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ELRCDismissedApplication dated 16th July 2024 (in appeal from Nakuru C.M. E&LRC Cause Number E060 of 2023)· [2025] KEELRC 329 (KLR)

Bedi Investments Limited v Mose (Appeal E018 of 2024) [2025] KEELRC 329 (KLR)

Employment and Labour Relations Court
12 February 2025
567 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 refused to pause enforcement of an employment judgment, holding that simply being short of money is not enough to stop a decree.

What this practically means

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Executive summary

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This is a ruling of the Employment and Labour Relations Court at Nakuru (Rika J) on an application dated 16th July 2024 by the Appellant seeking stay of execution of the judgment and decree of the trial Court in Nakuru C.M. E&LRC Cause Number E060 of 2023, delivered on 6th March 2024. The Appellant had earlier sought stay before the trial Court, which declined it by a ruling dated 10th July 2024 on the ground that the Appellant had not established that it would suffer any loss, substantial or otherwise, if the decretal sum was paid - hence the present application. The application was supported by affidavits of the Appellant's Human Resource Officer, Peris Waithera, and was opposed through a replying affidavit sworn by the Respondent's Counsel, Nigel Ouma Mwallo. The Appellant relied on a letter from its bank (BOI) showing an overdrawn account, and cited financial losses sustained during the Covid-19 pandemic, arguing it was on the verge of insolvency. The court found no financial statements exhibited to support the insolvency claim, held that an overdrawn-account letter is hardly evidence of substantial loss, and applied the Century Oil Trading Company v. Kenya Shell principle that the court must consider both parties' positions, including whether the Respondent could refund the decretal sum. Concluding that the Appellant had not established substantial or irreparable loss, the court declined the application and made no order on costs. The judgment was delivered electronically at Nakuru on 12th February 2025.

Key legal issues

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01

Whether an overdrawn bank account demonstrates substantial loss for purposes of stay of execution

Holding

It does not; a bank letter showing an overdrawn account is hardly evidence of substantial loss

Reasoning

The court held that mere financial difficulty in paying a decree is not the substantial loss contemplated by the law on stay. The appellant produced no financial statements to support its claim of imminent insolvency, and did not show that the respondent would be unable to refund the decretal amount if the appeal succeeded. Substantial loss requires proof of the respondent's inability to refund, not the ordinary financial burden of satisfying a decree.

p. 2
02

Whether failure to present financial statements undermines a claim of insolvency

Holding

Yes; without financial statements, the claim of imminent insolvency fails

Reasoning

The appellant alleged it was on the verge of insolvency, relying on Covid-19 losses and its bank's letter. The court found no financial statements exhibited to support this alarming submission, and no other evidence establishing substantial or irreparable loss if execution proceeded.

p. 2

Legal principles established

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  • In considering whether substantial loss will be sustained by an appellant if execution proceeds, the court must look at the position of both the appellant and the respondent
  • Substantial loss is not the normal financial loss a judgment-debtor incurs in meeting a decretal sum; the inability of the decree-holder to refund must be established

Court orders

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  1. 1.The application filed by the Appellant dated 16th July 2024 is declined
  2. 2.No order on the costs
On appeal from
Chief Magistrate's Court, Nakuru (Employment and Labour Relations Cause)
E060 of 2023
Jurisdiction invoked
Appellate/interlocutory jurisdiction of the Employment and Labour Relations Court over an appeal from a subordinate court in an employment cause (application for 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, "Bedi Investments Limited v Mose (Appeal E018 of 2024) [2025] KEELRC 329 (KLR)", Case Analysis (2025). Application dated 16th July 2024 (in appeal from Nakuru C.M. E&LRC Cause Number E060 of 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/329/eng@2025-02-12

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