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ELRCDismissedNotice of motion dated 11th March 2014 (Industrial Court claim filed in High Court at Nairobi on 4th December 2008, transferred 28th January 2011)· [2014] KEELRC 1063 (KLR)

Francis N Gachuri v Energy Regulatory Commission [2014] KEELRC 1063 (KLR)

Industrial Court of Kenya
6 June 2014
1,963 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Industrial Court refused to pause payment of a Kshs 4.4 million award because the employer waited eight months to ask, and waiting kills such applications.

What this practically means

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Executive summary

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The Respondent/Applicant, whose termination of the Claimant's employment was found unfair in a judgment delivered on 8th July 2013 awarding Kshs 4,423,361.40 (12 months' salary and 31 pending leave days), moved the Industrial Court by notice of motion dated 11th March 2014 seeking stay of execution of the decree pending an intended appeal to the Court of Appeal. The Claimant opposed, arguing inordinate delay, lack of means to refund being absent as a concern since he was a man of means, and that the court was functus officio. The court held that under Rule 41 of the Court of Appeal Rules it had jurisdiction to hear the application in the first instance, rejecting the functus officio objection. On the merits, the court found the application filed eight months after judgment without explanation: the applicant lodged a notice of appeal and requested proceedings in July 2013 but took no follow-up, ignoring the draft decree, the decree and a demand letter, and moving only after a bill of costs was filed. The proceedings had in fact been typed since 11th September 2013. This was inordinate, inexcusable delay. Further, the applicant failed to prove substantial loss, as the Claimant deponed he owned immovable property exceeding the decretal sum and would refund it if the appeal succeeded. The court declined to decide whether the appeal was arguable, noting most draft grounds raised issues of fact whereas appeals from the Industrial Court lie only on matters of law. The application was dismissed with costs on 6th June 2014.

Key legal issues

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01

Jurisdiction of the trial court to grant stay pending appeal

Holding

The Industrial Court has jurisdiction as the superior court in the first instance under Rule 41 of the Court of Appeal Rules

Reasoning

The court held that Rule 41 of the Court of Appeal Rules provides that stay of execution be made in the superior court in the first instance. Since the applicant made the application to the Industrial Court first, the Claimant's argument that the court lacked jurisdiction had no basis, as the Rules donate jurisdiction to the trial court.

p. 2
02

Inordinate delay in bringing the application

Holding

A delay of eight months from judgment to application, with no explanation and no follow-up on proceedings, was inordinate and inexcusable

Reasoning

Judgment was delivered on 8th July 2013 and a notice of appeal lodged on 10th July 2013, but the applicant then did nothing - not responding to the draft decree of 4th November 2013, service of the decree on 19th December 2013, or the Claimant's demand letter. It moved only after the bill of costs was filed on 5th March 2014. The applicant never paid the deposit for typing although proceedings were ready by 11th September 2013.

p. 3
03

Whether the applicant would suffer irreparable harm/substantial loss

Holding

The applicant failed to prove the decretal sum would be unrecoverable; the Claimant deponed he owns immovable property worth more than the decretal sum and would refund it

Reasoning

The applicant asserted the Claimant could not repay the decretal sum but adduced no evidence. The Claimant, in his replying affidavit, stated he is not a man of straw, has invested in immovable property whose value exceeds the decretal sum, and would be capable and willing to refund the money should the appeal succeed. The claim of substantial loss was therefore unproven.

p. 3
04

Whether the appeal is arguable

Holding

The court declined to decide arguability since the first two conditions were sufficient to dismiss the application; it noted most draft grounds were matters of fact, not law

Reasoning

The court observed that authorities differ on whether the stay court should assess arguability. It found that the draft memorandum of appeal raised mostly issues of fact rather than law, appeals lying only on matters of law, but held it need not determine the question because inordinate delay and failure to prove irreparable harm sufficed to dispose of the application.

p. 4

Legal principles established

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  • Stay of execution pending appeal is to be sought in the superior court in the first instance, which donates jurisdiction to the trial court
  • Stay of execution is a discretionary remedy and the court will not exercise its discretion in favour of a litigant guilty of laches
  • An appeal does not operate as a stay; the applicant must show the appeal is not being used to delay justice, absence of undue delay, and loss that cannot be recovered
  • Appeals from the Industrial Court lie only on matters of law

Court orders

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  1. 1.The application dated 11th March 2014 is dismissed
  2. 2.The Respondent/Applicant shall pay the Claimant's costs of the application

Authorities

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Legislation

  • Court of Appeal RulesRule 41
  • Industrial Court ActSection 17
  • Industrial Court (Procedure) RulesRule 27(4)

Cases cited (8)

  • Mary Kina V Menengai Oil Refineries & Another
    [2010] eKLR
  • Andrew Kuria Njuguna V Wambui Kuria
    [2010] eKLR
  • In Re Estate of Kipsang Kandie (Deceased)
    [210] eKLR
  • James Wangalwa & Another V Agnes Naliaka Cheseto
    {2012] eKLR
  • African Safari Club Limited V Safe Rentals Limited
    [2010] eKLR
  • Esther Wanjiru vs Jackline Arege
    [2014] eKLR
  • Equity Bank Limited vs West Link MBO Limited
    [2013] eKLR
  • Ishamel Kagunyi Thande vs Housing Finance Company of Kenya Ltd
Jurisdiction invoked
Rule 41 of the Court of Appeal Rules (stay of execution to be made in the superior court in the first instance); Industrial Court Act and Industrial Court (Procedure) Rules

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (7)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Francis N Gachuri v Energy Regulatory Commission [2014] KEELRC 1063 (KLR)", Case Analysis (2014). Notice of motion dated 11th March 2014 (Industrial Court claim filed in High Court at Nairobi on 4th December 2008, transferred 28th January 2011). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1063/eng@2014-06-06

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