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ELRCDismissedApplication dated 26th January, 2021 (arising from ELRC Cause; Judgment delivered 21st September, 2018)

Kenya Long Distance Truck Drivers & Allied Workers Union v Malva Coach Builders Limited [2021] KEELRC 1493 (KLR)

Employment and Labour Relations Court
6 May 2021
1,396 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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A Kenyan employer lost its bid to pause a worker payout because it waited over three years after judgment to ask the court for a stay.

What this practically means

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Executive summary

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The respondent, Malva Coach Builders Limited, applied by notice dated 26th January 2021 under the ELRC (Procedure) Rules and various provisions of the Civil Procedure Act and Rules for stay of proceedings and stay of execution pending its appeal, Civil Appeal No.108 of 2020, against this court's judgment of 21st September 2018. That judgment had directed reinstatement of dismissed employees subject to availability of positions, or alternatively payment of terminal dues plus five months' salary as compensation, and execution of a CBA, but had not quantified the amounts. The claimant union had obtained, unopposed on 20th January 2021, an order for the deputy registrar to draw a decree for Ksh.4,059,934 based on its own computation. The respondent argued the decree was for an amount not awarded in the judgment, contrary to Orders 21 Rule 8 and 50 Rule 4, that execution was sought over a year after the decree without notice to show cause under Order 22 Rule 18, and that the pending appeal would be rendered nugatory. The claimant countered that no stay conditions were met and the respondent had delayed over three years. M. Mbaru J dismissed the application with costs, holding that stay applications must be brought promptly; the three-and-a-half-year delay, the respondent's failure to oppose the decree application, and the injustice that stay would visit on the claimant who had secured a decree meant the application lacked good foundation and the court would not review the unopposed order granting the decree.

Questions the Court framed

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

  1. 1.Whether stay of proceedings pending hearing of the pending appeal before the Court of Appeal should issue
  2. 2.Whether stay of execution pending determination of the pending appeal should issue
  3. 3.Whether the application was brought without inordinate delay
  4. 4.Whether the court should disturb the earlier order allowing the claimant's application dated 3rd December, 2020 for a decree

Key legal issues

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01

Delay in applying for stay of execution and proceedings

Holding

The application was dismissed as filed without good foundation after a delay of over 3 years and 6 months since judgment.

Reasoning

Judgment was delivered on 21st September 2018. The respondent never sought stay until January 2021. In the interim, the claimant's application of 3rd December 2020 seeking a decree of Ksh.4,059,934 was served on the respondent, went unopposed, and was allowed. Allowing stay at that stage would prejudice the claimant who had lawfully secured a decree. The court held that diligence and expedition are imperative in stay applications.

02

Whether the court could revisit the order allowing the claimant's application of 3rd December 2020

Holding

No; the order allowing that application for being unopposed could not be disturbed on the stay application.

Reasoning

The respondent was served with the 3rd December 2020 application and hearing notice for 20th January 2021 but neither attended nor filed a response, so the court allowed it unopposed. The court held there existed no reason to review that order, notwithstanding the respondent's complaints about non-compliance with Order 50 Rule 4 and Order 21 Rule 8 of the Civil Procedure Rules.

p. 2
03

Effect of pending appeal on execution

Holding

Although a pending appeal ordinarily justifies staying proceedings, it did not justify stay in this case given the delay and the respondent's inaction.

Reasoning

The court acknowledged that proceedings relating to subject matter before the Court of Appeal should ordinarily be allowed to stop pending determination, and that an appeal (Civil Appeal No.108 of 2020) existed with hearing directions issued. However, the respondent's three-year delay and failure to oppose the decree application meant the balance tilted against granting stay.

p. 2

Legal principles established

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  • Stay applications must be filed promptly and without inordinate delay for the applicant to secure their rights.
  • Stay of execution orders must be issued on good foundation and will not issue where delay would visit injustice on the decree-holder.

Court orders

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  1. 1.Application dated 26th January, 2021 dismissed with costs to the claimant

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
ELRC (Procedure) Rules Rules 33(1)(d), 17 and 28; Civil Procedure Act sections 3A, 75, 78, 79G; Civil Procedure Rules Orders 42 Rule 16(1), 50 Rule 4, 22 Rule 18, 21 Rule 8

Relief refused

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Stay of proceedings pending hearing and determination of the pending appeal

The application was made over 3 years after judgment, without inordinate delay excuse; the respondent had been served with and failed to oppose the earlier application, which was allowed.

p. 2

Stay of execution pending hearing and determination of the pending appeal

Delay of over 3 years and 6 months since judgment; issuing stay would visit injustice on the claimant who had secured a decree with the respondent's full knowledge.

p. 2

Costs

Application dismissed with costs to the claimant

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, application dated 26th January, 2021 is found without merit and is hereby dismissed with costs to the claimant.
p. 2Final orders - dismissal of the application
Stay of execution orders should be issued on good foundation.
p. 2Principles governing stay of execution
Diligence and expedited application is imperative.
p. 2Duty of expedition in stay applications
The delay apparent, to issue stay of execution at this stage would be to visit injustice upon the claimant who has since moved and secured a decree with the full knowledge of the respondent
p. 2Injustice to decree-holder from late stay application

Issues in the judgment

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minor

The judgment records the claimant's application for a decree as dated 3rd December, 2020 but the respondent's grounds state the claimant 'applied for on 3rd December, 2019', an internal date inconsistency.

minor

Statutory citations contain typographical errors: 'section 3!' for section 3A, 'Order 22 Rue 18(1)' for Order 22 Rule 18(1), and Rule 17 is rendered as '17 ad 28'.

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, "Kenya Long Distance Truck Drivers & Allied Workers Union v Malva Coach Builders Limited [2021] KEELRC 1493 (KLR)", Case Analysis (2021). Application dated 26th January, 2021 (arising from ELRC Cause; Judgment delivered 21st September, 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1493/eng@2021-05-06

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