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ELRCPartially AllowedCauses Nos. 127, 128, 129, 132 and 133 of 2013 (consolidated)· [2015] KEELRC 869 (KLR)

Catherine Muriuki & 4 others v Gucokaniriria Kihato Traders & Farmers Company Limited [2015] KEELRC 869 (KLR)

Industrial Court (Employment and Labour Relations Court)
26 June 2015
870 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer owing sacked workers compensation got only a short grace period to pay in full, because partial payment alone doesn't justify installments.

What this practically means

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Executive summary

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This ruling determines the respondent's notice of motion filed on 10.03.2015 in the consolidated employment causes following the court's judgment of 6.06.2014, which awarded the claimants one month's salary in lieu of notice, salary for the suspension period up to 3.12.2013, eight months' salary as compensation for unfair dismissal, costs, and certificates of service, quantified at Kshs.1,117,566.30 and undisputed. The respondent sought a stay of execution and leave to liquidate the decretal sums in monthly installments of not less than Kshs.50,000.00, invoking sections 1A, 3 and 3A of the Civil Procedure Act, Rule 31(2) of the Industrial Court Rules 2010 and Order 21 Rule 12 and Order 51 Rule 1 of the Civil Procedure Rules 2010, citing financial constraints. The claimants opposed through grounds of opposition, arguing the application was belated, an afterthought prompted only by execution, that the offered installments were too minimal, and that the respondent had irregularly and selectively paid some claimants directly. The court found part-payments of about Kshs.800,000.00 in causes 133, 129 and 128 plus Kshs.238,214.00 through the advocates, leaving causes 127 and 132 unsettled. It held part-payment alone insufficient cause under Order 21 Rule 12(2) and that financial constraints were unproven. The application was allowed only in part: the respondent must pay the entire outstanding sum and costs by 1.09.2015, failing which interest at court rates runs from 6.06.2014; a stay of execution was granted only until 1.09.2015; and the respondent was ordered to pay the costs of the application and outstanding auctioneers' costs consequential to the interim stay. Delivered at Nyeri by Byram Ongaya, Judge, on 26th June 2015.

Key legal issues

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01

Entitlement to payment by installments under Order 21 Rule 12(2)

Holding

Partial payment did not suffice; the respondent failed to prove financial constraints, so the court did not order the proposed installments of Kshs.50,000.00

Reasoning

Order 21 Rule 12(2) permits postponement or installment payment on the judgment-debtor's application and with sufficient cause shown. The court accepted the respondent had shown seriousness by paying part of the decretal sum, but held that alone was insufficient. The alleged financial constraints were not demonstrated, and the selective full payment of some claimants (causes 133, 129 and 128) to the exclusion of others (causes 127 and 132) undermined the application. The court instead fixed a final payment date with interest as a default sanction.

p. 2
02

Interest on the judgment sum pending payment

Holding

The claimants are entitled to interest at court rates on the entire judgment sum including costs if not paid by 1.09.2015

Reasoning

Having declined the installment regime, the court balanced the respondent's partial compliance with the claimants' right to the fruits of judgment by allowing a short, defined stay to 1.09.2015 with a default interest sanction running from the judgment date of 6.06.2014. This incentivised prompt full settlement while protecting the decree-holders from indefinite delay.

p. 2

Legal principles established

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  • After a decree for payment of money, the court may postpone or order payment by installments only on the judgment-debtor's application with sufficient cause shown, and part-payment alone is not sufficient cause

Court orders

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  1. 1.The respondent shall pay the entire outstanding judgment sum and costs of the suit, once or in installments, by 1.09.2015, failing which interest at court rates shall be payable thereon from the date of judgment 6.06.2014 till full payment
  2. 2.Stay of execution till 1.09.2015, thereafter the claimants will be at liberty to execute in full satisfaction of the judgment and decree
  3. 3.The respondent shall pay the costs of the application and the outstanding auctioneers' costs consequential to the interim stay of execution orders made after the filing of the application

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 3 and 3A
  • Industrial Court Rules 2010Rule 31(2)
  • Civil Procedure Rules 2010Order 21 Rule 12(1) and (2); Order 51 Rule 1
Jurisdiction invoked
Sections 1A, 3 and 3A of the Civil Procedure Act; Rule 31(2) of the Industrial Court Rules 2010; Order 21 Rule 12(1) and (2) and Order 51 Rule 1 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, "Catherine Muriuki & 4 others v Gucokaniriria Kihato Traders & Farmers Company Limited [2015] KEELRC 869 (KLR)", Case Analysis (2015). Causes Nos. 127, 128, 129, 132 and 133 of 2013 (consolidated). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/869/eng@2015-06-26

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