mentioned on 24th July 2019

Reasoning

Both handwritten and typed proceedings showed the case was last mentioned on 24th July 2019 when the Appellant's earlier stay application was dismissed. If any proceedings took place on 16th October 2019, they were not availed to the court, so there was no committal order capable of being set aside.

p. 4

Legal principles established

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  • Committal of a judgment-debtor to civil jail is a recognised mode of execution under section 38 of the Civil Procedure Act, and a Notice to Show Cause is not itself a violation of constitutional rights since the judgment-debtor retains an opportunity to be heard
  • The three conditions for stay of execution under Order 42 Rule 6(2) are substantial loss, application without unreasonable delay, and security for due performance of the decree
  • Substantial loss is the cornerstone of an application for stay; without evidence of substantial loss it is difficult to see why the respondent should be kept out of their money
  • Ordinarily a successful party is entitled to the fruits of his judgment unless there are good reasons to put that enjoyment on hold

Court orders

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  1. 1.The prayer to set aside the Notice to Show Cause dated 17th September 2019 is dismissed
  2. 2.The Appellant's Notice of Motion dated 29th October 2019 is dismissed
  3. 3.The application is dismissed with costs to the Respondent

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 1B, 3A, 63(e), 38, 40, 42
  • Civil Procedure RulesOrders 22 Rule 34, 42 Rule 6(1) and (2), 49 Rule 2, 51 Rule 1
  • Constitution of Kenya, 2010Articles 25, 28, 29(a), 47(1), 50(1)
  • Fair Administrative Actions ActSection 4

Cases cited (4)

  • KENYA SHELL LTD v KIBIRU
    1986 KLR 410
  • SILVERSTEIN v CHESONI
    2002 1 KLR 867
  • MUKUMA v ABUOGA
    1988 KLR 645
  • BUTT v RENT RESTRICTION TRIBUNAL
    C.A Civil Appeal No 6 of 1979
On appeal from
Senior Principal Magistrate's Court at Sirisia
Not stated
Jurisdiction invoked
Sections 1A, 1B, 3A, 63(e) and 38 of the Civil Procedure Act and Orders 22 Rule 34, 49 Rule 2, 42 Rule 6 and 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, "Eliud Michael Sichei v Tuti Holdings Limited Company [2020] KEELC 3394 (KLR)", Case Analysis (2020). Not stated in the extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/3394/eng@2020-02-20

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