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ELRCAllowedApplication dated 16th September, 2021 (arising from Nairobi Milimani CMEL No. 538 of 2018)

Safetract Limited v Godfrey Ochieng Omondi [2021] KEELRC 13 (KLR)

Employment and Labour Relations Court
9 December 2021
1,354 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Employment Court paused enforcement of a Ksh.454,770 judgment, but only because the losing employer agreed to deposit the full amount in a joint account.

What this practically means

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Executive summary

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The appellant (applicant) filed an application dated 16th September, 2021 seeking stay of execution of the judgment and decree delivered on 24th August, 2021 in Nairobi Milimani CMEL No.538 of 2018, in which the respondent was awarded Ksh.454,667 with interest and costs on an amended counterclaim for unlawful and constructive dismissal, while the appellant's own claim was dismissed. The application was supported by the affidavit of Esther Wainaina, CEO of the appellant, who argued that the trial court found no proof of constructive dismissal yet entered judgment for the respondent, that the appeal was arguable, and that the respondent would be unable to refund the decretal sum having no known income. The respondent, through Faith Mutio Mutuku Advocate, opposed, noting a contradiction in the judgment which the trial court had directed be amended, that the appeal was frivolous, that the respondent was a person of means with land in Ugenya and new employment, and alternatively sought payment of half the decretal sum into a joint interest-earning account. The court, addressing whether the Order 42 Rule 6 conditions were met, found the draft memorandum of appeal raised grounds warranting merits determination; the respondent's contrary evidence of means was inadequately supported (the valuation report was a cover page only and the alleged new employment was without evidence). The court also flagged that the post-judgment correction of the constructive dismissal error was not properly on record, noting amendments should abide section 16 of the ELRC Act and Rules 33 and 34. The court allowed a conditional stay requiring deposit of the entire decretal sum in a joint interest-earning account within 30 days, with each party bearing own costs.

Questions the Court framed

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

  1. 1.Whether the appellant should be allowed stay of execution of the judgement delivered on 24th August, 2021 in Nairobi Milimani CMEL No.538 of 2018
  2. 2.If so, whether the conditions for stay of execution have been met

Key legal issues

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01

Whether the conditions for stay of execution under Order 42 Rule 6 were met

Holding

The court found the conditions satisfied and granted a conditional stay, requiring the entire decretal sum be deposited in a joint interest-earning account within 30 days.

Reasoning

The court noted the draft memorandum of appeal raised grounds warranting merits determination, hence an arguable appeal. On substantial loss, the appellant asserted the respondent had no known income to refund the decretum if the appeal succeeded; the respondent's contrary evidence (land in Ugenya, new employment) was inadequately evidenced - the valuation report was only a cover page and the new employment was without evidence. The application was filed without unreasonable delay. The court therefore allowed stay conditional on security.

p. 2
02

Whether the trial court's post-judgment correction of the error on constructive dismissal was properly done

Holding

The record of the post-judgment proceedings was missing, and any amendment to the judgment should have followed section 16 of the ELRC Act and Rule 33, or Rule 34 for clerical mistakes; the process followed was unclear and irregular.

Reasoning

Both parties acknowledged the judgment contained an error regarding constructive dismissal. The respondent sought a mention and the trial court directed amendment, but the proceedings evidencing this were not on record. The court held that amendments must abide Rule 33 and clerical corrections under Rule 34 require notification of parties; the missing record meant it was not clear how the trial court made changes to the judgment of 24th August, 2021.

p. 2

Legal principles established

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  • An applicant for stay of execution must demonstrate substantial loss, file the application without unreasonable delay, and provide security for the due performance of the decree.
  • Amendments to a judgment in employment matters must abide section 16 of the Employment and Labour Relations Court Act, 2011 read with Rule 33 of the ELRC (Procedure) Rules, 2016; clerical mistakes are rectifiable under Rule 34 with notice to the parties.

Court orders

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  1. 1.Stay of execution of the judgement and decree delivered on 24th August, 2021 in Nairobi Milimani CMEL No.538 of 2018 is allowed, conditional on the entire decretal sum of Ksh.454,770 being deposited in an interest earning account held in the joint names of the advocates for the parties, secured within the next 30 days
  2. 2.Each party shall bear own costs

The bench

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

majority

Wrote the judgment

On appeal from
Nairobi Milimani Commercial Court (magistrates' court, employment cause)
CMEL No.538 of 2018
Jurisdiction invoked
Order 42 Rule 6 of the Civil Procedure Rules (application for stay of execution pending appeal)

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, stay of execution is hereby allowed on condition that the entire decretal sum of Ksh.454, 770 is deposited in an interest earning account held in the joint names of the advocates for the parties herein and secured within the next 30 days. Each party shall bear own costs.
p. 2Final orders - conditional stay of execution granted
The court finds the conditions for grant of stay of execution of the judgement and decree of the trial court in Nairobi CMEL No.538 of 2018 delivered on 24th August, 2021 have been met and application dated 16th October, 2021 is with merit.
p. 2Conditions for stay of execution met
Any amendment to the judgement should abide the provisions of section 16 of the Employment and Labour Relations Court Act, 2011 read together with Rule 33 of the Employment and Labour Relations Court (Procedure) Rules, 2016.
p. 2Amendment of judgments in employment matters

Issues in the judgment

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minor

The application date is inconsistently stated as 16th September 2021 at the start but 16th October 2021 in the findings

minor

The decretal sum is inconsistently stated as Ksh.454,667 in the narrative but Ksh.454,770 in the final orders

material

The record of the post-judgment proceedings correcting the judgment error is missing from the record

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, "Safetract Limited v Godfrey Ochieng Omondi [2021] KEELRC 13 (KLR)", Case Analysis (2021). Application dated 16th September, 2021 (arising from Nairobi Milimani CMEL No. 538 of 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/13/eng@2021-12-09

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