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ELRCPartially AllowedNot stated in the judgment· [2021] KEELRC 1763 (KLR)

Mutua Mulonzya v Fellowship of Christian Councils & Churches in the Great Lakes and Horn of Africa [2021] KEELRC 1763 (KLR)

Employment and Labour Relations Court
6 May 2021
2,909 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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This is a ruling of the Employment and Labour Relations Court at Nairobi delivered by Onesmus N. Makau J on 6 May 2021 on a Notice of Motion dated 21 October 2020 in which the Applicant, a faith-based donor-driven organisation, sought a stay of execution of a judgment and decree of 14 May 2020 by which Abuodha J awarded the Respondent Kshs. 1,840,482 as salary in lieu of notice and compensation for unfair termination. The Applicant argued it would suffer substantial loss because warrants of attachment had been sought and the Respondent was a man of unknown means, and it offered security by depositing the decretal sum in a joint interest-earning account. The Respondent opposed, showing he was employed by the County Government of Makueni on permanent and pensionable terms earning Kshs. 221,310 monthly, and proposed that half the decretal sum be released to him and half deposited in a joint interest-earning account, relying on Catherine Wambui Karuno v Trocaire. The court framed the threshold under Order 42 rule 6(2) of the Civil Procedure Rules. It held the five-month delay excusable since costs were unascertained; applying National Industrial Credit Bank v Wasike and ABN Amro v Lemond Foods it placed the legal burden on the applicant but shifted the evidential burden to the respondent, who discharged it. The court found the respondent a person of means, held the applicant failed to demonstrate substantial loss, and noted no appeal had been shown to have been filed. Though the threshold was not met, the court granted conditional stay: half the decretal sum to the Respondent within 30 days, half deposited in a joint interest-earning account, vacation of stay if no appeal was filed, automatic lapse if conditions were unmet, and costs of the application to the Respondent.

Key legal issues

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01

Delay in filing the stay application

Holding

Delay of about 5 months was excusable because costs had not been determined and execution could not issue before taxation of costs.

Reasoning

Although the application was filed on 22.10.2020, five months after judgment, costs had not been determined when it was filed, so execution could not have proceeded immediately. Following Eldoret Grains Limited v National Cereals Produce Board, the court held the delay was excusable.

p. 3
02

Substantial loss and refundability

Holding

The respondent, a public officer on permanent and pensionable terms earning Kshs. 221,310 monthly, is not a man of straw; the applicant failed to show substantial loss.

Reasoning

The legal burden lay on the applicant to show the decree-holder could not refund; once raised, the evidential burden shifted to the respondent, who discharged it by showing gainful permanent and pensionable employment. The applicant's own donor-driven status did not demonstrate substantial loss, and no appeal had been shown to exist that could be rendered nugatory.

p. 4
03

Purpose of stay and existence of an appeal

Holding

Stay protects the appellant's right to a fair hearing so the appeal is not rendered nugatory; the applicant had not shown it filed the intended appeal, so no appeal capable of being rendered nugatory was demonstrated.

Reasoning

The court noted that typed proceedings were availed on 1.10.2020 but the applicant did not demonstrate that an appeal had since been filed. The right of appeal may have lapsed by operation of law, meaning there was no live appeal to protect.

p. 4
04

Security and conditional stay

Holding

Since the respondent offered to have half the decretal sum paid to him and half deposited in a joint interest-earning account, the court granted conditional stay on those terms.

Reasoning

Although the threshold for stay was not met, the court exercised its discretion to balance the interests of the parties by adopting the respondent's own proposal as conditions, with the stay lapsing or being vacated if the appeal was not filed or conditions not met.

p. 4

Legal principles established

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  • The legal burden of proving that the decree-holder is a man of straw lies on the applicant, but once the applicant alleges the respondent cannot repay the decretal sum, the evidential burden shifts to the respondent to show his resources.
  • Substantial loss is the cornerstone for granting stay of execution.

Court orders

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  1. 1.Stay of execution pending appeal granted on condition that a half of the decretal sum be paid to the claimant/respondent within 30 days of the Ruling
  2. 2.The remaining half of the decretal sum be deposited in an interest earning account to be opened jointly by the Advocates on record within 30 days
  3. 3.The stay order shall stand vacated if the intended appeal has not been filed
  4. 4.Subject to (c), the stay will lapse automatically after 30 days if the applicant fails to meet both conditions (a) and (b)
  5. 5.The respondent is granted costs of the application

Authorities

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Legislation

  • Civil Procedure RulesOrder 42 Rule 6(2)
  • Evidence Actsections 107 and 109
  • ELRC Procedure RulesRule 28(3)

Cases cited (12)

  • Heifer Project International v Forest City Export Services Limited & another
    [2017] eKLR
  • James Wangalwa & ano v Agnes Naliaka Cheseto
    [2012] eKLR
  • Kapa Oil Refineries Limited v Harrison Kimotho Kamau & another
    [2018] eKLR
  • John Muriithi & 8 Others v Registered Trustees of the Sisters of Mercy (Kenya) t/a "the Mater Misericordia Hospital"
    [2020] eKLR
  • Francis Mutuku Wambua v Nairobi Women's Hospital
    [2019] eKLR
  • Catherine Wambui Karuno v Trocaire
    [2016] eKLR
  • Wilberforce Ojiambo Oundo v Regent Management
    Cause No. 200 of 2011
  • Consolidated Bank of Kenya Ltd v Ken Muriuki & Peter Kirimi Mbogo T/A Mbogo Muriuki Advocates
    Meru Civil Appeal No. 154 of 2019
  • Eldoret Grains Limited vs. National Cereals Produce Board
    [2014] eKLR
  • National Industrial Credit Bank Limited – V- Aquinas Francis Wasike and Another
    [2006] e KLR
  • ABN Amro Bank N v Lemond Foods Limited
    Civil Application No.15 of 2002
  • Kenya shell limited v Benjamin Karuga & Another
    [1986] e KLR
Jurisdiction invoked
Order 42 Rule 6(2) of the Civil Procedure Rules (ELRC Procedure Rules also referenced re delivery)

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, "Mutua Mulonzya v Fellowship of Christian Councils & Churches in the Great Lakes and Horn of Africa [2021] KEELRC 1763 (KLR)", Case Analysis (2021). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1763/eng@2021-05-06

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