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ELRCDismissedCause No 3 of 2020· [2023] KEELRC 1826 (KLR)

Ali v Grain Industries Limited (Cause 3 of 2020) [2023] KEELRC 1826 (KLR)

Employment and Labour Relations Court of Kenya
13 July 2023
1,370 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Grain Industries lost its bid to stop execution of a Ksh. 2.8 million employment award because its appeal notice targeted the wrong decision.

What this practically means

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Executive summary

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The Claimant obtained a judgment on 13/5/2022 awarding Ksh. 2,808,871 with interest, costs of the suit, and an order that the Respondent deliver a certificate of service under Section 51 of the Employment Act by 31/5/2022. Costs were taxed at Ksh. 402,661 by a Certificate of Costs dated 19/12/2022. Execution proceedings followed, including a Notice of Proclamation served on 23/1/2023 and warrants issued to Fantasy Auctioneers totalling Kshs. 3,438,491.67. The Respondent, having filed a Notice of Appeal on 26/5/2022, moved the Court by Notice of Motion dated 27/1/2023 under Order 42 rule 6(2) and (3) of the Civil Procedure Rules and sections 1A, 1B and 3A of the Civil Procedure Act, seeking a stay of execution and proclamation pending appeal, offering to deposit the decretal sum as security. An interim stay had been granted on 27/1/2023 conditional on deposit of the decretal sum within 14 days. The Claimant opposed, pointing out that the Notice of Appeal referenced a Ruling of 13th May 2020, not the judgment of 13th May 2022. Justice Nzei held that under Order 42 rule 6(4) a stay pending appeal presupposes a valid notice of appeal given within 14 days of the decree; the Respondent's Notice of Appeal did not relate to the 13/5/2022 judgment. The application was dismissed and the interim stay orders vacated. No costs order was made.

Key legal issues

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01

Validity of the Notice of Appeal as a foundation for stay of execution

Holding

The Notice of Appeal filed on 26/5/2022 referenced a Ruling of 13th May 2020, not the judgment of 13th May 2022, and was therefore not a valid Notice of Appeal against the decree sought to be stayed

Reasoning

Order 42 rule 6(4) deems an appeal to the Court of Appeal to have been filed when a notice of appeal has been given under that Court's Rules. The Court held that a stay pending appeal presupposes a valid notice of appeal against the decree. The Respondent's Notice of Appeal expressed dissatisfaction with a Ruling given on 13th May 2020, while the decree was contained in a judgment delivered on 13th May 2022. No valid notice existed.

p. 3
02

Conditions for grant of stay under Order 42 rule 6(2)

Holding

A stay requires satisfaction that substantial loss may result, that the application was made without unreasonable delay, and that security for due performance has been provided

Reasoning

The Court set out the statutory framework: Order 42 rule 6(1) provides that an appeal does not operate as an automatic stay; rule 6(2) requires substantial loss, absence of unreasonable delay and security; rule 6(4) deems an appeal filed upon a notice of appeal. Since the threshold requirement of a valid notice of appeal was not met, the conditions under rule 6(2) did not arise for consideration.

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Legal principles established

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  • Before a court can order stay of execution of its decree pending appeal, it must be satisfied that a valid notice of appeal has been given within 14 days of the decree or order appealed against
  • An application for stay of execution pending appeal cannot be founded where no valid notice of appeal against the decree exists

Court orders

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  1. 1.The Notice of Motion dated 27/1/2023 is dismissed
  2. 2.The interim stay orders given on 27/1/2023 are vacated

Authorities

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Legislation

  • Employment ActSection 51
  • Employment and Labour Relations Court ActSection 13
  • Employment and Labour Relations Court (Procedure) Rules 2016Rule 32(2)
  • Civil Procedure ActSections 1A, 1B, 3A
  • Civil Procedure RulesOrder 42 rule 6(1), (2), (3) and (4)
Jurisdiction invoked
Order 42 rule 6(2) and (3) of the Civil Procedure Rules; sections 1A, 1B and 3A of the Civil Procedure Act; Section 13 of the Employment and Labour Relations Court Act; rule 32(2) of the ELRC (Procedure) Rules 2016

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, "Ali v Grain Industries Limited (Cause 3 of 2020) [2023] KEELRC 1826 (KLR)", Case Analysis (2023). Cause No 3 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1826/eng@2023-07-13

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