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ELCDismissedNot stated in the judgment (application dated 20th July 2020)· [2021] KEELC 3625 (KLR)

Harjot Singh Dhanjal v Attorney General & Kenya Railways Corporation (Petition 19 of 2019) [2021] KEELC 3625 (KLR)

Environment and Land Court
24 March 2021
2,178 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya Railways lost its bid to delay paying court costs because its appeal was filed too late and it showed no actual loss.

What this practically means

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Executive summary

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Kenya Railways Corporation (applicant) moved the court by notice of motion dated 20th July 2020 under Order 22 Rule 22 and Order 51 of the Civil Procedure Rules 2010 and section 39 of the Civil Procedure Act, seeking interim and temporary stay of execution of the court's ruling of 15th March 2020, which awarded costs of the petition to Harjot Singh Dhanjal (respondent), and a stay of taxation proceedings, pending an intended appeal to the Court of Appeal. The applicant asserted a likelihood of success on appeal, substantial loss, and delay attributable to email delivery of the judgment during the Covid-19 pandemic. The respondent countered that a successful litigant is entitled to the fruits of judgment, that costs follow the event, and that the applicant had failed to meet the Order 42 Rule 6(a) and (b) thresholds, relying inter alia on Carter & Sons Ltd and Butt v Rent Restriction Tribunal. The court framed two issues: entitlement to stay of execution pending appeal, and stay of taxation. It held Order 22 Rule 22 inapplicable as no decree had been extracted, leaving Order 42 Rule 6. The applicant failed to demonstrate substantial loss, merely alleging irreparable damage without particulars. Although there was no delay in filing the application after instructions, the notice of appeal was lodged three months after the ruling, outside Rules 74 and 75 of the Court of Appeal Rules and without leave, so no valid appeal existed; no memorandum of appeal was attached either. On stay of taxation, following Fulchand M. Shah, the court held it had no jurisdiction to stay proceedings before the taxing master and there was nothing yet to stay as costs were unascertained. The application was dismissed with costs on 24th March 2021.

Key legal issues

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01

Whether Order 22 Rule 22 was the correct basis for a stay of execution

Holding

Order 22 Rule 22 applies only where a decree has been sent for execution and was inapplicable as no decree had been extracted; Order 42 Rule 6 was the applicable provision

Reasoning

The court noted that Order 22 Rule 22 governs stay of execution of a decree by a court to which the decree has been sent for execution. Since no decree had been extracted in the matter, that provision did not apply, and the proper provision for stay pending appeal was Order 42 Rule 6, whose conditions of substantial loss, no unreasonable delay and security the applicant had to satisfy.

p. 2
02

Whether the applicant demonstrated substantial loss

Holding

No; the applicant merely alleged irreparable loss without describing the loss or its inability to recover costs if the appeal succeeded

Reasoning

Despite asserting irreparable loss and damage in its supporting affidavit, the applicant did not identify the loss it would suffer nor aver that costs paid would be irrecoverable should the appeal succeed. The respondent pointed out that the applicant had recourse to a reference to the High Court after taxation. The court therefore found the substantial-loss limb of Order 42 Rule 6(2)(a) unsatisfied.

p. 2
03

Whether there was a valid appeal to anchor the stay

Holding

No; the notice of appeal was filed three months after the ruling without leave, breaching Rules 74 and 75 of the Court of Appeal Rules, so there was no valid appeal

Reasoning

The ruling was delivered on 29th April 2020 but the notice of appeal was dated 20th July 2020 and filed on 27th July 2020, well outside the fourteen-day period in Rules 74 and 75 of the Court of Appeal Rules 2010. No extension of time was shown. Further, no draft or memorandum of appeal was attached, so the court could not assess the arguability of the intended appeal.

p. 3
04

Whether taxation proceedings could be stayed

Holding

No; the court has no jurisdiction to stay proceedings before the taxing master, and costs not yet ascertained mean there is nothing to stay

Reasoning

Following Fulchand M. Shah v Panachand J Shah, the court held that jurisdiction over costs is vested in the taxing master, with grievances taken to the High Court by reference. Since the costs payable had not been ascertained, no order capable of being stayed existed, and no irreparable loss was shown.

p. 3

Legal principles established

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  • A stay of execution under Order 42 Rule 6 requires substantial loss, absence of unreasonable delay and security; substantial loss must be demonstrated, not merely alleged
  • A notice of appeal filed outside the fourteen-day period prescribed by Rules 74 and 75 of the Court of Appeal Rules without leave results in there being no valid appeal
  • A court cannot stay taxation proceedings before the taxing master; disputes arising from taxation go to the High Court by way of reference

Court orders

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  1. 1.The application is dismissed with costs

Authorities

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Legislation

  • Civil Procedure Rules 2010Order 22 Rule 22
  • Civil Procedure Rules 2010Order 51
  • Civil Procedure Rules 2010Order 42 Rule 6(1), 6(2)(a) and (b)
  • Civil Procedure ActSection 39
  • Court of Appeal Rules, 2010Rules 74 and 75

Cases cited (9)

  • Carter & Sons Ltd v Deposit Protection Fund Board & 2 Others
    Civil Appeal No. 291 of 1997
  • Butt v Rent Restriction Tribunal
    [1982] KLR 417
  • James Wangalwa & Another v Agnes Naliaka Cheseto
    [2012] eKLR
  • Amal Hauliers Limited v Abdulnasir Abukar Hassan
    [2017] eKLR
  • Kenya Power & Lighting Company Limited v Esther Wanjiru Wokabi
    [2014] eKLR
  • Global Tours & Travels Limited
    Nairobi HC Winding Up Cause No. 43 of 2000
  • Re Global Tours & Travel Ltd
    HCWC No. 43 of 2000
  • Ezekiel Mule Musembi v H. Young & Company (E.A) Limited
    [2019] eKLR
  • Fulchand M. Shah v Panachand J Shah & 6 others
    [2010] eKLR
Jurisdiction invoked
Order 22 Rule 22 and Order 51 of the Civil Procedure Rules 2010 and section 39 of the Civil Procedure Act (application for stay pending appeal to the Court of 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, "Harjot Singh Dhanjal v Attorney General & Kenya Railways Corporation (Petition 19 of 2019) [2021] KEELC 3625 (KLR)", Case Analysis (2021). Not stated in the judgment (application dated 20th July 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/3625/eng@2021-03-24

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