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ELRCPartially AllowedNot stated in excerpt· [2021] KEELRC 2406 (KLR)

Kenya Flourspar Limited v Moses Segite [2021] KEELRC 2406 (KLR)

Employment and Labour Relations Court
1 December 2021
JAJ. N. ABUODHA
1,393 words in judgment
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The bottom line

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An Eldoret employment court ruled that interest on an award stays attached to the reduced decretal sum even after appeals, and released the escrow funds.

What this practically means

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Executive summary

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This ruling by the Employment and Labour Relations Court at Eldoret (J. N. Abuodha, J) determined a Notice of Motion dated 25th March 2021 by which the appellant sought release of Kshs. 303,917/= held in a joint escrow account (No TD-300-0010125 at Housing Finance Company of Kenya) opened as a condition for stay of execution pending appeal. The decretal sum of Kshs. 967,836.05 awarded by the trial court had been revised on first appeal to severance pay of Kshs. 285,180/=, and the Court of Appeal on 29th January 2021 upheld the revised award. The applicant sought release of the balance to both firms and closure of the account. The only contested issue was whether interest should be paid on the decretal sum. The appellant, relying on section 29(3) of the Employment and Labour Relations Court Act and John Osewe v Ragbir Singh Sadhu, argued interest was discretionary, the issue had not been raised on appeal, and the court was functus officio and the matter res judicata. The respondent, relying on Kenya Power and Lighting Co Ltd v Andy International, submitted interest had been awarded with the principal by the trial court and was never appealed against. The court held interest attaches to the decretal sum and, the issue never having been canvassed in the two appellate courts, awarded interest on Kshs. 285,180/= at court rates from the date of the trial court's judgment. The motion was allowed as prayed, with each party bearing its own costs.

Key legal issues

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01

Whether the respondent was entitled to interest on the revised decretal sum

Holding

Yes. The interest awarded by the trial court attached to the decretal sum; although the decretal sum was revised on first appeal and upheld on second appeal, the issue of interest was never canvassed before the appellate courts, so interest remained attached to the revised award of Kshs. 285,180/=.

Reasoning

The trial court awarded Kshs. 967,836.05 with interest. The first appeal partially allowed and revised the award to Kshs. 285,180/= without mentioning interest; the Court of Appeal upheld the revised award without the issue being raised. Following KPLC v Andy International, the court held interest remained attached to the decretal sum, awarding interest at court rates from the date of the trial court's judgment.

p. 2

Legal principles established

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  • Interest awarded by a trial court attaches to the decretal sum and survives partial setting aside of the award on appeal where the issue of interest was never canvassed on appeal.

Court orders

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  1. 1.The Motion dated 25th March, 2021 allowed as prayed
  2. 2.Kshs. 303,917/= held in joint account No TD-300-0010125 released to the firm of Kalya & Company Advocates
  3. 3.Kshs. 285,180/= and costs of Kshs. 36,340/= less Kshs. 17,603.25/= released to the Respondent's Counsel (Nyaundi Tuiyott & Company Advocates), with interest on the decretal sum of Kshs. 285,180/= at Court rates from the date of the trial court's judgment
  4. 4.Statement of account issued and the joint account closed
  5. 5.Each party to bear their own costs of the application

Authorities

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Legislation

  • Employment and Labour Relations Court Actsection 29(3)
  • Civil Procedure Actsection 27(1)

Cases cited (2)

  • John Osewe and 46 Others v. Ragbir Singh Sadhu
    Kisumu ELRC No 16 of 2013
  • Kenya Power and Lighting Company Limited v. Andy International
    (2021) eKLR
On appeal from
Court of Appeal
Jurisdiction invoked
Employment and Labour Relations Court Act, section 29(3); Civil Procedure Act, section 27(1)

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 Flourspar Limited v Moses Segite [2021] KEELRC 2406 (KLR)", Case Analysis (2021). Not stated in excerpt. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/2406/eng@2021-12-01

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