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ELRCAllowedNot stated in judgment· [2024] KEELRC 2100 (KLR)
Saka v ABSA Bank Kenya PLC (Cause E383 of 2022) [2024] KEELRC 2100 (KLR)
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·~3 min to read original · ~4 min briefThe bottom line
#What this practically means
#Executive summary
#This is an interlocutory ruling of the Employment and Labour Relations Court at Nairobi, delivered by Nzioki Wa Makau J on 26th July 2024, on the Respondent's notice of motion dated 24th April 2024 seeking stay of execution of the Court's decree pending appeal. The Claimant opposed the application by affidavit and the matter was disposed of by written submissions; only the Respondent's submissions were on file at the time of the ruling. The Respondent argued that its appeal to the Court of Appeal, following a notice of appeal filed on 18th April 2024, would be rendered nugatory if execution proceeded, that it stood to suffer substantial loss because the Claimant might be unable to refund the decretal sum on a successful appeal, that the application was made without delay, and that it offered security by way of a bank guarantee. In support it relied on RWW v EKW, EDK v Kenyatta University, Halai & another v Thornton & Turpin Ltd, Kan Travellers Co Ltd v Ndalu, and Nduhiu Gitahi v Warugongo. The court held the application merited: there was no delay, security had been offered, and the Claimant might be unable to refund the sums awarded. The court ordered stay of execution on condition that the Respondent deposits the entire decretal sum in a joint interest-earning account in the joint names of the parties' advocates, with costs of the application abiding the appeal outcome.
Key legal issues
#01
Whether the conditions for stay of execution pending appeal were satisfied
Holding
Stay granted; the application was filed promptly, security was offered, and the Claimant may be unable to refund the decretal sum if the appeal succeeds.
Reasoning
The court found the notice of appeal was filed on 18th April 2024 and the application on 24th April 2024, evidencing no delay. The Respondent offered a bank guarantee as security. The court was persuaded that the Claimant may be unable to refund the decretal sum were the Court of Appeal to overturn the decision, satisfying the substantial-loss condition, and stayed execution on terms.
p. 2
Legal principles established
#- The purpose of an application for stay of execution is to preserve the subject matter in dispute so that a successful appeal is not rendered nugatory, and the discretion is governed by sufficient cause, substantial loss, security and absence of unreasonable delay (as adopted from Court of Appeal authority).
- Security for a stay may take many forms, including a bank guarantee, so long as it adequately protects the opposite party.
Court orders
#- 1.Stay of execution granted on condition that the Respondent deposits the entire decretal sum in a joint interest-earning account in the joint names of the advocates for the parties
- 2.Costs of the application to abide the outcome in the Court of Appeal
- Jurisdiction invoked
- Inherent jurisdiction to stay execution pending appeal (interlocutory application); the judgment does not cite a specific statutory provision
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Saka v ABSA Bank Kenya PLC (Cause E383 of 2022) [2024] KEELRC 2100 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2100/eng@2024-07-26
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.