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ELCDismissedEnvironment & Land Petition E003 of 2021· [2023] KEELC 21623 (KLR)

Matus & another v Intex Construction & another; National Environment Management Authority & 2 others (Interested Parties)

Environment and Land Court
15 November 2023
5,672 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~23 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court refused to pause a case dismissal, ruling that a 'negative order' cannot be stayed and 22 months of unexplained delay killed the request.

What this practically means

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Executive summary

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The Petitioners/Applicants, whose Further amended Petition concerning developments on L.R No. 7158/148 in Upper Spring Valley Estate was struck out with costs by judgment of 20th December 2021, moved the court by Notice of Motion dated 4th October 2023 seeking stay of execution - including of taxation of costs and any consequential execution - pending hearing of their appeal, Nairobi Court of Appeal Civil Appeal No. E439 of 2022. The Respondents and the 2nd Interested Party opposed, contending the bill of costs was untaxed, no substantial loss was demonstrated, and the application was mounted with inordinate delay. The court framed three issues: legality of staying a negative decree, proof of substantial loss, and promptitude/laches. On the first, applying Western College of Arts & Applied Sciences v Oranga and later Court of Appeal authority, it held that a decree striking out a suit is a negative order incapable of execution and thus incapable of being stayed; the application was also mounted against a non-existent judgment dated 21st December 2021. On the second, it found no evidence of substantial loss in the supporting affidavit, holding that execution and taxation are lawful processes that do not per se constitute substantial loss. On the third, it held the 22-month unexplained delay attracted the doctrine of laches. The application was dismissed with costs to the Respondents and the 2nd Interested Party, to be taxed by the Deputy Registrar.

Key legal issues

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01

Whether stay of execution can issue in respect of a negative decree

Holding

No. The court's judgment struck out the petition and did not direct any party to do or abstain from doing anything; such a negative order cannot be stayed, and the stay application was mounted in vacuum.

Reasoning

Relying on Western College of Arts & Applied Sciences v Oranga and subsequent Court of Appeal decisions, the court held that where a suit is dismissed or struck out with costs, the only executable element is costs, and a negative decree is not amenable to stay. The application was therefore legally untenable, and was also mounted against a non-existent judgment dated 21st December 2021.

02

Whether the Applicants demonstrated substantial loss

Holding

No. The supporting affidavit contained no evidence of substantial loss beyond an averment that the Applicants would incur costs defending the taxation; execution being a lawful process does not itself amount to substantial loss.

Reasoning

Citing Kenya Shell Ltd v Benjamin Karuga Kibiru and James Wangalwa v Agnes Naliaka Cheseto, the court held that substantial loss is the cornerstone of stay jurisdiction and must be proved by explicit, credible evidence deponed in an affidavit, not inferred or supplied through submissions. The Applicants' submissions were 'mounted on quick-sand' and devoid of probative value.

p. 9
03

Whether the application was defeated by delay and laches

Holding

Yes. The application was filed over 22 months after the decree with no explanation for the delay, and equity does not aid the indolent.

Reasoning

The decree was rendered on 20th December 2021 but the application was not filed until 4th October 2023. The Applicants offered no reasons for the delay, from which the court inferred deliberate inaction. Citing Chief Land Registrar v Nathan Tirop, the court held that laches, an equitable defence grounded in public policy against stale claims, negated the application.

p. 11

Legal principles established

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  • A negative decree, such as an order striking out or dismissing a suit, is incapable of execution and cannot attract an order of stay of execution pending appeal
  • Substantial loss must be proved by explicit evidence in the supporting affidavit; the mere fact that execution or taxation is put in motion does not amount to substantial loss
  • An application for equitable relief mounted with inordinate and unexplained delay is defeated by the doctrine of laches

Court orders

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  1. 1.The Application dated the 4th October 2023 be and is hereby dismissed with costs to the Respondents and the 2nd Interested Party
  2. 2.The costs shall be taxed by the Deputy Registrar of the Honourable court

Authorities

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Legislation

  • Civil Procedure Rules, 2010Order 42 Rule 6(2)
  • Civil Procedure Rules, 2010Order XLI rule 4 (as cited in Kenya Shell Ltd)
  • Advocates Remuneration Order, 2014scale fees on instruction fees

Cases cited (21)

  • KSC International Ltd (under receivership) & 3 Others v Gichuki King'ara & Co Advocates
    (2019)eKLR

    Stay of execution pending appeal - cited by Applicants

  • Nairobi City Council v Tom Ojienda & Associates
    (Civil Appeal Application) E080 of 2022 (2022) KECA 1326 (KLR)

    Stay/taxation of costs - cited by Applicants

  • Karuturi Networks Ltd & Another v Dally & Figgis Advocates
    (2009)eKLR

    Stay of execution - cited by Applicants

  • African Safari Club Ltd v Safe Rentals Ltd
    (2021)eKLR

    Stay of execution - cited by Applicants

  • Doris Awion Abira v M. I Wafula & Co Advocates
    (2021)eKLR

    Taxation process cannot occasion substantial loss - cited by Respondents

  • Deposit Protection Fund v Rosaline Njeri Macharia
    (2006)eKLR

    Taxation does not occasion substantial loss - cited by Respondents and 2nd Interested Party

  • Pius Musimba Mwasia & 15 Others v Onesmus Ndolo Ng'eta & 3 Others
    (2022)eKLR

    Taxation not substantial loss - cited by Respondents

  • James Wangalwa & Another v Agnes Naliaka Cheseto
    Misc Application No 42 of 2011 [2012] eKLR

    Execution is a lawful process and does not by itself amount to substantial loss - adopted by the court

  • Kenya Shell Ltd v Benjamin Karuga Kibiru & Another
    (1986)eKLR

    Substantial loss is the cornerstone for granting stay; must be evidenced

  • RWW v EKW
    (2019)eKLR

    Evidence of substantial loss required - cited by 2nd Interested Party

  • Joshua Ng'atu v Jane Impinda & 3 Others
    (2019)eKLR

    Inordinate delay defeats application - cited by 2nd Interested Party

  • Western College of Arts & Applied Technology v Oranga
    (1976)eKLR; [1976] KLR 63

    A negative order/dismissal with costs cannot be stayed

  • Charles Barongo Nyakeri v The County Government of Kisii
    (2020)eKLR

    Dismissal yields a negative decree not amenable to stay

  • Registered Trustees, Kenya Railways Staff Retirement Benefits Scheme v Millimo, Muthomi & Co. Advocates & 2 others
    (Civil Appeal (Application) E383 of 2021) [2022] KECA 491 (KLR)

    Negative orders cannot be stayed

  • Kenya Commercial Bank Limited v Tamarind Meadows Limited & 7 Others
    [2016] eKLR

    Expounded stay of negative orders

  • Kanwal Sarjit Singh Dhiman v Keshavji Juvraj Shah
    [2008] eKLR

    Dismissal with costs is a negative order incapable of execution save as to costs

  • Dakianga Distributors Ltd v Kenya Seed Company Ltd
    (2015)eKLR

    Parties are bound by their pleadings

  • Chief Land Registrar & Another v Nathan Tirop & Others
    (2018)eKLR

    Definition and effect of the doctrine of laches

  • Silverstein v Chesoni
    [2002] 1 KLR 867

    Meaning of substantial loss - quoted within Wangalwa

  • Mukuma v Abuoga

    Meaning of substantial loss - quoted within Wangalwa

  • Wilson v Church

    Distinguished in Western College - payment ordered versus dismissal

Jurisdiction invoked
Inherent jurisdiction and Order 42 Rule 6(2) of the Civil Procedure Rules, 2010, on an application for 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, "Matus & another v Intex Construction & another; National Environment Management Authority & 2 others (Interested Parties)", Case Analysis (2023). Environment & Land Petition E003 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/21623/eng@2023-11-15

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