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ELCPartially AllowedJudgment/Decree in ELC Case No. 10 of 2019, Mavoko (stay pending appeal application)· [2022] KEELC 665 (KLR)

Kilonzi Muthami t/a Qara Borehole Services v Musembi Mutisya [2022] KEELC 665 (KLR)

High Court of Kenya
23 March 2022
1,782 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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The High Court paused enforcement of a Kshs. 1.3 million judgment against a borehole contractor, but only if he deposits the money in a joint interest-earning account within 30 days.

What this practically means

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Executive summary

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This was a ruling on a Notice of Motion by Kilonzo Muthami t/a Qara Borehole Services, the Appellant, seeking stay of execution of the judgment and decree in Mavoko ELC Case No. 10 of 2019 (Musembi Mutisya v Kilonzo Muthami), in which the trial court ordered him to refund the Respondent Kshs. 1,300,000/= for breach of a borehole drilling contract. The Appellant argued his appeal was arguable - the trial Magistrate omitted crucial evidence, ordered refund of the entire contract sum despite partial execution, and failed to consider two hydrological reports - and that his business faced collapse owing to Covid-19. The Respondent opposed, contending the Order 42 Rule 6 threshold was unmet and proposing conditional terms. The Court framed a single issue: whether the Applicant met the threshold for stay of execution pending appeal. Applying Order 42 Rule 6(2) and the Court of Appeal's decision in Vishram Ravji Halai v Thornton & Turpin, the Court held the appeal raised arguable grounds, the application was timely (filed 20 days after judgment), and substantial loss was demonstrated. However, because the Applicant had received and retained the full contract sum, the ends of justice required the stay to be conditional. The Court granted stay of execution pending appeal on condition that the Applicant deposit the decretal sum of Kshs. 1,300,000/= in an interest-earning joint account in the names of the parties' advocates within 30 days, with costs to abide the appeal.

Key legal issues

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01

Whether the Applicant met the threshold for stay of execution pending appeal under Order 42 Rule 6(2)

Holding

The Court found the appeal raises arguable grounds and that the Applicant would suffer substantial financial loss, but granted the stay only on condition that the entire decretal sum be deposited in an interest-earning joint account within 30 days

Reasoning

The Court applied the three cumulative conditions in Order 42 Rule 6(2): substantial loss, absence of unreasonable delay, and security. The application was filed 20 days after judgment (prompt), the appeal raised arguable grounds concerning the trial Magistrate's omission of evidence and refund of the full contract sum despite partial execution, and the Applicant's business faced collapse. However, since the Applicant held the Respondent's Kshs. 1,300,000/=, conditional stay was appropriate.

p. 3

Legal principles established

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  • An applicant for stay of execution pending appeal must establish substantial loss, that the application was made without unreasonable delay, and furnish security for due performance of the decree
  • Where the applicant received the decretal sum from the respondent, a stay granted ought to be conditional on provision of security

Court orders

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  1. 1.Stay of execution of Judgment in Mavoko ELC No. 10 of 2019 granted pending Appeal on condition that the Applicant deposits the decretal sum of Kshs. 1,300,000/= in an interest earning joint account in the names of the parties' advocates on record within 30 days of the Ruling
  2. 2.Costs shall abide the Appeal

Authorities

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Legislation

  • Civil Procedure RulesOrder 42 Rule 6

Cases cited (12)

  • Obadiah Mugambi v Joyce Ncoro
    [2021] eKLR
  • Litayason Neepe & 2 Others vs. Elizabeth Guttman & Another
    Civil Application No. NAI 324 of 2018
  • Silversten v Chesoni
    [2002] eKLR 867
  • Congress Rental South Africa v Kenyatta International Convention Centre and Cooperative Bank of Kenya Limited and Another (Garnishee)
    [2019] eKLR
  • R.W.W v E.K.W
    [2019] eKLR
  • James Wangalwa & Another v Agnes Naliaka Cheseto
    [2012] eKLR
  • Caneland Ltd & 2 Others v Delphis Bank Ltd
    Civil Application No. NAI 344 of 1999
  • Stephen Wanjohi v Central Glass Industries Ltd
    Nai HCCC No. 6726 of 1991
  • Absalom Dova v Tarbo Transportes
    [2013] eKLR
  • Mwaura Karuga T/A Limit Enterprises v Kenya Bus Services Limited & 4 Others
    [2015] eKLR
  • Gianfranco Manenthi & Another v Africa Merchant Assurance Company Ltd
    [2019] eKLR
  • Vishram Ravji Halai vs. Thornton & Turpin
    Civil Application No. Nai. 15 of 1990 [1990] KLR 365
On appeal from
Environment and Land Court (Mavoko)
ELC Case No. 10 of 2019 Musembi Mutisya v Kilonzo Muthami t/a Qara Borehole Services
Jurisdiction invoked
Order 42 Rule 6 of the Civil Procedure Rules (stay of execution 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, "Kilonzi Muthami t/a Qara Borehole Services v Musembi Mutisya [2022] KEELC 665 (KLR)", Case Analysis (2022). Judgment/Decree in ELC Case No. 10 of 2019, Mavoko (stay pending appeal application). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/665/eng@2022-03-23

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