Sheikh & 18 others v Elegant Holdings Limited & 6 others (Environment and Land Case E018 of 2023) [2026] KEELC 2558 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Whether the stay of proceedings application was merited
Not merited; the Applicants failed to meet the threshold and the balance of justice required the suit to proceed to hearing without delay.
The Court applied the settled principles that stay of proceedings is a draconian, discretionary remedy granted sparingly. The Applicants had filed a Notice of Appeal but demonstrated no substantial loss; the joinder of the 7th Defendant had already been executed and his participation occasioned no irreparable harm. Conversely, the Plaintiffs demonstrated ongoing prejudice including property dilapidation, contempt of court orders, and NCA findings that Blocks 1–4 were uninhabitable. Delay would worsen the harm and render the suit nugatory.
Whether the Plaintiffs demonstrated urgency and irreparable harm sufficient to defeat the stay
Yes; the harms were actual and imminent, supported by official inspection reports, photographs and prior judicial rulings, and could not be compensated by damages.
Applying Giella v Cassman Brown and Nguruman, the Court found irreparable harm must be actual, imminent and not speculative. The NCA's declaration that the property was uninhabitable, its Suspension of Work Order, ongoing contempt of the 19th October 2023 injunction, and worsening dilapidation showed delay would expose the Plaintiffs to health risks, property loss and potential collapse of structures. The Applicants' joinder grievance could be ventilated both at trial and on appeal.
Whether the Applicants met the Order 42 Rule 6(1) threshold
They did not; they failed to demonstrate an arguable appeal, substantial loss, or nugatory effect, and offered no security for costs.
The Court noted the Applicants annexed no Memorandum or draft Grounds of Appeal, no stay orders from the Court of Appeal under Rule 5(2)(b) of the Appellate Jurisdiction Rules had been obtained, no substantial loss was shown since the joinder had been fully executed, and no security for costs was proposed as required by Order 42 Rule 6(2). These cumulative conditions balance the right of appeal against the constitutional imperative of expeditious disposal under Article 159(2)(b).
Whether the competing interests of justice favoured continuation or suspension pending appeal
Continuation of the suit; the Plaintiffs' right to timely adjudication and protection from ongoing harm outweighed the Applicants' interest in suspending proceedings.
The Court weighed the appellate process against the need to prevent ongoing harm. The joinder grievance was ventilable at trial and on appeal without irreparable harm to the Applicants, whereas the Plaintiffs faced risks of structural collapse, health hazards and loss of investment, evidenced by the NCA report, photographs and affidavits. Delay would potentially render the suit nugatory, and judicial resources must be safeguarded against abuse of process.
Who bears the costs of the application
The Applicants, having failed in their bid for stay, must bear the costs; costs follow the event under Section 27(1) of the Civil Procedure Act.
The Court reaffirmed that costs are discretionary and follow the event unless there are compelling reasons to depart. The Respondents were compelled to file replying affidavits, grounds of opposition and submissions to resist an unmerited application, and were therefore entitled to indemnification. No exceptional circumstances justified departure from the general rule.
Legal principles established
#- Stay of proceedings is a grave judicial action that interferes with a litigant's right to conduct litigation and access to justice; the test is high and stringent, and the remedy is to be granted sparingly only in exceptional circumstances.
- The mere filing of an appeal does not automatically halt proceedings; the applicant for stay must demonstrate sufficient cause, including substantial loss, an arguable appeal, expeditious filing and security for costs.
- The right of appeal is preserved but cannot be exercised at the expense of a party facing imminent, irreparable harm not compensable by damages.
Court orders
#- 1.The Notice of Motion application dated 13th January, 2026 seeking stay of proceedings pending Civil Appeal No. E002 of 2026 is found to lack merit and is dismissed.
- 2.The costs of the application dated 13th January 2026 shall be borne by the 4th and 7th Defendants/Applicants.
- 3.The matter shall proceed to hearing on the scheduled dates of 4th & 5th May, 2026, with parties directed to fully comply with all the Pre-Trial requirements and orders in accordance with Order 11 of the Civil Procedure Rules, 2010.
- Jurisdiction invoked
- Sections 1A, 3A and 63(e) of the Civil Procedure Act, Cap. 21; Order 42 Rule 6(1) and Order 51 Rule 1 of the Civil Procedure Rules, 2010; Article 159(2) of the Constitution of Kenya, 2010
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Sheikh & 18 others v Elegant Holdings Limited & 6 others (Environment and Land Case E018 of 2023) [2026] KEELC 2558 (KLR)", Case Analysis (2026). ELC E018 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/2558/eng@2026-04-30
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.