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ELRCAllowedNakuru CMC ELRC 348 of 2019 (appeal therein)· [2022] KEELRC 1638 (KLR)

Victonel Academy v Njuguna (Employment and Labour Relations Appeal E013 of 2021) [2022] KEELRC 1638 (KLR)

Employment and Labour Relations Court
9 June 2022
1,777 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~7 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court paused collection of a Kshs 675,243 award, letting the employer appeal—provided it first deposits the full amount in a joint interest-earning account within 60 days.

What this practically means

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Executive summary

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The appellant/applicant moved the Employment and Labour Relations Court at Nakuru by notice of motion dated December 15, 2021, seeking stay of execution of the judgment of Honourable L Arika (CM) in Nakuru CMC ELRC 348 of 2019 delivered on November 22, 2021, awarding the claimant/respondent Kshs 675,243.80, pending hearing and determination of the appeal already filed. The application was supported by the affidavit of John Waweru Wanyoike, the applicant's human resource manager, and contended that the 30-day stay granted at judgment had lapsed, exposing the applicant to execution, and that the appeal, raising triable issues, would be rendered nugatory. The respondent opposed, arguing the application was scandalous, vexatious, an abuse of process, filed after the lapse of the initial stay, and that none of the conditions in Order 42 Rule 6 of the Civil Procedure Rules had been met; he offered to refund the decretal sum if the appeal succeeded and proposed a split deposit arrangement. Parties filed written submissions, the applicant relying on Mukuma v Abuoga, Consolidated Marine v Nampijja and National Industrial Credit Bank v Wasike, and the respondent relying on Republic v Commissioner for Investigations and Enforcement Ex parte Wananchi Group Kenya Ltd. Wasilwa J found the application filed timeously, that the appeal may be rendered nugatory without stay, and allowed the stay on condition that the applicant deposits the entire decretal sum in a joint interest-earning account in the joint names of counsel on record within 60 days, in default of which execution may proceed. Costs were ordered to abide the outcome of the appeal. Ruling delivered virtually on June 9, 2022.

Key legal issues

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Whether the applicant satisfied the conditions for stay of execution under Order 42 Rule 6(2) of the Civil Procedure Rules

Holding

The application was filed timeously, the appeal may be rendered nugatory if stay is not granted, and the applicant offered security by way of deposit of the decretal sum; the application was therefore merited and allowed on conditions.

Reasoning

The court applied Order 42 Rule 6(2), which requires substantial loss, absence of unreasonable delay, and security for due performance of the decree. Judgment was delivered on November 22, 2021 and the application filed on December 15, 2021, which the court found timeous. The court accepted that execution would render the pending appeal nugatory. The applicant offered to abide by conditions, and the court conditioned the stay on deposit of the entire decretal sum in a joint interest-earning account within 60 days, failing which execution may proceed.

p. 4

Legal principles established

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  • An application for stay of execution filed within a month of judgment is made without unreasonable delay and is timeous.

Court orders

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  1. 1.Stay of execution of the Magistrates Court's judgment dated November 22, 2021 and all consequential orders granted pending hearing and determination of the appeal
  2. 2.Stay granted on condition that the applicant deposits the entire decretal sum in a joint interest earning account held in the joint names of counsels on record within 60 days, in default execution may proceed
  3. 3.Costs to abide the outcome of the appeal

Authorities

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Legislation

  • Employment and Labour Relations Court Procedure Rulesrules 3, 8 & 17
  • Civil Procedure RulesOrder 42 Rule 6(1) and (2)

Cases cited (4)

  • Mukuma v Abuoga
    [1988] KLR 645
  • Consolidated Marine v Nampijja and another
    Civil Appeal No 93 of 1989 (Nairobi)
  • National Industrial Credit Bank Limited v Aquinas Francis Wasike and another
    [2006] eKLR
  • Republic v Commissioner For Investigations and Enforcement Ex parte Wananchi Group Kenya Limited
    [2014] eKLR
On appeal from
Magistrates Court (Nakuru CMC)
Nakuru CMC ELRC 348 of 2019
Jurisdiction invoked
Rule 3, 8 & 17 of the Employment and Labour Relations Court Procedure Rules; Order 42 Rule 6 of the Civil Procedure Rules

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, "Victonel Academy v Njuguna (Employment and Labour Relations Appeal E013 of 2021) [2022] KEELRC 1638 (KLR)", Case Analysis (2022). Nakuru CMC ELRC 348 of 2019 (appeal therein). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1638/eng@2022-06-09

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