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ELCDismissedJudicial Review / Appeal arising from BPRT Cause No. 902 of 2016 (consolidated with BPRT No. 903 of 2016 and BPRT No. 901 of 2023)· [2024] KEELC 1182 (KLR)

Telposta Pension Scheme Registered Trustees & Another v Total Security Surveillance Limited & Others

Environment and Land Court
6 March 2024
2,214 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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This was a ruling by Mogeni J of the Environment and Land Court at Nairobi on the Appellant's Notice of Motion dated 25/01/2024, brought under Order 42 Rule 6(1) and Order 51 Rule 1 of the Civil Procedure Rules, 2010 and Sections 1A, 1B, 3A and 63(e) of the Civil Procedure Act. The Appellant, Telposta Pension Scheme Registered Trustees, sought a stay of the orders of the Chairman of the Business Premises Rent Tribunal issued on 19/12/2023 and of all further Tribunal proceedings in BPRT Cause No. 902 of 2016 (consolidated with BPRT Nos. 903 of 2016 and 901 of 2023) pending the hearing of its appeal. The Appellant asserted ownership and possession of LR No. 209/13238, leased to the 2nd and 3rd Respondents since 2013, and feared eviction following the Tribunal's lifting of an earlier stay of proceedings, pending judgment in Civil Appeal No. 293 of 2016 before the Court of Appeal. The 1st Respondent, Total Security Surveillance Limited, opposed, relying on a judgment in Nairobi ELC Suit No. 1400 of 2014 declaring it the lawful owner, which had not been overturned on appeal. Framing one issue - whether the Appellant had made a case for stay of execution - the court found the application filed without unreasonable delay (38 days), but held the Applicant failed to demonstrate substantial loss and offered no security, both mandatory conditions under Order 42 Rule 6(2). The plea to stay further Tribunal proceedings was also found res judicata. The application was dismissed with costs.

Key legal issues

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01

Whether the application for stay was filed without unreasonable delay

Holding

A delay of thirty-eight (38) days between the Tribunal's ruling of 19/12/2023 and the filing of the application was not inordinate

Reasoning

The court measured the interval between the Tribunal ruling delivered on 19/12/2023 and the application filed on 26/01/2024, holding that a period of about thirty-eight days cannot be said to have been inordinate. The delay limb of Order 42 Rule 6(2) was therefore satisfied.

p. 3
02

Whether the Applicant demonstrated substantial loss

Holding

The Applicant failed to demonstrate the substantial loss that would result if stay was denied

Reasoning

Relying on Machira T/A Machira & Co. Advocates vs East Africa Standard, the court held substantial loss is a factual issue that must be raised in the supporting affidavit and supported by evidence. As the 1st Respondent's ownership judgment in Nairobi ELC Suit No. 1400 of 2014 had not been overturned, the Applicant failed to discharge its burden of proving substantial loss.

p. 4
03

Whether the Applicant furnished security for the due performance of the decree

Holding

The Applicant offered no security, a mandatory condition, and the application therefore failed

Reasoning

Citing Aron C. Sharma vs Ashana Raikundalia and Equity Bank Ltd vs Taiga Adams Company Ltd, the court held that offering security is a mandatory tenet; not one or some but all conditions must be met. The Applicant offered no security or undertaking to pay if ordered, so the third mandatory condition was unfulfilled.

p. 5
04

Whether the Court could stay further proceedings of the Tribunal

Holding

The request for stay of further Tribunal proceedings was res judicata, having been heard and finally determined by the Tribunal itself

Reasoning

The court found that the issue of stay of proceedings had been adjudicated upon by the Tribunal and later reviewed/set aside by its ruling of 19/12/2023, which is the subject of the appeal. The Court could not entertain the same issue afresh, deeming it res judicata.

p. 5

Legal principles established

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  • Three mandatory conditions must be satisfied before stay pending appeal is granted: substantial loss, no unreasonable delay, and security
  • Substantial loss must be specifically and in detail raised and supported by evidence, not merely asserted
  • The burden of proving substantial loss lies on the applicant for stay

Court orders

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  1. 1.The Notice of Motion dated 25/01/2024 is dismissed with costs
  2. 2.Costs awarded to the 1st Respondent

Authorities

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Legislation

  • Civil Procedure Rules, 2010Order 42 Rule 6(1), Rule 6(2)
  • Civil Procedure Rules, 2010Order 51 Rule 1
  • Civil Procedure ActSections 1A, 1B, 3A & 63(e)

Cases cited (5)

  • Butt vs Rent Restriction Tribunal
    Civil App No. NAI 6 of 1979
  • Machira T/A Machira & Co. Advocates vs East Africa Standard
    [2002] eKLR
  • Aron C. Sharma vs Ashana Raikundalia T/A Rairundalia & Co. Advocates
  • Equity Bank Ltd vs Taiga Adams Company Ltd
    [2006] eKLR
  • Carter & Sons Ltd vs Deposit Protection Fund Board & 3 Others
On appeal from
Business Premises Rent Tribunal (Chairman)
BPRT Cause No. 902 of 2016 (consolidated with BPRT No. 903 of 2016 and BPRT No. 901 of 2023)
Jurisdiction invoked
Order 42 Rule 6(1) & Order 51 Rule 1 of the Civil Procedure Rules, 2010; Sections 1A, 1B, 3A & 63(e) 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, "Telposta Pension Scheme Registered Trustees & Another v Total Security Surveillance Limited & Others", Case Analysis (2024). Judicial Review / Appeal arising from BPRT Cause No. 902 of 2016 (consolidated with BPRT No. 903 of 2016 and BPRT No. 901 of 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/1182/eng@2024-03-06

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