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ELRCDismissedNot stated in the extract provided (suit determined by judgment of 21.06.2019; application dated 27.07.2020)· [2020] KEELRC 329 (KLR)

Geoffrey Gitau Wainoga v Goal South Sudan [2020] KEELRC 329 (KLR)

Employment and Labour Relations Court
23 October 2020
BOByram Ongaya
890 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~4 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that a stay of execution pauses interest on a judgment debt and parties cannot reopen issues already settled by a consent order.

What this practically means

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Executive summary

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The claimant, who had obtained judgment in the sum of Kshs. 8,885,972.00 payable by 01.09.2019 failing which interest would run, filed a notice of motion dated 27.07.2020 seeking release of half the decretal sum (Kshs. 4,442,986.00) held in a joint interest-earning account of the parties' advocates at ABSA Bank, and an order that the respondent deposit interest of Kshs. 16,794,487.07 computed from the date of institution of the suit to 31.07.2020. The claimant argued that as the decretal sum represented his salaries and allowances for 2002 to 2005, and given his capacity to repay should the appeal succeed, it was just to enjoy part of the fruits of the judgment. The respondent opposed, contending that interim stay granted on 08.08.2019 preceded the date interest would start running; that delays in opening the joint account were attributable to the claimant; and that the stay application had been compromised by a consent order which was fully satisfied. The court held that the interim stay of execution had the effect of staying the running of interest, so the interest claim collapsed. It further held that the release of half the decretal sum was a matter that ought to have been raised in the stay application; that application having been determined by consent and no review having been sought, the parties were bound by the consent order. The application was dismissed with costs on 23rd October 2020.

Key legal issues

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01

Whether interest on the decretal sum began to run notwithstanding the stay of execution

Holding

The interim stay of execution granted on 08.08.2019, prior to the payment deadline of 01.09.2019, temporarily stayed the obligation to pay and therefore stayed the running of interest; the claim for interest collapses.

Reasoning

The judgment required payment of the decretal sum by 01.09.2019 failing which interest would run. Interim stay was granted on 08.08.2019, before that deadline. The court held the stay temporarily suspended the payment requirement, so interest could not accrue while the stay was in place. The parties later compromised and confirmed the stay order, cementing that position.

p. 2
02

Whether the claimant could obtain release of half the decretal sum after the stay application had been compromised by consent

Holding

No. The release should have been sought in the stay application; that application was determined by the consent order and, absent review, the parties are bound by it.

Reasoning

The court found that the stay application was compromised by the consent order and that the deposit of the decretal sum had been effected and confirmed by a consent recorded on 06.05.2020. The order for stay was therefore fully satisfied and in place. The claimant's personal circumstances relating to the decretal sum (salaries and allowances for 2002-2005) were matters for the stay application, which was not raised there and cannot be raised now without a review.

p. 2

Legal principles established

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  • An interim stay of execution granted before the date fixed for payment of the decretal sum has the effect of staying the running of interest on the decretal sum.
  • Parties are bound by a consent order compromising an application for stay of execution, and matters not raised in that application cannot be raised later absent a review.

Court orders

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  1. 1.The application filed for the claimant dated 27.07.2020 is dismissed with costs

Authorities

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Legislation

  • Employment and Labour Relations Court Rules, 2016rule 17
  • Employment and Labour Relations Court Rules, 2016rule 29(3)
  • Civil Procedure Rules, 2010Order 51 rule 1
  • Civil Procedure Rules, 2010Order 51 rule 3
  • Civil Procedure Actsection 3A
Jurisdiction invoked
Rules 17 and 29(3) of the Employment and Labour Relations Court Rules, 2016, Order 51 rules 1 and 3 of the Civil Procedure Rules, 2010 and section 3A of the Civil Procedure Act

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, "Geoffrey Gitau Wainoga v Goal South Sudan [2020] KEELRC 329 (KLR)", Case Analysis (2020). Not stated in the extract provided (suit determined by judgment of 21.06.2019; application dated 27.07.2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/329/eng@2020-10-23

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