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ELRCPartially AllowedNot stated in the judgment· [2023] KEELRC 1739 (KLR)

Kenya Hotel & Allied Workers Union v Hotel Rastopark (Cause 15 of 2019) [2023] KEELRC 1739 (KLR)

Employment and Labour Relations Court
14 July 2023
2,226 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Employment Court in Kakamega halted execution of a judgment against Kakamega Gas County Government, but only if the full decretal sum is deposited in court within 30 days.

What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court at Kakamega (Jemimah Keli, J) determines a judgment debtor's Notice of Motion dated May 23, 2023 seeking stay of execution of the judgment and decree of September 22, 2022 pending an appeal already lodged. The applicant, who was the respondent before the court in the main suit, complained that execution proceedings had been commenced and its property proclaimed, that the identity of the decree holder was in doubt, and that any sums paid could not be recovered if the appeal succeeded; it offered security. The respondent opposed, arguing no substantial loss, inordinate delay, no arguable appeal (no draft memorandum annexed), and sought in the alternative that the entire decretal amount be deposited. The court framed a single issue: whether stay pending appeal was merited under Order 42 rule 6(2) of the Civil Procedure Rules. It held that arguability of the appeal is an irrelevant consideration for the trial court, that substantial loss had been proved on balance of probabilities given uncertainty over refund, that there was no inordinate delay as the memorandum of appeal was filed two days after judgment, and that security was offered. Applying the Butt v Rent Restriction Tribunal principles and the overriding objective, the court allowed the application and stayed execution on condition that the applicant deposits the entire decretal sum in court within 30 days, failing which execution shall proceed, with costs of the application to the Claimant.

Key legal issues

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01

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

Holding

Stay granted: substantial loss proved on balance of probabilities, no inordinate delay, and applicant willing to furnish security.

Reasoning

The court applied the Order 42 rule 6(2) test of substantial loss, absence of unreasonable delay and security. It held that arguability of the appeal is irrelevant at first instance, accepted the applicant's claim that the decree holder might be unable to refund the decretal sum, found the memorandum of appeal filed two days after judgment, and invoked the overriding objective to preserve the appeal's utility.

p. 5
02

Whether failure to attach a draft memorandum of appeal defeats an application for stay

Holding

No - arguability of the appeal is not a criterion for the trial court determining stay.

Reasoning

The respondent argued the applicant had not annexed a draft memorandum of appeal to show an arguable appeal. The court held that considering arguability would invite the trial court to sit on appeal over its own decision, so the objection was rejected.

p. 4

Legal principles established

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  • Whether an arguable appeal exists is irrelevant in a trial court's determination of an application for stay pending appeal.
  • Execution being in motion does not by itself amount to substantial loss; the applicant must show the execution would render the appeal nugatory.

Court orders

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  1. 1.Stay of execution of the judgment and decree dated September 22, 2022 granted pending appeal, on conditions
  2. 2.The applicant shall deposit the entire decretal sum in court within 30 days of the ruling and order, failing which execution to proceed
  3. 3.Costs of the application to the Claimant

Authorities

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Legislation

  • Civil Procedure ActSections 1, 1A, 1B, 3, 3A
  • Civil Procedure RulesOrder 40 rules 1, 2, 3; Order 42 rules 5 and 6(2)
  • Constitution of KenyaArticle 159(2)

Cases cited (7)

  • Kileleshwa Service station Ltd v Kenya Shell Ltd
    [2008] eKLR
  • Halai & another v Thornton & Turpin (1963) Ltd
    [1990] KLR 365
  • Kenya Shell Ltd v Benjamin Kibiru
    [1982-881] KAR 1018 [1986] KLR 410
  • Joseph Odede Walome v David Mbadi Akello
    [2022] eKLR
  • James Wangalwa & Another v Agnes Naliaka Cheseto
    [2012] eKLR
  • MFI Document Solutions Ltd v Paretto Printing Works Limited
    [2021] eKLR
  • Butt v Rent Restriction Tribunal
    [1982] KLR 417
Jurisdiction invoked
Sections 1, 1B, 3 and 3A of the Civil Procedure Act; Order 40 rules 1, 2, 3 and Order 42 rules 5 and 6 of the Civil Procedure Rules; Article 159(2) 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, "Kenya Hotel & Allied Workers Union v Hotel Rastopark (Cause 15 of 2019) [2023] KEELRC 1739 (KLR)", Case Analysis (2023). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1739/eng@2023-07-14

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