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ELRCDismissedNot stated in the judgment extract· [2021] KEELRC 1406 (KLR)

Anastasia Ndileve Masoa v DM Enterprises Limited [2021] KEELRC 1406 (KLR)

Employment and Labour Relations Court
13 April 2021
972 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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DM Enterprises Limited, the respondent in a suit in which judgment had been entered against it on 14th May, 2019, filed a notice of motion dated 22nd February, 2021 seeking stay of execution of the decree and leave to liquidate the decretal sum in 8 equal instalments. It argued that its former advocates had failed to inform it of the judgment and it only became aware when auctioneers proclaimed its assets; that two attached vehicles did not belong to it, being charged to I & M Bank and Prime Bank; and that attachment of business assets would cause irreparable loss. It expressed no intention to appeal. The claimant, through the replying affidavit of Isaiah Kubai, opposed the application, contending the respondent was served throughout the proceedings, that the application was an abuse of process aimed at denying the claimant the fruits of judgment, and that the instalment offer was insincere since a cheque of Ksh.40,000 had been forwarded on 5th March, 2021, translating to 16 instalments rather than the proposed 8. The court applied Order 21 rule 12 of the Civil Procedure Rules, setting out three conditions: sufficient reason, good faith with reasonable instalments, and bona fides in arranging fair payments. It held that ignorance of the judgment by former advocates, with no intended appeal, was not sufficient reason to stall execution of a valid judgment, and that the offer was not bona fide given the decretal sum of Ksh.503,686 before taxation. The application was dismissed with costs to the claimant.

Key legal issues

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01

Whether the respondent established sufficient reason for stay of execution and payment in instalments

Holding

The application failed the three conditions for instalment payments; not being informed of the judgment by former advocates and not wishing to appeal is not sufficient reason to stall execution of a valid judgment.

Reasoning

The court set out three conditions from Order 21 rule 12: sufficient reason, good faith and reasonable instalments, and bona fides in arranging fair payments. The respondent gave no details justifying 8 instalments, made no actual payment matching the offer, and was aware of the judgment when delivered. The claimant was entitled to enjoy the fruits of a valid judgment.

p. 2
02

Whether the instalment offer was made in good faith and bona fides

Holding

The offer was not bona fide; the respondent had only paid Ksh.40,000, translating to 16 instalments rather than the proposed 8, amounting to an abuse of the orders sought and of court process.

Reasoning

The decretal sum before taxation was Ksh.503,686, meaning 8 instalments would be about Ksh.62,960.75 each, higher with costs. The cheque of Ksh.40,000 contradicted the offer, showing the proposal was insincere. The claimant also pointed to the absence of financial statements demonstrating inability to pay the whole sum at once.

p. 2

Legal principles established

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  • Payment of decretal sums in instalments is discretionary and requires the applicant to show sufficient reason, good faith with reasonable instalments, and bona fides by arranging fair payments.

Court orders

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  1. 1.Application dated 22nd February, 2021 dismissed
  2. 2.Costs of the application awarded to the claimant
Jurisdiction invoked
Original Employment and Labour Relations Court jurisdiction over post-judgment stay of execution; Order 21 rule 12 Civil Procedure Rules

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, "Anastasia Ndileve Masoa v DM Enterprises Limited [2021] KEELRC 1406 (KLR)", Case Analysis (2021). Not stated in the judgment extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1406/eng@2021-04-13

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