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ELRCPartially AllowedNot stated in judgment· [2013] KEELRC 300 (KLR)

MICHAEL MWALO V BOARD OF TRUSTEES NATIONAL SOCIAL SECURITY FUND [2013] KEELRC 300 (KLR)

Industrial Court of Kenya
15 May 2013
1,107 words in judgment
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The bottom line

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A Kenyan employment court paused enforcement of a Kshs 15 million judgment, but only on condition the employer keeps paying the worker's full salary.

What this practically means

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Executive summary

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This ruling of the Industrial Court at Nairobi, delivered by Linnet Ndolo, Judge, on 15th May 2013, determines the Respondent's (National Social Security Fund's) application for stay of execution pending appeal dated 25th March 2013. The application followed the court's ruling of 18th March 2013 dismissing the Respondent's application for review of a consent judgment adopted on 20th November 2012. The Claimant opposed the application, arguing that the court was functus officio given the Respondent's multiple prior stay applications, that the application amounted to an appeal over which the court had no jurisdiction, and that the authorities cited were remote as none related to consent judgments. The court held that this was the first application for stay pending appeal under Order 42 Rule 6 of the Civil Procedure Rules and that the Respondent was properly before it. Restating the Reliance Bank test - an arguable appeal and nugatory effect - the court noted the decretal sum exceeded Kshs 15 million, which the Claimant would find difficult to refund were the appeal to succeed. The court also took into account that the Claimant remained on salary and that the Respondent had withdrawn a letter seeking to re-assign him. Balancing the scales of justice, the court granted a stay of execution pending appeal on condition that the Respondent keep the Claimant on full salary pending determination of the appeal, and made no order for costs.

Key legal issues

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01

Functus officio / jurisdiction

Holding

The court was not functus officio; this was the first application for stay pending appeal under Order 42 Rule 6.

Reasoning

Although the Respondent had previously sought stay, none of those applications was a stay pending appeal under Order 42 Rule 6 of the Civil Procedure Rules. The attachment of a Draft Memorandum of Appeal did not convert the application into an appeal over which the court lacked jurisdiction; the Respondent was properly before the court.

p. 2
02

Conditions for stay of execution pending appeal

Holding

Stay granted because the decretal sum of over Kshs 15 million would be difficult to refund and the appeal was not shown to be frivolous.

Reasoning

Applying the two-pronged test of arguability and nugatory effect, the court found the decretal amount in excess of Kshs 15 million to be a large sum that the Claimant would find difficult to refund if the appeal succeeded. It also noted the Claimant remained on salary and that the Respondent's letter seeking to re-assign the Claimant had been withdrawn, and balanced the scales in favour of a conditional stay.

p. 3

Legal principles established

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  • Stay pending appeal requires an arguable appeal and that the appeal would be rendered nugatory if stay is not granted
  • In assessing nugatory effect the court considers the magnitude of the decretal amount and the circumstances of the claimant

Court orders

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  1. 1.Stay of execution pending appeal granted
  2. 2.Respondent directed to keep the Claimant on full salary pending determination of the appeal
  3. 3.No order for costs
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, "MICHAEL MWALO V BOARD OF TRUSTEES NATIONAL SOCIAL SECURITY FUND [2013] KEELRC 300 (KLR)", Case Analysis (2013). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/300/eng@2013-05-15

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