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ELRCAllowedMilimani Civil Suit CMEL no E1058 of 2020 (appeal)· [2023] KEELRC 339 (KLR)

Radar Limited v Nicholas (Appeal E126 of 2022) [2023] KEELRC 339 (KLR)

Employment and Labour Relations Court
9 February 2023
3,298 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court at Nairobi, delivered by Dr Jacob Gakeri J on February 9, 2023, determined a Notice of Motion dated July 25, 2022 by the applicant/appellant, an employer held 100% liable and ordered to pay kshs 561,677/= in general damages to the respondent by Hon Senior Resident Magistrate A N Ogonda on March 31, 2022 in Milimani CMEL no E1058 of 2020. The applicant sought leave for new advocates to come on record, an interim stay of execution (warrants of attachment and a proclamation having issued), leave to appeal out of time, and a stay pending appeal. The respondent opposed, contending the application was unmerited, no reason for the delay was given, and no security was offered. Framing the singular issue as whether the application was merited, the court applied Order 42 rule 6 of the Civil Procedure Rules. It held that although the application was filed more than three months after judgment, the delay was not inordinate because it was occasioned by the applicant's former counsel, applying the principle that mistakes of counsel should not be visited upon the client. Despite the applicant's failure to explain the alleged irreparable loss, the court was persuaded the applicant may suffer substantial loss, guided by the need to ensure the appeal is not rendered nugatory. Noting the applicant's omission to address security, the court nonetheless accommodated the parties by ordering the decretal sum deposited in a joint interest-earning account of the advocates. The application was allowed: execution stayed pending appeal, leave to appeal out of time granted with 60 days to file, deposit within 45 days, the stay to lapse on default, and costs in the appeal.

Key legal issues

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01

Whether the application for stay of execution and leave to appeal out of time was made without unreasonable delay

Holding

The delay of just over 3 months was not inordinate, being attributed to the applicant's former counsel who failed to act on instructions.

Reasoning

The judgment was delivered on March 31, 2022 and the application was dated July 25, 2022. Following Amal Hauliers, the court found the delay not inordinate. The applicant attributed the delay to its then counsel who neglected instructions, and the court applied the principle that mistakes of counsel should not be visited upon the client, holding the application was filed without unreasonable delay under Order 42 rule 6(2)(a).

p. 5
02

Whether the applicant demonstrated substantial loss

Holding

The court was persuaded that the applicant may suffer substantial loss given the commenced execution and the need to ensure the appeal is not rendered nugatory.

Reasoning

Though the applicant failed to explain how irreparable loss would ensue, the court, guided by Charles Irungu and National Industrial Credit Bank v Wasike on rendering an intended appeal nugatory, was persuaded the applicant may suffer substantial loss. The respondent had also not indicated whether any payment would be recoverable if the appeal succeeded.

p. 5
03

Whether security for the due performance of the decree was offered

Holding

The applicant made no mention of security in its Supporting Affidavit, but the court accommodated the parties by ordering deposit of the decretal sum in a joint interest-earning account within 45 days.

Reasoning

Order 42 rule 6(2)(b) requires security as a basic requirement. The applicant made no mention of security in its Supporting Affidavit. However, the respondent reasonably did not seek release of the decretal sum but only its securing, and the court ordered deposit in a joint interest-earning account of the advocates, coupled with a default clause lapsing the stay.

p. 5
04

Whether leave to file the appeal out of time should be granted

Holding

Leave was granted; the appeal was to be filed within 60 days.

Reasoning

Rule 8 of the ELRC Procedure Rules requires an appeal within thirty days absent a specified period. Section 59 of the Interpretation and General Provisions Act and Order 50 Rule 5 confer discretion to enlarge time. Extension of time is an equitable remedy exercised judiciously; the court found the roughly 3-month delay not inordinate given the alleged inaction of former counsel and granted leave.

p. 6

Legal principles established

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  • Mistakes of counsel should not be visited upon the client in assessing whether an application was made without unreasonable delay.
  • The general principle in granting or refusing a stay is that, absent overwhelming hindrance, a stay must be granted so that an appeal is not rendered nugatory.

Court orders

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  1. 1.Execution of the judgment and decree delivered by Hon Senior Resident Magistrate A N Ogonda on March 31, 2022 in Milimani Civil Suit CMEL no E1058 of 2020 awarding the respondent kshs 561,677/= is stayed pending the hearing and determination of the appeal
  2. 2.The applicant is granted leave to file the appeal out of time and must do so within 60 days of the date hereof
  3. 3.The applicant shall deposit the decretal sum in a joint interest earning account in the name of the advocates on record within 45 days from the date hereof
  4. 4.In the event of default of filing the appeal or depositing the decretal sum or both, the stay of execution order shall lapse unless otherwise extended by the court
  5. 5.Costs shall be in the appeal

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 159(2)(a) and (d); Article 48
  • Civil Procedure ActSection 1B (Chapter 21, Laws of Kenya)
  • Civil Procedure Rules, 2010Order 42 rule 6; Order 50 rule 5; Order 21 rule 1
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rule 8
  • Interpretation and General Provisions ActSection 59
  • Employment ActSection 40

Cases cited (20)

  • Amal Hauliers Limited v Abdulnasir Abukar Hassan
    (2017) eKLR
  • Samuel Mwaura Muthumbi v Josephine Wanjiru Ngugi & another
    (2018) eKLR
  • Selestical Limited v Global Rock Development
    (2015) eKLR
  • Focin Motorcycle Co Ltd v Ann Wambui Wangui & another
    (2018) eKLR
  • Athuman Nusura Juma v Afwa Mohamed Ramadhan
    ca no 227 of 2015
  • Julius Kamau Kithaka v Waruguru Kithaka Nyaga & 2 others
    C A no 14 of 2013
  • Nicholas Kiptoo Arap Korir Salat v Independent Electoral and Boundaries Commission and 7 others
    (2014) eKLR
  • Board of Trustees National Social Security Fund v Caroline Wanjiru Karori
    (2020) eKLR
  • Victory Construction v BV (a minor suing through next friend PMM)
    (2019) eKLR
  • Kenya Shell Ltd v Benjamin Kibiru & another
    (1986)
  • James Wangalwa v Agnes Naliaka Cheseto
    (2012) eKLR
  • Andrew Okoko v Johnis Waweru Ngatia & another
    (2018) eKLR
  • Charles Irungu v Elizabeth Kalunda Wakano
    (2021) eKLR
  • Silverstein v Chesoni
    (2002) eKLR
  • Shell Ltd v Kabiru & another
    (1987) eKLR
  • National Industrial Credit Bank Ltd v Aquinas Francis Wasike & another
    (2006) eKLR
  • International Laboratory for Research on Animal Diseases v Kinyua
    (1990) KLR
  • Reliance Bank Ltd v Norlake Investments Ltd
    (2014) eKLR
  • Butt v Rent Restriction Tribunal
  • Joseph Odide Walome v David Mbadi Akello
    (2022) eKLR
On appeal from
Senior Resident Magistrate's Court (Milimani, Employment and Labour)
Milimani Civil Suit no CMEL no E1058 of 2020
Jurisdiction invoked
Order 42 rule 6 of the Civil Procedure Rules, 2010; Rule 8 of the Employment and Labour Relations Court (Procedure) Rules, 2016; section 59 of the Interpretation and General Provisions Act; Order 50 Rule 5 of the Civil Procedure Rules; Article 159(2)(a) and (d) of the Constitution

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, "Radar Limited v Nicholas (Appeal E126 of 2022) [2023] KEELRC 339 (KLR)", Case Analysis (2023). Milimani Civil Suit CMEL no E1058 of 2020 (appeal). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/339/eng@2023-02-09

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