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ELRCAllowed· [2019] KEELRC 2154 (KLR)

Alexander Kasina Mukala v Kenya Power and Lighting Company [2019] KEELRC 2154 (KLR)

Employment and Labour Relations Court
20 February 2019
2,229 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan employment court paused enforcement of a Kshs. 637,312 award because the employer agreed to deposit the money in court while appealing.

What this practically means

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Executive summary

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This is a ruling by the Employment and Labour Relations Court on a Notice of Motion dated 23rd October 2018 seeking a stay of execution of the court's own judgment delivered on 9th October 2018, which had awarded the Claimant Kshs. 637,312/- as compensation for unfair termination, with costs and interest, together with an initial 15-day stay. The application, brought by the Respondent (the party against whom judgment was entered, which had filed a Notice of Appeal to the Court of Appeal), invoked Order 42 Rule 6 of the Civil Procedure Rules, Section 17 of the Employment and Labour Relations Court Act and Section 3A of the Civil Procedure Act. The Claimant opposed, asserting he was in business and able to refund the decretal sum, and urged that a successful litigant should enjoy the fruits of judgment in a matter filed some ten years earlier. Both parties filed written submissions citing the settled principles on stay of execution. The court held that the Applicant satisfied two of the three Order 42 Rule 6(2) conditions - the application was filed without unreasonable delay (14 days after judgment) and the Applicant was ready to deposit the decretal sum as security. On substantial loss, the court found the Claimant had failed to substantiate the business he claimed to conduct and therefore failed to prove he could refund the decretal sum if the appeal succeeded. The court exercised its discretion and allowed the stay on condition that the Respondent deposits the decretal sum in court within 30 days, failing which execution to issue. Costs were ordered to abide the outcome of the appeal. Dated 20th February 2019, delivered by Hellen Wasilwa, J.

Key legal issues

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01

Whether the conditions in Order 42 Rule 6(2) for stay of execution pending appeal were satisfied

Holding

The court found the Applicant satisfied two conditions outright (no unreasonable delay and willingness to furnish security by depositing the decretal sum) and, on substantial loss, found the Claimant had failed to prove capacity to refund, and granted a conditional stay.

Reasoning

The court applied Order 42 Rule 6(2). It found the application filed 14 days after judgment, hence timely. The Applicant offered to deposit the decretal sum in court as security. On substantial loss, the Claimant asserted he was in business and able to repay, but did not substantiate the nature of the business or its output, so he failed to prove he could cushion the Applicant if the appeal succeeded. The court therefore exercised its discretion in favour of a conditional stay.

p. 3

Legal principles established

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  • A party seeking to resist a stay on the ground that the decree-holder can repay the decretal sum if the appeal succeeds bears the evidentiary burden of substantiating that capacity
  • A court may grant a stay conditional on the deposit of the decretal sum in court, thereby securing the successful party's interests while preserving the appeal

Court orders

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  1. 1.Stay of execution of the judgment of 9th October 2018 granted on condition that the Respondent deposits the decretal sum in Court within 30 days from the date of the ruling
  2. 2.In default of the deposit, execution to issue
  3. 3.Costs to abide the outcome of the appeal

Authorities

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Legislation

  • Employment and Labour Relations Court ActSection 17
  • Civil Procedure ActSections 3A, 75, 78, 79G
  • Civil Procedure Rules, 2010Order 42 Rule 6

Cases cited (10)

  • Butt Versus Rent Restriction Tribunal
    (1982) KLR 417
  • Focin Motorcycle Co. Limited Versus Ann Wambui Wangui & Another
    (2018) eKLR
  • Stanley Karanja Wanaina & Another Versus Ridon Ayangu Mutubwa
    Nairobi H.C.C.A 427/2015
  • National Industrial Credit Bank Limited Versus Aquinas Francis Wasike and Another
    (UR) C.A. 238/2005
  • Kenya Hotel Properties Limited Versus Willesden Properties Limited
    Civil Application Number NAI 322 of 2006 (UR)
  • Superior Homes (Kenya) Limited Versus Musango Kithome
    (2018) eKLR
  • G.N Muema P/A (Sic) Mt View Maternity & Nursing Home Versus Miriam Maalim Bishar & Another
    (2018) eKLR
  • Scofinac Company Limited Versus Nelphat Kimotho Muturi
    (2013) eKLR
  • Vishram Raiji Halai Versus Thornton & Turpin
    Civil Application Number Nai. 15 of 1990 (1990) KLR 365
  • Macharia T/A Macharia & Co. Advocates Versus Eas African Standard (No. 2)
    (2002) KLR 63
Jurisdiction invoked
Section 17 of the Employment and Labour Relations Court Act; Sections 3A, 75, 78, 79G of the Civil Procedure Act and Order 42 Rule 6 of the Civil Procedure Rules, 2010; inherent jurisdiction of the Court

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, "Alexander Kasina Mukala v Kenya Power and Lighting Company [2019] KEELRC 2154 (KLR)", Case Analysis (2019). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2154/eng@2019-02-20

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