John Wanjohi Wakahora v Linksoft Communications Systems Limited [2022] KEELRC 790 (KLR)
The bottom line
#A Kenyan employment court allowed an employer to pay a judgment debt in monthly instalments, but raised the amount and warned that any missed payment triggers full execution.
What this practically means
#Executive summary
#Key legal issues
#Whether sufficient cause was shown for payment of the decree by instalments under Order 21 Rule 12
Sufficient cause was shown: the applicant pleaded and evidenced cash-flow problems, had requested instalments as early as 24th February 2020, and had demonstrated bona fides by paying the proposed instalments before the orders were granted
The court found the decree holder was aware of the respondent's financial difficulties, which were documented in audited accounts for 2019 and draft audited accounts for 2020 that were not contested. The judgment debtor had started making payments even before orders were granted. The court balanced this goodwill against the legitimate expectations of the decree holder holding a valid decree, and granted instalments but at a higher rate than proposed.
Whether the warrants of attachment and sale should be stayed and the attachment lifted
The warrants and decree were suspended on conditions: payment by monthly instalments of Kshs.500,000, payment of accrued instalments by 1st March 2022, and payment of auctioneer's fees; default would automatically lift the suspension
The court exercised its discretion under Order 21 Rule 12 to suspend execution so long as the judgment debtor honoured the instalment arrangement, protecting the decree holder's right to the fruits of judgment through a default clause permitting execution for the entire outstanding sum.
Legal principles established
#- A court may, under Order 21 Rule 12, on sufficient cause shown and even without the decree holder's consent, order payment of a money decree by instalments on such terms as it thinks fit.
- A judgment debtor who demonstrates goodwill and bona fides by starting to pay the proposed instalments before orders are granted, and who shows genuine cash-flow constraints, has shown sufficient cause for payment by instalments.
Court orders
#- 1.The decree and warrants issued to Messrs BEMAC AUCTIONEERS for execution of the decretal sum are suspended
- 2.The Judgment Debtor to pay the decretal sum in instalments of Kshs.500,000/- per month with effect from 1st March 2022
- 3.All instalments due from 3rd August 2021 to be made on or before 1st March 2022
- 4.The Judgment Debtor to pay Auctioneer's fees for proclamation to be agreed or as taxed by the Taxing Master if not agreed
- 5.In default of any one instalment or condition, the suspension of the warrants shall be automatically lifted and the Decree Holder at liberty to execute for the entire decretal sum outstanding together with costs and interest
- 6.The Judgment Debtor to bear the costs of the application
- Jurisdiction invoked
- Sections 1A, 1B and 31 of the Civil Procedure Act and Order 21 Rule 12(3), Order 51 Rule 1 of the Civil Procedure Rules 2010
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "John Wanjohi Wakahora v Linksoft Communications Systems Limited [2022] KEELRC 790 (KLR)", Case Analysis (2022). not stated in the judgment extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/790/eng@2022-02-15
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.