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ELCDismissedNakuru CMCC No. 214 of 2018 (appeal); Notice of Motion dated 26th October 2020· [2021] KEELC 4606 (KLR)

Anthony Mwaura v Anton Levitan [2021] KEELC 4606 (KLR)

High Court of Kenya
28 January 2021
2,543 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The High Court in Nakuru refused to remove a condition requiring an appellant to deposit Kshs 1,764,000 before staying execution of a judgment.

What this practically means

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Executive summary

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The appellant, dissatisfied with the judgment of Hon. F. Munyi, Principal Magistrate, delivered on 10th June 2020 in Nakuru CMCC No. 214 of 2018, appealed and sought stay of execution before the trial court. On 22nd September 2020 the trial court granted a conditional stay requiring the appellant to deposit Kshs.1,764,000/= (quantified mesne profits) in court within 30 days, failing which the respondent could execute. The appellant did not comply and instead filed a Notice of Motion dated 26th October 2020 before the High Court seeking an unconditional stay of the judgment, decree and the stay ruling, contending the deposit condition was onerous, punitive and amounted to a denial of stay, and that execution would render his appeal nugatory through eviction. The respondent opposed, arguing the applicant failed to demonstrate substantial loss, an arguable appeal, security, and promptness. The court, applying Order 42 Rule 6 and the principles in Superior Homes and Antoine Ndiaye, held that the trial magistrate had properly exercised her discretion in granting a conditional stay; the deposit was legitimate security for due performance of the decree, refundable if the appeal succeeded. Lacking the judgment and record of appeal, the court found no basis to fault the conditional order. However, to preserve the possibility of the status quo, the court extended the time to deposit the security by 21 days, failing which the application would stand dismissed with costs and the respondent at liberty to execute; if the deposit was made, costs of both applications would abide the appeal.

Key legal issues

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01

Conditions for stay of execution pending appeal under Order 42 Rule 6

Holding

The applicant must demonstrate substantial loss, bring the application without unreasonable delay, and provide security; the discretion is judicial and governed by defined principles

Reasoning

The court adopted the established principles from Superior Homes and Antoine Ndiaye, restating that stay is discretionary but must be exercised judiciously upon the three prerequisites in Order 42 Rule 6(2): no undue delay, substantial loss, and security for due performance of the decree.

p. 2
02

Whether the trial court's conditional stay was onerous and should be set aside

Holding

The conditional stay was proper; the deposit of the quantified mesne profits acted as security for due performance of the decree, refundable if the appeal succeeds

Reasoning

The trial magistrate had decreed the suit property to the respondent, found the applicant in unlawful possession, and quantified mesne profits. Depositing Kshs.1,764,000/= in court secured the respondent's decree if the appeal failed while protecting the applicant if it succeeded. Justice cuts both ways.

p. 3
03

Whether the application was brought without unreasonable delay

Holding

The application made after expiry of the 30-day compliance period was not shown to be without unreasonable delay

Reasoning

The stay ruling was delivered on 22nd September 2020 with 30 days to comply. The applicant waited until the compliance period expired before filing the application on 28th October 2020, and the court found no satisfactory explanation for the delay.

p. 3

Legal principles established

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  • An appellate court will not interfere with a subordinate court's exercise of discretion on stay unless it is shown the trial court was wrong or applied wrong principles
  • A conditional stay requiring a deposit as security is a proper exercise of discretion where the trial court has decreed possession and quantified mesne profits

Court orders

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  1. 1.The application for stay of execution pending appeal is found to lack merit
  2. 2.The period within which the applicant is to deposit Kshs.1,764,000/= as security is extended by a further twenty-one (21) days from 28th January 2021
  3. 3.Failing compliance within 21 days, the application for stay before the court will stand dismissed with costs and the respondent will be at liberty to execute the decree
  4. 4.If the security deposit is placed, the costs of the application before the lower court and before this court will abide the outcome of the appeal

Authorities

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Legislation

  • Civil Procedure RulesOrder 42 Rule 6(1) & (2); Order 42 Rule 6(a); Order 42 Rule 22
  • Civil Procedure ActSections 1A, 1B and 3A

Cases cited (8)

  • P J Dave Flowers Ltd -vs- David Simiyu Wamalwa
    (2018) eKLR
  • Superior Homes (Kenya) Ltd -vs- Musango Kithome
    (2018) eKLR
  • Equity Bank Ltd -vs- Taiga Adams Co. Ltd
    (2006) eKLR
  • Kiplagat Kotut -vs- Rose Jebor Kipngok
    (2015) eKLR
  • Macharia t/d Macharia & Co. Advocates -vs- East African Standard (No.2)
    (2002) eKLR
  • Antonice Ndiaye -vs- African Virtual University
    (2015) eKLR
  • Prilscot Company Ltd -vs- Monica Heho
    (2015) eKLR
  • Halai & Another -vs- Thorton Turpin (1963) Ltd
    (1990) KLR 365
On appeal from
Principal Magistrate's Court, Nakuru
Nakuru CMCC No. 214 of 2018
Jurisdiction invoked
Order 42 Rule 6(a) and Rule 22 of the Civil Procedure Rules and 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, "Anthony Mwaura v Anton Levitan [2021] KEELC 4606 (KLR)", Case Analysis (2021). Nakuru CMCC No. 214 of 2018 (appeal); Notice of Motion dated 26th October 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/4606/eng@2021-01-28

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