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ELRCAllowedMombasa ELRC Appeal (application dated 13 September 2023)· [2023] KEELRC 2706 (KLR)

Mewa Hospital v Khator (Appeal E090 of 2023) [2023] KEELRC 2706 (KLR)

Employment and Labour Relations Court
31 October 2023
860 words in judgment
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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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The appellant, a Board of Management, moved the Employment and Labour Relations Court at Mombasa by an application dated 13 September 2023 seeking stay of execution of the judgment delivered on 6 April 2023 in Mombasa CMELRC No. E093 of 2022, in which the respondent was awarded a decree. The appellant, through the supporting affidavit of Mohamed Hassan Mohamed, argued that the appeal was arguable with high chances of success, that the application was filed without delay, and that the appellant had been condemned unheard. Execution had been set in motion by proclamation notice and warrants of attachment, including attachment of two ambulances. The respondent, through the replying affidavit of Bosire Ryan Nyariki, opposed the application as an abuse meant to delay enjoyment of the judgment, noting that no loss had been demonstrated, no security offered, and that the appellant had failed to comply with an earlier direction to deposit security of Kshs. 1,048,000. The court held that while an aggrieved party has a right of appeal under Section 17 of the Employment and Labour Relations Court Act, 2011, a judgment creditor has a legitimate expectation to enjoy the fruits of judgment. Balancing both rights, and noting the appellant had subsequently deposited Kshs. 1,048,000 - the bulk of the decretal sum of Kshs. 1,420,964 - the court found a conditional stay justified to enable the appeal be heard on the merits. The judgment and all consequential orders were stayed, the deposit to stand as security, with costs to abide the appeal. Delivered by M. Mbarũ, J, on 31 October 2023.

Key legal issues

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01

Whether stay of execution pending appeal should issue

Holding

A conditional stay was granted because the appellant had filed its appeal and deposited the bulk of the judgment sum (Kshs. 1,048,000) in court, securing the decree and enabling both parties a hearing on the merits.

Reasoning

The court balanced the respondent's legitimate expectation to enjoy the fruits of his judgment against the appellant's statutory right of appeal under Section 17 of the Employment and Labour Relations Court Act, 2011. Although the appellant initially failed to meet the timeline for depositing security directed on 13 September 2023, it subsequently deposited Kshs. 1,048,000, being the bulk of the decretal sum of Kshs. 1,420,964. With the decree thus substantially secured, allowing execution to proceed would render the appeal nugatory; a stay was therefore found necessary in the interests of justice.

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Legal principles established

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  • A party with a valid judgment has a legitimate expectation to enjoy the fruits of that judgment, but where an appeal is on file and security substantially deposited, a conditional stay is justified to allow the appeal be heard on the merits.

Court orders

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  1. 1.Judgment delivered on 6 April 2023 in Mombasa MCELRC No. E093 of 2022 and all consequential orders thereof is stayed pending the hearing and determination of the appeal
  2. 2.The security deposit of Kshs. 1,048,000 already made shall apply as security pending the appeal
  3. 3.Costs shall abide the outcome of the appeal

Authorities

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Legislation

  • Employment and Labour Relations Court ActSection 17
On appeal from
Mombasa CMELRC
E093 of 2022
Jurisdiction invoked
Section 17 of the Employment and Labour Relations Court Act, 2011 (right of appeal); stay of execution pending appeal

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, "Mewa Hospital v Khator (Appeal E090 of 2023) [2023] KEELRC 2706 (KLR)", Case Analysis (2023). Mombasa ELRC Appeal (application dated 13 September 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2706/eng@2023-10-31

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