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ELRCDismissedNot stated in the judgment· [2020] KEELRC 206 (KLR)

Joseph Kahoro Mundia t/a Upstate Kenya Auctioneers v Aggrey Onyango Ober;Steelmakers Limited (Respondent) [2020] KEELRC 206 (KLR)

Employment and Labour Relations Court
11 November 2020
2,710 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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This was a Notice of Motion dated 14th September 2020 by the Respondent/Applicant (the judgment debtor) seeking an interim stay of execution of the court's judgment and decree dated 13th December 2018, quashing of the 2nd Respondent auctioneer's proclamations, a declaration that the execution proceedings were a nullity, cancellation of the warrants of attachment and sale, and an interpretation of whether the dues owing to the 1st Respondent were subject to statutory deductions. The Applicant contended that execution was filed out of time without a notice to show cause, that the warrants were procured irregularly, and that they contained an apparent error, condemning it to pay over Kshs. 500,000 instead of approximately Kshs. 293,788/-. The 1st Respondent countered that the one-year period under Order 22 Rule 18(1) runs from the date of the decree (18th September 2019), not the date of judgment, so no notice to show cause was required; it acknowledged an error only in the total summation of the warrants and did not oppose statutory deductions under section 49(2) of the Employment Act. The 2nd Respondent auctioneer explained the attachment of motor vehicle KCB 677E and blamed its detention at Athi River Police Station on the Applicant's own orchestration. In a judgment delivered on 11th November 2020, Lady Justice Hellen Wasilwa held that the Applicant had not demonstrated the Order 42 rule 6(1) conditions for stay, dismissed the stay application, referred the calculation issue to the Deputy Registrar, directed that execution proceed within 7 days, and ordered the Applicant to pay the costs of the application and of the Auctioneers.

Key legal issues

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01

Whether stay of execution was merited

Holding

Stay refused; the Applicant did not satisfy any of the Order 42 rule 6(1) conditions

Reasoning

The court set out the requirements under Order 42 rule 6(1): prompt filing, demonstration of irreparable harm, and willingness to provide security. It found the Applicant had demonstrated none of these and had also failed to show precisely where the alleged miscalculations lay, and therefore declined the stay.

p. 4
02

Whether execution required a prior notice to show cause under Order 22 Rule 18(1)

Holding

Not required because the warrants were obtained within one year of the decree, not of the judgment

Reasoning

The 1st Respondent contended, and the court proceeded on the basis, that the one-year period runs from the date of the decree (18th September 2019) and not from the date of judgment (13th December 2018). Warrants issued on 20th September 2019/10th August 2020 were thus within time, and no notice to show cause was necessary. The court did not disturb the execution on this ground.

p. 2
03

Whether the warrants contained an apparent error on the face of the record

Holding

An error in the total summation of the warrants was acknowledged, but the court did not quash the warrants; instead it referred the calculation issue to the Deputy Registrar and allowed execution to proceed

Reasoning

Both parties acknowledged a discrepancy between the figure on the warrants (over Kshs. 500,000) and the correct figure (Kshs. 293,788/- inclusive of costs and interest). Rather than quash or nullify the execution, the court adopted a curative course, referring the computation to the Deputy Registrar for directions before execution proceeds within seven days.

p. 4
04

Whether the decretal dues are subject to statutory deductions

Holding

The 1st Respondent had no objection to statutory charges as provided by law; the court made no express interpretive order on this question

Reasoning

The Applicant sought an interpretation of whether the dues owing to the 1st Respondent were subject to statutory deductions under the Employment Act. The 1st Respondent conceded it had no problem with statutory charges imposed by law under section 49(2). The court did not issue a standalone interpretation on this head, dealing with the matter through the referral of calculations to the Deputy Registrar.

p. 3

Legal principles established

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  • A court granting stay under Order 42 rule 6(1) must be satisfied of prompt filing, irreparable harm and security; the party seeking stay bears the burden of demonstrating these conditions

Court orders

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  1. 1.Application for stay of execution dismissed as not warranted
  2. 2.Issue of calculation of the decretal figures referred to the Deputy Registrar for further directions
  3. 3.Execution to proceed within 7 days thereafter
  4. 4.Applicant to pay costs of the application and of the Auctioneers

Authorities

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Legislation

  • Civil Procedure ActOrder 42 rule 6(1)
  • Civil Procedure RulesOrder 22 Rule 18(1)
  • Civil Procedure RulesOrder 22 Rules 17 and 18
  • Employment ActSection 19(1)(f)
  • Employment ActSections 49 and 49(2)
  • Auctioneers RulesRule 7

Cases cited (5)

  • National Bank of Kenya Ltd v Ndungu Njau
    [1997] eKLR
  • Kioko Joseph v Bamburi Cement Ltd
    [2017] eKLR
  • Rose Chepkorir v Mwinyi Mohammed Riva & another
    [2015] eKLR
  • Yasmin Mohammed Ali v RBS Limited; Bhupesh Lakihani & another (Objectors)
    [2019] eKLR
  • Muganda Wasulwa t/a Keysian Auctioneers v National Cereals & Produce Board
    [2015] eKLR
Jurisdiction invoked
Inherent execution/review powers of the court that delivered the judgment of 13th December 2018, invoked through the Civil Procedure Act and Rules (Order 42 rule 6(1), Order 22 Rules 17 and 18)

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, "Joseph Kahoro Mundia t/a Upstate Kenya Auctioneers v Aggrey Onyango Ober;Steelmakers Limited (Respondent) [2020] KEELRC 206 (KLR)", Case Analysis (2020). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/206/eng@2020-11-11

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