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ELCAllowedNot stated in the ruling (interlocutory application dated March 24, 2022)· [2023] KEELC 460 (KLR)

Nyanza Enterprises Limited v Orina & 2 others (Environment & Land Case 825 of 2015) [2023] KEELC 460 (KLR)

Environment and Land Court
26 January 2023
1,454 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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A Kenyan land court paused enforcement of a judgment pending appeal, on condition the applicant deposits Kshs 500,000 as security within 30 days.

What this practically means

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Executive summary

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This ruling by the Environment and Land Court at Kisumu (E. Asati, J) determined a Notice of Motion dated March 24, 2022 by the 2nd Defendant/Applicant, brought under Order 42 Rule 6 of the Civil Procedure Rules and Sections 1A, 1B and 3A of the Civil Procedure Act, seeking stay of execution of the court's judgment of March 6, 2020 pending Court of Appeal Civil Appeal No 28 of 2022. The Respondent opposed, contending the application was misconceived, that no special circumstances were shown, that he is the registered owner of Kisumu Municipality/Block 6/461, and that no imminent execution was likely since the judgment required a boundary identification exercise through the County Surveyor. The court set out the twin conditions under Order 42 Rule 6(2): substantial loss, absence of unreasonable delay, and security for due performance. Relying on authorities including Shell Kenya Ltd, Rhoda Mukuma and Focin Motorcycle, the court found that execution - requiring the applicant to vacate and remove structures if the boundary determination went against him - would cause substantial loss and render the appeal nugatory. Noting the applicant had only undertaken not to sell or charge the property without proposing security, the court nonetheless allowed the application, granting stay conditional on the applicant depositing Kshs 500,000 in a joint interest-earning account in the joint names of both counsel within 30 days, failing which the stay would lapse. Costs of the application were awarded to the Respondent.

Key legal issues

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01

Substantial loss

Holding

Execution of the judgment, which required the applicant to vacate and remove structures if the boundary determination went against him, would cause substantial loss and render the appeal nugatory.

Reasoning

The court perused the judgment of March 6, 2020, which directed the County Land Registrar and Surveyor to convene a boundary identification meeting within 90 days, and directed the applicant to vacate and remove structures if found occupying the suit land. Given the nature of these orders, execution could remove the applicant from the land before the appeal was heard, making the appeal nugatory.

p. 3
02

Security for due performance

Holding

The applicant had not proposed security in the application apart from an undertaking not to sell or charge the property; the court nonetheless imposed its own security as a condition of stay.

Reasoning

Under Order 42 Rule 6(2), an applicant must give such security as the court orders for due performance of the decree. Citing Aron C Sharma and Focin Motorcycle, the court noted it is sufficient for an applicant to indicate readiness to provide security, the kind being at the court's discretion. The court fashioned its own condition of a Kshs 500,000 deposit.

p. 3

Legal principles established

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  • Substantial loss is assessed by the totality of the consequences an applicant is likely to suffer if forced to pay the decretal sum.
  • Where execution would render a proposed appeal nugatory, a stay may properly be granted.

Court orders

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  1. 1.Stay of execution of the judgment and decree granted on condition that the applicant deposits, within 30 days, Kshs 500,000 in a joint interest-earning account in a reputable financial institution in the joint names of counsel for the applicant and counsel for the Plaintiff/Respondent pending hearing and determination of the appeal
  2. 2.Failure to deposit the security as directed, the order of stay of execution will lapse
  3. 3.Costs of the application to the Respondent

Authorities

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Legislation

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

Cases cited (6)

  • Dr Daniel Chebutuk Rotich vs Morgan Kimaset Chebutuk Nakuru HCCC No 368 of 2001
  • Charles Wahome Gethi vs Angela Wairimu Gethi [2008] eKLR
    [2008] eKLR
  • Shell Kenya Ltd vs Benjamin Karuga Kibiru & Another [1986] eKLR 410
    [1986] eKLR 410
  • Rhoda Mukuma vs John Abuoga [1988] eKLR
    [1988] eKLR
  • Aron C Sharma vs Ashana Raikundalia t/a Raikundaria & Co Advocates & 2 others [2014] eKLR
    [2014] eKLR
  • Focin Motorcycle Co Ltd vs Ann Wambui Wangui & Another [2018] eKLR
    [2018] eKLR
Jurisdiction invoked
Order 42 Rule 6 of the Civil Procedure Rules; Sections 1A, 1B & 3A of the Civil Procedure Act Cap 21 Laws of Kenya

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, "Nyanza Enterprises Limited v Orina & 2 others (Environment & Land Case 825 of 2015) [2023] KEELC 460 (KLR)", Case Analysis (2023). Not stated in the ruling (interlocutory application dated March 24, 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/460/eng@2023-01-26

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