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ELCPartially AllowedNot stated in the judgment (ruling on Notice of motion dated 30th July 2024)· [2025] KEELC 1141 (KLR)

Plaintiff/Respondent v 2nd & 3rd Defendants/Applicants (Stay of Execution Pending Appeal)

Environment and Land Court
21 January 2025
4,335 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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A Nairobi land court halted execution of a judgment pending appeal, but only after the losing parties deposited Kshs.1 million as security.

What this practically means

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Executive summary

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This is a ruling by the Environment and Land Court at Nairobi (Oguttu Mboya J) on a Notice of motion dated 30th July 2024 by the 2nd and 3rd Defendants seeking stay of execution of the judgment delivered on 10th July 2024, pending an intended appeal to the Court of Appeal. The judgment under appeal had decreed cancellation of the 2nd Defendant's certificate of title (and consequential subdivisions) over the suit property, declared the Plaintiff the lawful proprietor, and ordered the Defendants' eviction. The Plaintiff/Respondent opposed, contending that no sufficient cause or substantial loss was established and that the intended appeal raised no arguable grounds. The court framed three issues: sufficient cause, substantial loss, and security. On the first, it held that the filing of the Notice of Appeal and record of appeal constituted sufficient cause, and that the arguability of the appeal was a matter for the Court of Appeal alone. On the second, applying Kenya Shell Ltd v Benjamin Karuga Kibiru and James Wangalwa v Agnes Naliaka Cheseto, it found that eviction and the risk that the Plaintiff, as registered proprietor under Sections 24 and 25 of the Land Registration Act, might alienate the property would occasion ex facie substantial loss and dissipate the substratum of the appeal. On security, balancing the Applicants' Article 48 right of access to justice against the decree holder's right to the fruits of the decree (Article 27), and following Arun C Sharma v Ashana Raikundalia and Nduhiu Gitahi v Warugongo, the court ordered security of Kshs.1,000,000 deposited in an escrow account in the joint names of the advocates within 30 days, failing which the stay lapses automatically. The application was allowed with costs abiding the outcome of the appeal.

Key legal issues

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01

Sufficient cause under Order 42 Rule 6(1)

Holding

The filing of a Notice of Appeal and a record of appeal in the Court of Appeal constitutes sufficient cause.

Reasoning

The court held that sufficient cause is the launch pad for stay under Order 42 Rule 6(1). Since the Applicants filed a Notice of Appeal and later availed evidence of a record of appeal, sufficient cause was established. The court further held that the arguability of the intended appeal is for the Court of Appeal alone, so the Respondent's submissions on that point were misplaced and premature.

p. 5
02

Substantial loss

Holding

Eviction from, and the risk of alienation of, the suit property would occasion ex facie substantial loss to the Applicants.

Reasoning

Relying on Kenya Shell Ltd v Benjamin Karuga Kibiru and James Wangalwa v Agnes Naliaka Cheseto, the court held that execution of a lawful decree alone is not substantial loss. However, because the decree entailed cancellation of the Applicants' title and their eviction, and because the Plaintiff, as registered proprietor under Sections 24 and 25 of the Land Registration Act, could alienate the property and dissipate the substratum of the appeal, substantial loss was established.

p. 7
03

Security for due performance of the decree

Holding

Security is the instrument by which the court balances the appellant's right of access to justice against the decree holder's right to the fruits of the decree; Kshs.1,000,000 in an escrow account was fixed.

Reasoning

The court weighed the Applicants' Article 48 right of access to justice against the Respondent's entitlement to the fruits of a lawful decree, invoking Article 27's equality guarantee. Citing Arun C Sharma v Ashana Raikundalia and Nduhiu Gitahi v Warugongo, it held security must be reasonable and tangible, and ordered Kshs.1,000,000 into an escrow account, failing which the stay lapses.

p. 8

Legal principles established

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  • The filing and lodgment of an appeal constitutes sufficient cause for stay, subject to substantial loss and security under Order 42 Rule 6(2).
  • Whether an intended appeal is arguable is a matter for the appellate court, not the trial court seized of a stay application.
  • Substantial loss is loss not readily compensable by monetary compensation; the mere threat of execution of a lawful decree is not substantial loss.

Court orders

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  1. 1.The Application dated the 30th July 2024 be and is hereby allowed.
  2. 2.An order of stay of execution of the Judgment dated the 10th July 2024 and the resultant decree pending the hearing and determination of the appeal to the Court of Appeal.
  3. 3.The 2nd and 3rd Defendants/Applicants to provide security for the due performance of the Decree that may ultimately arise.
  4. 4.Security in the sum of Kshs.1,000,000/= only to be deposited in an Escrow account in the names of the advocates for the Plaintiff/Respondent and the Applicants.
  5. 5.The security to be deposited in a reputable bank/financial institution to be agreed upon by the designated advocates within 30 days.
  6. 6.In default of compliance, the orders of stay shall automatically lapse and the Plaintiff/Respondent shall be at liberty to proceed with execution.
  7. 7.Costs of the Application shall abide the outcome of the Appeal.
Jurisdiction invoked
Order 42 Rule 6(1) and 6(2) of the Civil Procedure Rules 2010

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, "Plaintiff/Respondent v 2nd & 3rd Defendants/Applicants (Stay of Execution Pending Appeal)", Case Analysis (2025). Not stated in the judgment (ruling on Notice of motion dated 30th July 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/1141/eng@2025-01-21

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