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ELCPartially AllowedNotice of Motion dated 24th January 2024 (ELC appeal from trial court)· [2024] KEELC 5474 (KLR)

Kimani & 2 others v Akuisi Farmers Company Limited & another (Environment and Land Appeal E046 of 2023) [2024] KEELC 5474 (KLR)

Environment and Land Court
25 July 2024
1,698 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan land court granted eviction stay only after judgement debtors agreed to deposit Kshs. 300,000 security, warning imminent eviction alone does not prove substantial loss.

What this practically means

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Executive summary

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This ruling by M. A. Odeny J of the Environment and Land Court at Nakuru, delivered on 25th July 2024, determines a Notice of Motion dated 24th January 2024 in which the applicants sought a stay of execution of the judgment and decree issued on 13th December 2023 in favour of the respondent, pending the hearing and determination of an appeal already lodged. The applicants, through Simon Kimani, argued that the respondents threatened to storm the factory and evict its officials, and that coffee worth 60 million belonging to farmers who are members of the 3rd applicant could not be marketed without government licences, so the appeal would be rendered nugatory. The 1st respondent, through its secretary Stanley Mburu Njoroge, opposed the application as incompetent, noting the trial court had already granted a 90-day stay which had lapsed, and undertaking not to transfer or charge the suit property pending the appeal. The court framed the issue as whether the applicants met the Order 42 Rule 6(2) threshold. It found the application filed timeously; however, applying Kenya Shell v Kibiru and Siegfried Busch v MCSK, it held that imminent eviction was not of itself proof of substantial loss. It rejected the invitation to strike out the respondent's replying affidavit for want of evidence that the commissioning advocate acted for the respondents. The court ordered the applicants to deposit Kshs. 300,000 in a joint interest-earning account within 30 days, failing which the order lapses, with costs of the application to abide the appeal.

Key legal issues

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01

Threshold for stay of execution under Order 42 Rule 6(2)

Holding

Applicants satisfied the requirements: the application was filed timeously and they were willing to give security; stay was granted conditional on a deposit of Kshs. 300,000.

Reasoning

The court applied Order 42 Rule 6(2), which requires substantial loss, absence of unreasonable delay and security for due performance of the decree. Judgment was delivered on 13th December 2023, the memorandum of appeal was filed on 29th December 2023, and the application on 24th January 2024, which the court found timeous. The applicants offered to abide by security directions, and the court fixed the deposit at Kshs. 300,000 in a joint interest-earning account within 30 days, failing which the order lapses.

p. 3
02

Substantial loss

Holding

Mere imminent eviction is not proof of substantial loss; the applicants had already enjoyed a 90-day stay, and substantial loss must be evidenced.

Reasoning

Relying on Kenya Shell Limited v Kibiru and Siegfried Busch v MCSK, the court held that substantial loss is the cornerstone for granting stay and must be demonstrated by evidence. Here the eviction order flowed from a judgment after a full hearing, and the applicants had already been granted a 90-day stay which had lapsed. No material evidence demonstrated, for example, the claimed coffee worth 60 million. The court nonetheless preserved the position by conditioning stay on security.

p. 4
03

Defect of replying affidavit commissioned by an advocate allegedly interested

Holding

The affidavit was not struck out because there was no evidence the commissioning advocate acted for the respondents.

Reasoning

Counsel for the applicants invoked Section 4(1) of the Oaths and Statutory Declarations Act and two authorities to urge that the replying affidavit sworn before Muthoni P. Njuguna, an advocate in the firm on record for the respondents, was defective. The court examined the supplementary affidavit sworn on 10th July 2024 and found no evidence that the said advocate acted for the respondents, and therefore declined to strike out the affidavit.

p. 4

Legal principles established

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  • A court considering stay of execution must balance the rights of the successful litigant against those of the aggrieved appellant, and discretionary power must be exercised judiciously so as not to prevent an appeal.

Court orders

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  1. 1.Applicants to deposit Kshs. 300,000 in a joint interest-earning account for the Advocates for the Applicants and the Respondents within 30 days, failing which the order lapses (stay of execution granted on those terms)
  2. 2.Costs of the application to abide the outcome of the appeal

Authorities

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Legislation

  • Civil Procedure RulesOrder 42 Rule 6 (including 6(2))
  • Oaths and Statutory Declarations ActSection 4(1)

Cases cited (8)

  • Josephine Koki Raymond V Philomena Kanini Maingi (Suing as the Personal Representative of Maingi Musila Mutava (deceased) & Another
    [2018] eKLR
  • Kiptui & Another V Mburu & 3 Others
    [2024] KEELC 289 (KLR)
  • Mukuma V Abuoga
    (1988) KLR 645
  • Siegfried Busch v MCSK
    [2013] eKLR
  • Kenya Shell Limited v. Kibiru
    [1986] KLR 410
  • Butt -v- Rent Restriction Tribunal
    [1979] eKLR
  • Kenya Federation of Labour & Another V Attorney General & 2 Others
    Industrial Court of Kenya 735 of 2012
  • Stephen M’ Mogaka V Independent Electoral & Boundaries Commission(IEBC) & 2 Others
    [2017] eKLR
On appeal from
Trial court (not named in the ruling)
Jurisdiction invoked
Order 42 Rule 6 of the Civil Procedure Rules (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, "Kimani & 2 others v Akuisi Farmers Company Limited & another (Environment and Land Appeal E046 of 2023) [2024] KEELC 5474 (KLR)", Case Analysis (2024). Notice of Motion dated 24th January 2024 (ELC appeal from trial court). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/5474/eng@2024-07-25

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