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ELCDismissedEnvironment & Land Case 41 of 2012 & E11 of 2020 (Consolidated)· [2023] KEELC 18355 (KLR)

Kango Enterprises Limited & another v Unsworth (Sued as the administrator the Estate of John Fraser Unsworth) & 7 others

Environment and Land Court
21 June 2023
2,967 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court refused to pause a land judgment because the losing party offered no real proof of loss and the property had already been transferred.

What this practically means

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Executive summary

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This ruling by the Environment and Land Court at Malindi (M.A. Odeny, J) determined a Notice of Motion dated 29th August 2022 by the 1st Defendant, Gail Unsworth, seeking stay of the judgment delivered on 5th August 2022 and its decree, plus an injunction restraining enforcement, pending her intended appeal. The suit concerned land parcel Chembe/Kibabamshe/327, in consolidated proceedings (ELC 41 of 2012 and E11 of 2020). The application was opposed by the Plaintiff in E11 of 2020 and supported by submissions of the 5th Defendant. The court framed a single issue: whether the Applicant met the conditions for stay under Order 42 rule 6(1) and (2) of the Civil Procedure Rules, 2010 - substantial loss, absence of unreasonable delay, and security for due performance of the decree. The court found the application filed timeously (about a month after judgment). However, it held that the Applicant failed to establish substantial loss, her assertions about the 45-day vacatur period being insufficient being unsupported by empirical evidence; that arguability of the appeal is not synonymous with sufficient cause; and that the suit property, registered in her husband's name and adjudged to belong to the Plaintiff, could not serve as security. Further, the register had already been rectified in the Plaintiff's favour, so the application was overtaken by events and there was nothing to stay. The application was dismissed with costs to the Plaintiff.

Key legal issues

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01

Whether the application was filed without unreasonable delay

Holding

Filed without undue delay

Reasoning

Judgment was delivered on 5th August 2022 and the application filed on 7th September 2022. The court held that what amounts to unreasonable delay is determined case by case, there being no precise measure of inordinate delay, and found the filing timeous.

p. 4
02

Whether the Applicant demonstrated substantial loss

Holding

No substantial loss established

Reasoning

The Applicant argued the 45 days to vacate was insufficient to remove her belongings and improvements, risking homelessness. Relying on Charles Wahome Gethi and Samvir Trustee, the court held that mere residence and assertions are insufficient; empirical evidence of substantial loss was required and none was adduced.

03

Whether sufficient cause was shown

Holding

No sufficient cause shown

Reasoning

The Applicant argued the appeal was arguable, but per Judson Oriema Okoth, arguability is a matter for the Court of Appeal, not the trial judge on stay. The Applicant's real complaint was insufficient time to vacate, which she could have negotiated with the decree holder.

04

Whether adequate security was offered

Holding

Suit property cannot serve as security

Reasoning

The Applicant offered the suit property, registered in her husband's name, as security. The court held she cannot offer property the court has adjudged belongs to the Plaintiff, and per Arun C Sharma, security must guarantee due performance of the decree.

05

Whether the application was overtaken by events

Holding

Yes; nothing left to stay

Reasoning

The Plaintiff deponed that the register had already been rectified inserting the Plaintiff as registered proprietor, so the judgment had been effected and any stay orders would be in vain.

p. 6

Legal principles established

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  • Stay of execution under Order 42 rule 6 requires substantial loss, absence of unreasonable delay and security for due performance of the decree
  • Mere assertions of substantial loss are insufficient; empirical or documentary evidence is required
  • Arguability of an intended appeal is not synonymous with sufficient cause for stay
  • A party cannot offer as security property the court has adjudged to belong to the decree holder

Court orders

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  1. 1.The Notice of Motion dated 29th August 2022 seeking stay of execution and injunction pending appeal is dismissed
  2. 2.Costs of the application awarded to the Plaintiff

Authorities

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Legislation

  • Civil Procedure Rules, 2010Order 42 rule 6(1) and (2)
  • Civil Procedure Rules, 2010Order 21 [1]

Cases cited (23)

  • Commissioner of Customs v Ashok Doshi and 2 others
    [2007] eKLR

    Arguability of the intended appeal

  • Consolidated Marine v Nampijja and Another
    Nairobi Civil Appeal No. 93 of 1989

    Substantial loss

  • Mukuma v Abuoga
    [1988] KLR 645

    Substantial loss

  • Johnson Mwiruuti Mburu v Samuel Macharia Ngure
    HCCA 716 of 2003

    Financial ability of decree holder to pay decretal amount

  • National Industrial Credit Bank Ltd v Aquinas Francis Wasike and another
    [2006] eKLR

    Substantial loss/security

  • Michael Ntouthi Mitheu v Abraham Kivondo Musau
    [2021] eKLR

    Conditions under Order 42 rule 6

  • Nduhiu Gitahi v Warugongo
    [1988] KLR 621

    Rights of both parties pending appeal

  • Halai and another v Thornton and Turpin [1963] Ltd
    [1990] eKLR

    Three conditions for stay

  • Francis K. Chabari and another v Mwarania Gaichura Kairubi
    [2022] eKLR

    Arguability not a consideration in stay applications

  • Judson Oriema Okoth and another t/a Okoth and Kiplagat Advocates v National Housing Corporation
    [2006] eKLR

    Sufficient cause not synonymous with arguable appeal

  • Kenya Shell Limited v Benjamin Karuga Kibiru and another
    [1986] eKLR

    Substantial loss

  • James Munene Ndumbi v Sospeter Murimi Karitu
    [2015] eKLR

    Substantial loss

  • Samvir Trustee Limited v Guardian Bank Limited
    [2007] eKLR

    Substantial loss requires empirical or documentary evidence

  • James Wangalwa and Another v Agnes Naliaka Cheseto
    [2012] eKLR

    Consequences of execution not synonymous with substantial loss

  • Mwaura Karuga t/a Limit Enterprises v Kenya Bus Services Ltd and 4 others
    [2015] eKLR

    Security

  • Gianfranco Manenthi and another v Africa Merchant Assurance Company Ltd
    [2019] eKLR

    Security

  • Arun C Sharma v Ashana Raikundalia t/a Raikundalia and Co. Advocates and 2 others
    [2014] eKLR

    Purpose of security under Order 42 rule 6

  • Florence Cherugut v Cheptum Murei Annah
    [2022] eKLR

    Application overtaken by events

  • Leonard Roipa Pasha v Elijah Tende Ole Kula and 5 others
    [2018] eKLR

    Application overtaken by events

  • Tambayya Enterprises Limited and 14 others v National Land Commission and 2 others; EACC Interested Party
    [2022] eKLR

    Application overtaken by events

  • Utalii Transport Company Limited & 3 others v NIC Bank Limited & another
    [2014] eKLR

    No precise measure of inordinate delay

  • Butt v Rent Restriction Tribunal
    (1982) KLR 417

    Guidance on exercise of discretion in stay applications

  • Charles Wahome Gethi v Angela Wairimu Gethi
    [2008] eKLR

    Residence on suit land alone does not establish substantial loss

Jurisdiction invoked
Order 42 rule 6(1) and (2) of the Civil Procedure Rules, 2010

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, "Kango Enterprises Limited & another v Unsworth (Sued as the administrator the Estate of John Fraser Unsworth) & 7 others", Case Analysis (2023). Environment & Land Case 41 of 2012 & E11 of 2020 (Consolidated). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/18355/eng@2023-06-21

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