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ELRCPartially AllowedNot stated in judgment· [2023] KEELRC 3439 (KLR)
Molonket v East African Portland Cement Company (Cause 198 of 2019) [2023] KEELRC 3439 (KLR)
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·~4 min to read original · ~4 min briefThe bottom line
#The court paused enforcement of a Kshs. 15 million unfair termination award pending appeal, but only after the employer deposits the money in a joint interest-earning account.
What this practically means
#Executive summary
#This is a ruling of the Employment and Labour Relations Court at Nairobi on a notice of motion dated 23rd October 2023 in which the Respondent sought a stay of execution of the judgment against it pending appeal. The Respondent argued that it had moved the court promptly, that it would suffer irreparable/substantial loss because the Claimant, being unemployed, might be unable to refund the decretal sum of Kshs. 15,165,782/- plus interest and costs if the appeal succeeded, and that it was ready to furnish security by way of a bank guarantee, relying on several authorities on substantial loss and acceptable forms of security. The Claimant opposed, contending that the application was an afterthought, that no security had been offered, and that granting stay would deny her the fruits of a judgment following unlawful termination of her employment. The court, Nzioki Wa Makau J, found that the Respondent had satisfied most of the requirements for stay, having moved the court promptly and demonstrated substantial loss were the sum paid out and not refundable. Stay of execution was granted on condition that the decretal sum of Kshs. 15,165,782/- be deposited in an interest-earning account in the joint names of the advocates for the parties. Costs of the motion were ordered to abide the outcome of the appeal in the Court of Appeal.
Key legal issues
#01
Stay of execution pending appeal
Holding
Stay granted conditional on deposit of the decretal sum of Kshs. 15,165,782/- in an interest-earning joint account
Reasoning
The court found the applicant had moved promptly and demonstrated substantial loss if the claimant, being unemployed, could not refund the decretal sum should the appeal succeed. Security by deposit in a joint interest-earning account protects the claimant while preserving the appellant's position pending appeal.
p. 2
Legal principles established
#- Stay pending appeal may be granted conditionally upon the decretal sum being deposited in a joint interest-earning account to protect both parties' positions
Court orders
#- 1.Stay of execution granted on condition that the sum of Kshs. 15,165,782/- is deposited in an interest earning account in the joint names of the advocates of the parties
- 2.Costs of the motion to abide the outcome of the appeal in the Court of Appeal
- Jurisdiction invoked
- Not stated; jurisdiction flows from the appeal pending against the judgment in the employment dispute
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Molonket v East African Portland Cement Company (Cause 198 of 2019) [2023] KEELRC 3439 (KLR)", Case Analysis (2023). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3439/eng@2023-11-23
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.