Jimmy Mathew Labi & 2 others v National Bank of Kenya Limited [2020] KEELRC 481 (KLR)
The bottom line
#A Kenyan court paused execution of a money judgment against National Bank, requiring the disputed funds to be safely deposited while the appeal is decided.
What this practically means
#Executive summary
#Key legal issues
#Whether the Applicant satisfied the threshold for stay of execution pending appeal under Order 42 Rule 6 of the Civil Procedure Rules
The application was allowed; the court found the application filed expeditiously, that substantial loss was demonstrated because the Claimants could not refund the decretal sum, and security was offered via conditional deposit of the decretal sum.
The court applied the tripartite test under Order 42 Rule 6(2) and the principles in Butt v Rent Restriction Tribunal. Notices of Appeal were filed within days of judgment and the earlier stay application of 4 November 2019 had been pending, so there was no inordinate delay. The Claimants' inability to refund the decretal sum meant the appeal risked being nugatory. Security was addressed by ordering deposit of the decretal sums in a joint interest-earning account, with stay lapsing if the appeal was not filed within 60 days.
Legal principles established
#- Stay of execution pending appeal will be granted where the respondent has not demonstrated ability to refund the decretal sum should the appeal succeed, and the appeal would otherwise be rendered nugatory.
- The requirements for grant of stay of execution pending appeal are lack of inordinate delay, demonstration of substantial loss, and willingness to give security.
Court orders
#- 1.Stay of execution of the decree pending appeal granted on conditions
- 2.The Applicant to deposit the entire decretal sums together with costs in a joint interest earning account in a bank to be agreed upon in the joint names of Counsel for the Claimant and Counsel for the Respondent within 30 days
- 3.The intended Appeal to be filed within 60 days from the date of the ruling, failing which the Claimants/Respondents be at liberty to proceed with execution
- 4.Costs of the application to be in the appeal
- Jurisdiction invoked
- Rule 32(2) of the Employment and Labour Relations Court Act (2014), Sections 1A, 1B and 3A of the Civil Procedure Act and Order 42 Rule 6 of the Civil Procedure Rules, 2010
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Jimmy Mathew Labi & 2 others v National Bank of Kenya Limited [2020] KEELRC 481 (KLR)", Case Analysis (2020). Employment Cause No. 626 'B' of 2014, consolidated with Causes No. 1330 and 1331 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/481/eng@2020-09-18
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.