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ELRCPartially AllowedApplication dated 1st February 2021 (ELRC, Nairobi)· [2021] KEELRC 1411 (KLR)

Hellen Waseka v Middle East Bank Kenya Limited [2021] KEELRC 1411 (KLR)

Employment and Labour Relations Court
23 March 2021
1,982 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court cancelled bank attachment warrants obtained in breach of an existing stay order, confirming the bank's compliance with stay conditions and extending protection pending appeals.

What this practically means

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Executive summary

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Middle East Bank Kenya Limited, the respondent in an employment dispute, applied under Order 22 Rule 18 of the Civil Procedure Rules and Rule 32 of the Employment and Labour Relations Court (Procedure) Rules, 2016 seeking to set aside warrants of attachment issued on 28th January 2021, affirmance of stay orders granted on 30th April 2019, and in the alternative a fresh stay pending its appeals (Nairobi Civil Appeal No.36 of 2019 and Civil Appeal No.E236 of 2020). The claimant opposed, arguing the stay lapsed because the respondent deposited the decretal sum into an account at its own bank, creating a conflict of interest, and outside the 60-day period. The court held the stay conditions required only a deposit in an interest-earning account in the joint names of counsel on record within 60 days; the deposit of Ksh.12,180,000 was made on 27th June 2019 within 58 days, and no condition specified the bank. The court further held that execution more than one year after the decree (dated 22nd January 2019) required a notice to show cause under Order 22 Rule 18, which was not issued. The warrants of attachment were therefore irregular, null and void ab initio. The stay orders of 30th April 2019 were affirmed and extended to cover both pending appeals, and costs were awarded to the respondent bank. Judgment delivered by M. Mbaru, Judge, on 23rd March 2021 at Nairobi.

Key legal issues

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01

Compliance with conditions of stay of execution granted on 30th April 2019

Holding

The respondent substantially complied by depositing the decretal sum of Ksh.12,180,000 into an interest-earning account in the joint names of counsel within 58 days; the claimant's objection as to which bank the account was opened in was an extraneous matter outside the court's order

Reasoning

The stay order required deposit of the decretal sum in an interest-earning account in the joint names of counsel on record within 60 days. The deposit was made on 27th June 2019, within 58 days. The court found no condition specified which bank the account was to be opened at; any conflict-of-interest concern should have been raised before or immediately after the ruling, not used to defeat compliance.

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02

Procedural regularity of the warrants of attachment under Order 22 Rule 18 and Rule 32 ELRC Procedure Rules

Holding

The warrants of attachment were irregular, null and void ab initio because the claimant failed to issue a notice to show cause as required where execution is sought more than one year after the decree

Reasoning

The decree was issued on 22nd January 2019 and execution by attachment was levied in January 2021, more than one year later. Order 22 Rule 18, read with Rule 32 of the ELRC (Procedure) Rules, 2016, required a notice to show cause before execution. This procedure was not invoked, and execution also ran contrary to the subsisting stay orders.

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03

Continuation in force of the stay orders of 30th April 2019

Holding

The stay orders of 30th April 2019 remain valid and in force pending hearing and determination of the appeals, and were extended for good measure to cover Civil Appeal No.E236 of 2020

Reasoning

The conditions attached to the stay had been satisfied and no appeal was contested. To allow execution would negate the very orders granting stay and destroy the substratum of the appeals. The court extended the stay to cover both pending appeals to ensure full determination of all matters before the Court of Appeal.

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Legal principles established

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  • Where an application for execution is made more than one year after the date of the decree, the court must first issue a notice to show cause under Order 22 Rule 18 before issuing warrants of attachment
  • Warrants of attachment obtained in breach of subsisting stay orders and without compliance with Order 22 Rule 18 are irregular, null and void ab initio

Court orders

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  1. 1.Warrants of Attachment issued on 28th January, 2021 declared irregular, null and void
  2. 2.Orders of 30th April 2019 to remain in force pending hearing and determination of Civil Appeal No.36 of 2019 and Civil Appeal No.E236 of 2020
  3. 3.The claimant shall pay costs of the application

Authorities

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Legislation

  • Civil Procedure RulesOrder 22 Rule 18
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rule 32

Cases cited (1)

  • Santowels Limited v Stanbic Bank Kenya Ltd
    [2020] eKLR
Jurisdiction invoked
Order 22 Rule 18 of the Civil Procedure Rules and Rule 32 of the Employment and Labour Relations Court (Procedure) Rules, 2016

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, "Hellen Waseka v Middle East Bank Kenya Limited [2021] KEELRC 1411 (KLR)", Case Analysis (2021). Application dated 1st February 2021 (ELRC, Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1411/eng@2021-03-23

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