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ELCDismissedEnvironment & Land Case 150 of 2017· [2023] KEELC 18647 (KLR)

Odongo v Wanyama & 3 others

Environment and Land Court
13 July 2023
1,931 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Busia Environment and Land Court refused to pause a Kshs 1,008,000 refund judgment because the applicant waited eight months and showed no real loss.

What this practically means

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Executive summary

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This ruling by the Environment and Land Court at Busia (Olao J) determined the 2nd defendant Domitila Maero's Notice of Motion dated March 14, 2023 seeking stay of execution of the judgment of July 7, 2022, by which Omollo J had found the 1st defendant in breach of a land sale agreement and ordered the 1st and 2nd defendants to refund the plaintiff Kshs 1,008,000 (purchase price plus survey fees) with interest at court rates, in a 60:40 ratio, plus costs. The 2nd defendant, who had lodged a Notice of Appeal and filed Civil Appeal No E41 of 2023 in the Court of Appeal at Kisumu, sought stay under Order 42 Rule 6 of the Civil Procedure Rules. The application was unopposed, the plaintiff and his counsel absent and no response filed, but the court held it was still obliged to consider the merits. Applying Order 42 Rule 6(1) and (2) and the authorities of Kenya Shell Ltd v Kibiru and Vishram Ravji Halai v Thornton & Turpin, the court identified four conditions: sufficient cause, substantial loss, no unreasonable delay, and security. The 2nd defendant satisfied only two: filing the appeal showed sufficient cause, and her offer to comply with conditions was a sufficient offer of security. She failed on substantial loss, having made only a bare allegation, the plaintiff not being a man of straw since the decree was a refund of money he had paid for land he never received; and on delay, the application having been filed eight months after judgment without explanation. The court also held that arguability of the appeal was irrelevant to a stay sought from the court's own decision. The motion was dismissed with no orders as to costs.

Key legal issues

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01

Whether the 2nd defendant demonstrated substantial loss

Holding

She failed; a bare allegation that she would 'greatly suffer' was insufficient, and the plaintiff, who paid money for land he never received, could not refund it if the appeal succeeded

Reasoning

The court found the deposed ground of substantial loss was a bare allegation without demonstration of what loss would ensue. The decree was a refund of money the defendants received for an aborted land sale, and the plaintiff was not shown to be impecunious or a man of straw, so repayment upon success of the appeal was possible.

p. 4
02

Whether the application was made without unreasonable delay

Holding

No; the application was filed eight months after judgment, an unexplained and unreasonable delay

Reasoning

Judgment was delivered on July 7, 2022 in open court in the presence of the 2nd defendant's then counsel, so she knew of it from that date. The application was filed on March 14, 2023, some eight months later, and the delay was neither explained nor reasonable, disqualifying her from the order sought.

p. 4
03

Whether sufficient cause and security were shown

Holding

Yes; filing the Notice of Appeal and appeal showed sufficient cause, and the offer to comply with conditions amounted to a sufficient offer of security

Reasoning

Having lodged a Notice of Appeal and filed the appeal itself, the 2nd defendant showed sufficient cause. Her averment of willingness to comply with whatever conditions the court imposed was treated as a mark of good faith and a sufficient offer of security, with the court retaining the duty to determine the nature and extent of security.

p. 4

Legal principles established

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  • An unopposed application must still be considered on its merits against the legal threshold upon which it is founded
  • Substantial loss is the cornerstone of jurisdiction for granting a stay of execution
  • Arguability or prospects of success of an appeal is not a consideration in an application for stay pending appeal from the court's own decision

Court orders

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  1. 1.The Notice of Motion dated March 14, 2023 is dismissed with no orders as to costs

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 65
  • Civil Procedure RulesOrder 42 Rule 6(1) and (2)
  • Court of Appeal Rules 2010Rules 1(3), 47

Cases cited (3)

  • Kenya Shell Ltd v Benjamin Karuga Kibiru & Another
    1986 KLR 410

    Substantial loss is the cornerstone of jurisdiction for granting a stay

  • Vishram Ravji Halai & Another v Thornton & Turpin (1963) Ltd
    1990 KLR 365

    Three conditions fettering the discretion to grant stay: sufficient cause, substantial loss and security, without unreasonable delay

  • HGE –V- S M
    2020 eKLR

    Distinguished as concerning stay of a subordinate court's judgment pending appeal, not applicable here

Jurisdiction invoked
Order 42 Rule 6 of the Civil Procedure Rules; Sections 1A and 65 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, "Odongo v Wanyama & 3 others", Case Analysis (2023). Environment & Land Case 150 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/18647/eng@2023-07-13

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