Mbuthu v De La Rue Currency and Security Print Limited (Cause 969 of 2017) [2023] KEELRC 2217 (KLR)
The bottom line
#Kenya's Employment Court refused to force De La Rue to deposit Kshs 19 million in an employee's case, ruling that corporate group ties alone don't justify attachment before judgment.
What this practically means
#Executive summary
#Key legal issues
#Whether the claimant satisfied the conditions for attachment/security before judgment under Order 39 rules 1 and 5
The claimant did not; the application was disallowed with costs in the cause
The application was triggered by a Business Daily article concerning De La Rue Kenya EPZ Limited, a separate entity in which the Government of Kenya holds a 40% stake. The respondent produced a CR12 showing it is a distinct limited liability company with no government stake and no plan to wind up. Although the claimant made a good effort to link the respondent to De La Rue PLC and its EPZ subsidiary, the corporate relationship alone could not establish any of the statutory grounds — intent to delay or avoid court process, absconding, or disposal of property. No evidence supported any violation under Order 39 rule 1 and 5.
Legal principles established
#- At the interlocutory stage under Order 39 rule 1 and 5, none of the parties has proved their case on merit and the court must not saddle any party with obligations that ought to await final determination
- A corporate relationship among associated entities, standing alone, is insufficient to justify attachment before judgment absent evidence of the statutory grounds
Court orders
#- 1.The claimant's application dated July 28, 2023 is disallowed with costs in the cause
- Jurisdiction invoked
- Original jurisdiction of the Employment and Labour Relations Court over a part-heard employment claim; interlocutory application under Order 39 rules 1 and 5 of the Civil Procedure Rules
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Mbuthu v De La Rue Currency and Security Print Limited (Cause 969 of 2017) [2023] KEELRC 2217 (KLR)", Case Analysis (2023). ELRC Cause dated May 5, 2017 (interlocutory application dated July 28, 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2217/eng@2023-09-28
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.