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ELRCAllowedNot stated in judgment· [2013] KEELRC 13 (KLR)

Jasper Nyaboga v Party of National Unity; Equity Bank Limited (Garnishee) [2013] KEELRC 13 (KLR)

Industrial Court (Employment and Labour Relations Court)
17 December 2013
JRJames Rika
304 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~1 min to read original · ~4 min brief

The bottom line

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A Kenyan employment court ordered an employer to deposit Kshs.5 million in cash as security after it ignored a prior order to provide a title deed.

What this practically means

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Executive summary

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This short interlocutory ruling by the Industrial Court at Nairobi, delivered by James Rika, Judge, on 17th December 2013, determined an application by the Claimant dated 2nd September 2013. The Claimant sought variation of paragraph 1(d) of the Court's order of 1st August 2013, which had required the Respondent to deposit a land title deed as security for any compensatory award and terminal dues, in place of a cash deposit of Kshs.5,000,000. The Court had directed that the title deed be deposited by 9th August 2013, failing which the Respondent could seek variation reverting to the cash deposit option. Both parties agreed before the Court that the Respondent had not deposited a title deed as ordered. The Court found that the Respondent offered no convincing reason for its non-compliance, having merely returned with a restatement of its earlier argument that a cash deposit would hamper its operations. The Court concluded that the Respondent had not taken its orders seriously and exercised its discretion to vary the order of 1st August 2013. The Respondent was ordered to deposit cash security of Kshs.5,000,000 in Court within 7 days, in default of which the Claimant would be at liberty to execute. The Court further directed that the main claim be scheduled for hearing at the Court Registry on a priority basis, and made no order as to costs beyond costs in the cause.

Key legal issues

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01

Variation of an order for security due to the Respondent's non-compliance

Holding

The order for deposit of a title deed was varied to a cash deposit of Kshs.5,000,000

Reasoning

The parties agreed the Respondent had not deposited the title deed as ordered. The Court found the Respondent offered no convincing reason for the non-compliance and had merely repeated prior arguments about the impact of a cash deposit on its operations, demonstrating that it had not taken the Court's orders seriously. The Court therefore exercised its discretion to revert to the earlier alternative of a cash deposit, with execution available on default, and directed priority hearing of the main claim.

p. 2

Legal principles established

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  • A party who fails to comply with a court order without convincing justification cannot resist variation of that order to secure the claimant's position

Court orders

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  1. 1.The order issued on 1st August 2013 is varied
  2. 2.The Respondent shall deposit in Court a cash security of Kshs.5,000,000 instead of a land title deed
  3. 3.The said amount be deposited within 7 days, in default the Claimant shall be at liberty to execute
  4. 4.The parties to schedule the main claim for hearing at the Court Registry on a priority basis
  5. 5.Costs in the Cause
Jurisdiction invoked
Not stated; interim application in a pending employment claim

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, "Jasper Nyaboga v Party of National Unity; Equity Bank Limited (Garnishee) [2013] KEELRC 13 (KLR)", Case Analysis (2013). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/13/eng@2013-02-17

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