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ELRCPartially AllowedNotice of Motion dated 12th February 2024 (in respect of Nairobi CMELRC No 890 of 2019)· [2024] KEELRC 1621 (KLR)

Mason Services Limited v Kanja (Miscellaneous Case E032 of 2024) [2024] KEELRC 1621 (KLR)

High Court of Kenya
24 June 2024
2,206 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court let a company appeal late after learning of a judgment from auctioneers, but refused to pause the debt enforcement because real loss wasn't proven.

What this practically means

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Executive summary

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By a Notice of Motion dated 12th February 2024 under Article 50(1) of the Constitution, Order 42 Rule 6 and Order 51 Rule 1 of the Civil Procedure Rules 2010 and Sections 1A, 1B and 3A of the Civil Procedure Act, Mason Services Limited sought leave to appeal out of time against an ex parte judgment of Hon. Becky M. Cheloti, PM, delivered on 28th November 2023 in MCELRC No 890 of 2019 (Peter Kanja v Mason Services Limited), awarding the Respondent Kshs. 2,205,016.47 plus interest and costs, and a stay of execution of the resulting decree. The Applicant said it was never served with summons or notice of entry of judgment and learned of the suit only on 8th February 2024 when auctioneers proclaimed its goods; it had applied before the trial court to set aside the judgment but the application was not certified urgent. The Respondent, though served, did not oppose the application. The court, Kebira J, framed two issues. Applying the Supreme Court's principles in Nicholas Kiptoo Arap Korir Salat v IEBC, the court held the delay of about one and a half months beyond the 30-day period under Section 79G was short, sufficiently explained by non-service (an assertion unrebutted by the Respondent), and that no prejudice would result, especially given the Applicant's offer of security; leave to appeal out of time was granted. However, on stay of execution under Order 42 Rule 6, the court found that the Applicant had only generally alleged substantial loss without demonstrating how or why it would occur, and that mere commencement of execution, being a lawful process, does not amount to substantial loss. Stay was accordingly refused. The application was allowed in part: leave to file the appeal within 30 days, with costs of the application to abide the outcome of the intended appeal.

Key legal issues

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01

Leave to appeal out of time

Holding

Leave granted because the delay of about one and a half months was short, the Applicant gave a sufficient reason (lack of service of pleadings and notice of judgment) which was unrebutted, and the Respondent would suffer no prejudice given the offer of security

Reasoning

Applying the Salat principles, the court found the delay brief and explained: the Applicant learned of the suit and judgment only when auctioneers proclaimed its goods on 8th February 2024. The Respondent did not rebut the assertion of non-service. The application was filed timeously after discovery, and the Applicant offered to deposit security, so no prejudice would follow from granting leave.

p. 3
02

Stay of execution pending appeal

Holding

Stay refused because the Applicant failed to demonstrate substantial loss

Reasoning

Although execution had commenced by proclamation of the Applicant's goods on 8th February 2024, the court held that execution is a lawful process and its mere commencement does not constitute substantial loss. The supporting affidavit only generally alleged substantial loss without showing how or why it would be suffered, so the condition in Order 42 Rule 6(2)(a) was not satisfied.

p. 5

Legal principles established

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  • Extension of time is an equitable remedy available only to a deserving party at the discretion of the court, and the applicant must explain the delay and show sufficient cause
  • Mere commencement of execution does not by itself establish substantial loss for purposes of an application for stay of execution
  • Stay of execution is grantable only upon satisfaction of the conditions in Order 42 Rule 6(2): substantial loss, application without unreasonable delay, and security

Court orders

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  1. 1.The Applicant is hereby granted leave to file an Appeal against the lower Court's Judgment within 30 days of this ruling.
  2. 2.The costs of this application shall abide by the outcome of the intended appeal.

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 50(1)
  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 48
  • Civil Procedure Act, Cap 21Sections 1A, 1B, 3A, 79G
  • Civil Procedure Rules, 2010Order 42 Rule 6; Order 51 Rule 1; Order 21 Rule 1

Cases cited (3)

  • Nicholas Kiptoo Arap Korir Salat v The Independent Electoral and Boundaries Commission & others
    [2014] eKLR
  • Century Oil Trading Company Ltd v Kenya Shell Limited
    Nairobi (Milimani) HCMCA No 1561 of 2007
  • James Wangalwa & another v Agnes Naliaka
    Misc Application No 42 of 2011 [2012] eKLR
On appeal from
Chief Magistrate's Court (Employment and Labour Relations), Nairobi
MCELRC No 890 of 2019
Jurisdiction invoked
Article 50(1) of the Constitution; Order 42 Rule 6 and Order 51 Rule 1 of the Civil Procedure Rules 2010; Sections 1A, 1B and 3A of the Civil Procedure Act; Section 79G of the Civil Procedure Act

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, "Mason Services Limited v Kanja (Miscellaneous Case E032 of 2024) [2024] KEELRC 1621 (KLR)", Case Analysis (2024). Notice of Motion dated 12th February 2024 (in respect of Nairobi CMELRC No 890 of 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1621/eng@2024-06-24

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