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ELRCPartially AllowedNairobi Civil Appeal No.274 of 2020 (application dated 20th November, 2020)

Eustace Muchigiri Njuguna v Consolidated Bank of Kenya Limited [2020] KEELRC 16 (KLR)

Employment and Labour Relations Court
15 December 2020
MMM. Mbaru
696 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~3 min to read original · ~4 min brief

The bottom line

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The Employment Court allowed Consolidated Bank to pause paying a Ksh.908,857 award, but only after depositing the money and costs in a joint account.

What this practically means

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Executive summary

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This was an application by the respondent, Consolidated Bank of Kenya Limited, dated 20th November, 2020, seeking a stay of execution of the judgment delivered on 21st May, 2020, in which the claimant was awarded six months' salary of Ksh.779,022, one month's notice pay of Ksh.129,837 and costs. The respondent, having filed a Notice of Appeal and preferred an appeal (Nairobi Civil Appeal No.274 of 2020), offered to deposit security and argued it had an arguable appeal, contending the court erred in finding the termination unfair. The claimant opposed, saying the application merely delayed enjoyment of the fruits of judgment, but proposed that any security be placed in a joint interest-earning account covering the decretal sum of Ksh.908,857, taxed costs of Ksh.223,810 and interest of Ksh.95,430. The court framed the sole issue as the nature and conditions of security for due performance of the judgment pending appeal. Noting the respondent's right of appeal under section 17 of the Employment and Labour Relations Court Act, 2011, and the claimant's valid judgment, the court balanced the parties' interests by ordering the decretal sum and costs deposited in a joint interest-earning account held by both advocates within thirty days, with the claimant identifying the bank. The application was allowed and the stay granted on those conditions, costs following the cause.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether to grant a stay of execution of the judgment delivered on 21st May, 2020 pending appeal
  2. 2.The nature and conditions of the security deposit for the due performance of the judgment following the appeal

Key legal issues

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01

Whether stay of execution should issue pending appeal and on what conditions

Holding

Stay granted conditioned on deposit of decretal sum and costs in a joint interest-earning account, with the claimant identifying the bank.

Reasoning

The court recognised the respondent's statutory right of appeal under section 17 of the ELRC Act while acknowledging the claimant's valid judgment and legitimate right to execute. Balancing both interests, it secured the decretal sum and costs in a joint interest-earning account held by both advocates, rejecting the relevance of the respondent's status as a financial institution. The claimant was to choose the banking institution, and stay was to operate pending the Court of Appeal hearing.

p. 2

Legal principles established

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  • Where a stay pending appeal is granted, the decree-holder's interests should be secured by a deposit in a joint interest-earning account
  • The status of a party as a financial institution confers no special advantage before the court

Court orders

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  1. 1.Application dated 20th November, 2020 allowed; stay of execution granted on condition that the decretal sum of Ksh.908,857 and costs at Ksh.223,810 be deposited in a joint interest earning account held by the advocates of both parties within thirty (30) days
  2. 2.The claimant to identify the banking institution to hold the deposit
  3. 3.Costs to follow cause

The bench

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One judgment of the whole court — no separate or dissenting opinions.

MM
majority

Wrote the judgment

On appeal from
Court of Appeal
Nairobi Civil Appeal No.274 of 2020
Jurisdiction invoked
Section 17 of the Employment and Labour Relations Court Act, 2011

Relief refused

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Unconditional stay of execution without security deposit

The court conditioned the stay on a deposit to balance the parties' interests

p. 2

Costs

Costs shall follow cause.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Accordingly, application dated 20th November, 2020 is hereby allowed and stay of execution is hereby allowed on condition that the decretal sum of Ksh.908, 857 and costs at Ksh.223, 810 shall be deposited in a joint interests earning account held by both the advocates of both parties herein within thirty (30) days and the claimant shall identify the banking institution to hold such deposit.
p. 2Final orders - conditional stay of execution
The fact that the respondent is a financial institution has no bearing in these proceedings as each party has equal rights before the seat of justice.
p. 2Equality of parties before the court
The right of appeal is secured in law and under the provisions of section 17 of the Employment and Labour Relations Court Act, 2011.
p. 2Right of appeal under the ELRC Act

Issues in the judgment

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minor

Internal date inconsistency: judgment states Notice of Appeal dated 2nd September, 2020 yet appeal filed on 15th July, 2020, and Nairobi Civil Appeal No.274 of 2010 appears alongside No.274 of 2020

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, "Eustace Muchigiri Njuguna v Consolidated Bank of Kenya Limited [2020] KEELRC 16 (KLR)", Case Analysis (2020). Nairobi Civil Appeal No.274 of 2020 (application dated 20th November, 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/16/eng@2020-12-15

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