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ELCDismissedNotice of Motion dated 6th February 2024 (arising from Appeal against BPRT Case No. E1016 of 2023)· [2024] KEELC 1507 (KLR)

Chege v Osidai Limited (Environment and Land Appeal E011 of 2024) [2024] KEELC 1507 (KLR)

Environment and Land Court
20 March 2024
6,742 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~27 min to read original · ~4 min brief

The bottom line

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The Environment and Land Court dismissed a landlord's bid to freeze a tribunal ruling, confirming you cannot 'stay' a dismissal order in Kenya.

What this practically means

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Executive summary

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The Applicant, the landlord and registered proprietor of the demised premises, moved the court by Notice of Motion dated 6th February 2024 under Order 42 rule 6(2) of the Civil Procedure Rules, 2010, seeking stay of execution of a ruling delivered on 30th January 2024 by Honorable Mike Makori, chairperson of the Business Premises Rent Tribunal in BPRT Case No. E1016 of 2023, and stay of the tribunal proceedings pending the hearing and determination of her appeal. The ruling had dismissed her preliminary objection, discharged ex-parte orders of 19th October 2023 (by which she had recovered possession), and dismissed her application for stay before the Tribunal. She contended she had filed the application timeously, would suffer substantial loss because the premises had been leased to a third party, and was ready to deposit rent of Kes.300,000 into an escrow account. The Respondent opposed, arguing the appeal against the dismissal of the preliminary objection was incompetent for want of leave, that the orders impugned were negative orders incapable of execution, and that no substantial loss or grounds for stay of proceedings were demonstrated. The court framed four issues and resolved all against the Applicant. First, the limb of the appeal challenging the dismissal of the preliminary objection required leave under Section 75 of the Civil Procedure Act and Order 43 Rule 1, which was never obtained, negating sufficient cause. Second, the impugned orders were negative (dismissal) orders incapable of execution. Third, no substantial loss was shown, the Respondent's dispossession having flowed from an illegally obtained ex-parte order since vacated. Fourth, stay of proceedings is a grave order granted sparingly and was unsupported by cogent evidence. The application was dismissed with costs to the Respondent.

Key legal issues

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01

Competence of the appeal for want of leave

Holding

A segment of the appeal (the limb challenging dismissal of the preliminary objection) required leave under Section 75 of the Civil Procedure Act and Order 43 Rule 1 of the Civil Procedure Rules, which was never sought or obtained, negating sufficient cause

Reasoning

The Tribunal's ruling dismissed a preliminary objection among other matters. Where a preliminary issue alleging lack of jurisdiction fails, no appeal lies as of right; the unsuccessful party must obtain leave at delivery of the ruling or within 14 days. The Applicant did not seek or obtain leave, so that limb of the appeal is incompetent, meaning the Applicant could not establish sufficient cause, the critical pre-requisite to stay.

p. 7
02

Whether the Tribunal's orders can attract stay of execution

Holding

The impugned orders were orders in the negative (dismissals) and cannot attract stay of execution; the plea for stay was premature and misconceived

Reasoning

The Tribunal dismissed the preliminary objection and the Applicant's application, and vacated the ex-parte orders. Following Western College v Oranga and related authority, a dismissal order does not order any party to do or refrain from doing anything, and is thus incapable of execution save in respect of costs. Stay of execution of such orders is legally untenable.

p. 8
03

Whether substantial loss was demonstrated

Holding

The Applicant failed to demonstrate substantial loss; the Respondent had lost possession under an ex-parte order later found to be illegally obtained and vacated, and would pay rent if reinstated

Reasoning

Substantial loss is the cornerstone of stay of execution. The Applicant's claim of loss rested on having leased the premises to a third party, but the Respondent's dispossession flowed from an ex-parte order obtained illegally and since vacated. The Respondent as lawful tenant would pay rent during occupation, and the Landlord and Tenants Act protects tenants. Mere recital of statutory words without evidence is insufficient.

p. 10
04

Whether stay of proceedings should issue

Holding

Stay of proceedings was refused; the Applicant did not establish the requisite ingredients for so grave an order

Reasoning

Stay of proceedings interrupts a party's right to conduct litigation towards trial and should not be granted unless the proceedings beyond all reasonable doubt ought not to continue. No cogent evidence of grave injustice or prejudice was placed before the court. If the appeal succeeds, the Tribunal proceedings would be invalidated and the court can make appropriate orders to atone for loss of time and expenses, so the appeal would not be rendered nugatory.

p. 12

Legal principles established

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  • A negative order (dismissal order) cannot attract an order of stay of execution
  • An appeal against the dismissal of a preliminary objection is not appealable as of right; leave must be sought at delivery of the ruling or within 14 days thereof
  • Sufficient cause is the key that unlocks the discretionary jurisdiction to grant stay of execution pending appeal
  • An order of stay of proceedings is a grave order to be granted sparingly and only where cogent evidence of grave injustice or prejudice is adduced

Court orders

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  1. 1.The Application dated 6th February 2024 be and is hereby Dismissed with costs to the Respondent

Authorities

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Legislation

  • Civil Procedure Rules, 2010Order 42 rule 6(2)
  • Civil Procedure Rules, 2010Order 42 Rule 6(2)(a) and (b)
  • Civil Procedure Rules, 2010Order 43 Rule 1
  • Civil Procedure Act, Chapter 21, Laws of KenyaSection 75
  • Civil Procedure Act, Chapter 21, Laws of KenyaSections 1A, 1B and 3A
  • Constitution of Kenya, 2010Article 159(2)(b)
  • The Landlord and Tenants (Shops, Hotels and Catering Establishment) Act, Chapter 301 Laws of Kenyanot specified
  • Environment and Land Court Act, 2011Section 13(7)

Cases cited (18)

  • Butt v Rent Restriction Tribunal
    (1982) KLR 417
  • Charles Kariuki Njuri v Francis Kimaru Ruara (Suing as the Administrator of the Estate of Ruara Kimaru Alias Benson Ruara Kimaru (Deceased)
    (2020) eKLR
  • Kenya Commercial Bank Ltd v Manase Esipea
    (1999) eKLR
  • Lucy Wanjiku Nyaga v James Mwaniki Munyi & Another
    (2018) eKLR
  • Peter Nyaga Muvake v Joseph Mutunga
    (2015) eKLR
  • Machira T/a Machira & Company Advocate v East African Standard
    (2002) eKLR
  • M N v T A N & Another
    (2015) eKLR
  • Meta Platforms, Inc & another v Samasource Kenya EPZ Limited t/a Sama & 185 others; Central Organization of Trade Unions Kenya & 8 others (Interested Parties)
    (Civil Application E178 of 2023) [2023] KECA 999 (KLR) (28 July 2023) (Ruling)
  • G R Mandavia v Rattan Singh
    [1965] EA 118
  • Western College of Arts and Applied Sciences v Oranga & Others
    (1976-80) 1 KLR
  • 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) (18 February 2022) (Ruling)
  • Kenya Commercial Bank Limited v Tamarind Meadows Limited & 7 Others
    [2016] eKLR
  • Kanwal Sarjit Singh Dhiman v Keshavji Juvraj Shah
    [2008] eKLR
  • Kenya Shell & Company Ltd v Benjamin Kibiru Karuga & Another
    (1986) eKLR
  • David Morton Silverstein v Atsango Chesoni
    [2002] eKLR
  • NNPC & Anor v Odidere Enterprises Nigeria Ltd
    (2008) 8 NWLR (Pt. 1090) 583
  • Wilson v Church
  • Halsbury's Laws of England, 4th Edition, Vol. 37
    pages 330 and 332
On appeal from
Business Premises Rent Tribunal
BPRT Case No. E1016 of 2023
Jurisdiction invoked
Order 42 rule 6(2) of the Civil Procedure Rules, 2010 (appellate jurisdiction over BPRT 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, "Chege v Osidai Limited (Environment and Land Appeal E011 of 2024) [2024] KEELC 1507 (KLR)", Case Analysis (2024). Notice of Motion dated 6th February 2024 (arising from Appeal against BPRT Case No. E1016 of 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/1507/eng@2024-03-20

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