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ELRCDismissedNot stated in judgment· [2021] KEELRC 1190 (KLR)

Hassan Andale v National Bank of Kenya [2021] KEELRC 1190 (KLR)

Employment and Labour Relations Court
23 July 2021
2,192 words in judgment
View original judgmentRead on Kenya Law Watch case
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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 July 2020 by the Respondent/Applicant, a financial institution, seeking a temporary injunction and stay of execution of a judgment delivered on 18th December 2018, pending an intended appeal against a ruling dated 14th June 2019 dismissing its application for review. The application was anchored on Sections 3 and 12(3)(i) and (viii) of the Employment Act, Rule 17 of the ELRC (Procedures) Rules 2016 and Order 42 Rule 6 of the Civil Procedure Rules. The Claimant/Decree Holder opposed the application, contending it was an afterthought brought after inordinate delay, that no appeal lay against the judgment, and that the Applicant had paid nothing towards the decretal sum. He acknowledged an arithmetical error on the decree, undertaking to recover only Kshs.1,784,264.82. The court framed a single issue: whether the Applicant met the threshold for stay. It found the delay from 14th June 2019 to 14th July 2020 inordinate and unexplained, prompted only by the proclamation of the Applicant's assets on 9th July 2020. Applying Ken-Knit (K) Ltd v Ezekiel Ombasa Ombui, the court held that failure to consider submissions is not an error on the face of the record justifying review, and the decree holder should not be denied the fruits of his judgment. Noting the admitted error on the decree, the court ordered payment of the admitted sum of Kshs.1,727,743.20 pending correction of the decree, dismissed the application, and awarded costs and auctioneer's fees to the Claimant/Decree Holder.

Key legal issues

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01

Whether the Applicant satisfied the conditions for stay of execution under Order 42 Rule 6(2) of the Civil Procedure Rules

Holding

The Applicant failed to satisfy the conditions: the application was brought after inordinate and unexplained delay, and the decree holder should not be denied the fruits of his judgment

Reasoning

The court applied the three conditions in Order 42 Rule 6(2): absence of inordinate delay, demonstration of substantial loss and offer of security. Judgment was delivered on 18th December 2018, the review ruling on 14th June 2019, but the stay application was only filed on 14th July 2020 after proclamation of the applicant's assets, prompted by execution rather than the intention to appeal. The delay was inordinate and unexplained, and the intended appeal, being only against dismissal of review on the ground that submissions were not considered, was not shown to be arguable.

p. 3
02

Whether the alleged failure to consider the Applicant's submissions was a ground for review and a basis for stay

Holding

No - submissions are not evidence and their non-consideration is not an error on the face of the record; the judgment itself was not contested

Reasoning

The Applicant's review application was premised on the court not considering its submissions, which were not on record at the time of the judgment. Relying on Ken-Knit (K) Ltd v Ezekiel Ombasa Ombui, the court held that submissions are a summary of evidence and facts but not evidence themselves, and failure to consider them cannot of itself constitute a mistake or error on the face of the record. Since the judgment was arrived at after consideration of the evidence and law on record, the decree holder should not be denied the fruits of the judgment.

p. 4
03

Whether the error apparent on the decree justified the relief sought

Holding

The admitted error on the decree could be corrected by the parties or the Deputy Registrar, and pending correction the Applicant was ordered to pay the admitted decretal sum of Kshs.1,727,743.20

Reasoning

The court noted that although the stay application failed, there was an admitted arithmetical error on the decree. The Claimant/Decree Holder had conceded that Kshs.1,727,743.20 was what was due. The court held the error could be corrected by the parties or the Deputy Registrar and, balancing the parties' positions, ordered payment of the admitted amount pending correction, with auctioneer's fees to be agreed or taxed on the corrected decretal sum.

p. 4

Legal principles established

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  • An application for stay of execution must be brought without inordinate delay and the delay must be explained or justified
  • The failure by a court to consider submissions, whether or not on record, does not of itself constitute a mistake or error on the face of the record for purposes of review

Court orders

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  1. 1.Application dismissed
  2. 2.The Applicant to pay the Decree Holder Kshs.1,727,743.20 pending correction of the decree
  3. 3.The Applicant to pay the Claimant/Decree Holder's costs of the application
  4. 4.The Applicant to pay Auctioneer's fees to be agreed or taxed based on the corrected decretal sum

Authorities

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Legislation

  • Employment ActSections 3, 12(3)(i) and 12(3)(viii)
  • Employment and Labour Relations Court (Procedures) Rules 2016Rule 17
  • Civil Procedure Rules, 2010Order 42 Rule 6(1) and (2); Order 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d); Article 48

Cases cited (4)

  • Tropical Commodities Suppliers Ltd & Ors v International Credit Bank Ltd (In Liquidation)
    Misc. App. No. 379 of 2003
  • National Bank of Kenya Ltd v Alfred Owino Bala
    [2015] eKLR
  • Suleiman Sumra & Another v Said Mohammed Said
    (2018) eKLR
  • Ken-Knit (K) Ltd v Ezekiel Ombasa Ombui
    [2015] eKLR
Jurisdiction invoked
Sections 3, 12(3)(i) and (viii) of the Employment Act, Rule 17 of the Employment and Labour Relations Court (Procedures) Rules 2016 and Order 42 Rule 6 of the Civil Procedure Rules, 2010

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, "Hassan Andale v National Bank of Kenya [2021] KEELRC 1190 (KLR)", Case Analysis (2021). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1190/eng@2021-07-23

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