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ELRCPartially Allowed· [2025] KEELRC 1468 (KLR)

Arisa v Kipkebe Limited; Ryce EA Limited (Objector) (Employment and Labour Relations Cause E005 of 2023) [2025] KEELRC 1468 (KLR)

Employment and Labour Relations Court
23 May 2025
4,236 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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A Kenyan court halted the seizure of a company's vehicles and froze a costs award, warning decree-holders to verify what they attach before auctioneers act.

What this practically means

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Executive summary

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This ELRC ruling at Nakuru, delivered virtually by Anna Ngibuini Mwaure J on 23rd May 2025, determined two applications arising from execution of a judgment of 23rd May 2024 in which the Claimant had succeeded. The Respondent/Applicant sought stay of execution of the judgment and set-aside of the taxing officer's ruling of 15th January 2025 (Hon. Japhet Bii) and the Certificate of Costs of 23rd January 2025, contending that its submissions on the Party and Party Bill of Costs were overlooked, condemning it unheard, and that execution was irregular - no decree was extracted or served, and warrants issued without a proper application for execution. The Objector, RYCE E.A Limited, sought release of eight proclaimed motor vehicles it claimed to own, asserting no connection to the judgment-debtor. The Claimant opposed the stay, urging that execution was lawful and the application a delaying tactic, and filed no response to the Objector's application. Applying Order 42 Rule 6(2) of the Civil Procedure Rules and guided by Shell v Kibiru, the court found the Applicant had demonstrated substantial loss, filed timeously and offered security, while the Claimant failed to prove ability to refund. It granted a conditional stay, ordered deposit of the decretal sum of Kshs.548,775/= within 30 days, and set aside the taxation ruling and Certificate of Costs to allow the intended appeal. Applying Sections 107 and 108 of the Evidence Act, the court found the Objector proved ownership through NTSA records and allowed its application, with costs of that application borne jointly by the Claimant and Hegeons Auctioneers.

Key legal issues

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01

Whether the Respondent/Applicant satisfied the conditions for stay of execution under Order 42 Rule 6(2)

Holding

Stay granted: substantial loss demonstrated, application filed without delay, and willingness to furnish security shown; the Claimant did not prove ability to refund.

Reasoning

The court found the taxing master overlooked the Applicant's submissions, condemning it unheard, which grounded substantial loss. The application was filed on 28th January 2025 shortly after the 15th January 2025 ruling. The Claimant gave no evidence of capacity to refund the decretal sum. The Applicant offered security. The court held all Order 42 Rule 6(2) conditions were met and granted a conditional stay with the decretal sum deposited as security.

p. 7
02

Whether the set-aside of the taxation ruling and Certificate of Costs was warranted

Holding

The 15th January 2025 ruling and the 23rd January 2025 Certificate of Costs were set aside to allow the intended appeal to proceed, because the taxing officer failed to consider the Applicant's filed and served submissions.

Reasoning

The taxing officer indicated the Respondent had not filed a response to the Bill, yet submissions dated 11th April 2024 had been filed and served, and the Claimant's own submissions alluded to them. Taxation being judicial, both parties' right to a fair hearing had to be respected; failure to consider the submissions violated that right, justifying setting aside the ruling and certificate.

p. 9
03

Whether the proclaimed motor vehicles belong to the Objector and should be released

Holding

The Objector's application allowed; NTSA records showed the vehicles were registered in the Objector's name with no connection to the Respondent, and the Claimant did not prove the vehicles belonged to the judgment-debtor.

Reasoning

Applying Sections 107 and 108 of the Evidence Act, the burden lay on the objector to prove interest in the attached property. NTSA motor vehicle records showed all the vehicles registered under the Objector's name. The Claimant/Decree-holder, who bore the duty to verify that attached property belongs to the judgment-debtor, adduced no proof of ownership by the Respondent. The proclamation of the Objector's vehicles was therefore unjustified and the application was allowed as prayed.

p. 8

Legal principles established

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  • A money decree does not automatically stay execution; an applicant for stay must show substantial loss under Order 42 Rule 6(2) of the Civil Procedure Rules, and the court must balance ensuring an appeal is not rendered nugatory against protecting the respondent's right to enjoy the judgment.
  • In objection proceedings, the burden lies on the objector to prove a legal or equitable interest in the attached property, and the decree-holder must ensure the attached property truly belongs to the judgment-debtor.

Court orders

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  1. 1.Stay of execution granted pending the hearing and determination of the intended appeal
  2. 2.The decretal sum of Kshs.548,775/= to be deposited in court as security pending determination of the intended appeal, within 30 days from the date of delivery of the ruling
  3. 3.In default of the above conditions, execution to proceed
  4. 4.The Ruling of the Learned Magistrate Hon. Japhet Bii delivered on 15th January 2025 and the Certificate of Costs issued on 23rd January 2025 set aside to allow the intended appeal to proceed
  5. 5.Costs of the Respondent/Applicant's application to be in the intended appeal
  6. 6.The Objector's application dated 4th February 2025 allowed as prayed (attachment lifted and proclaimed vehicles released)
  7. 7.Costs of the Objector's application to be borne by the Claimant/Decree Holder and Hegeons Auctioneers jointly

Authorities

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Legislation

  • Employment and Labour Relations Court (Procedure) Rules, 2024Rule 73(2)
  • Employment and Labour Relations Court (Procedure) Rules, 2024Rule 72
  • Civil Procedure RulesOrder 42 Rule 6 (and 6(2))
  • Civil Procedure Rules, 2010Order 22 Rule 51 (and 51(1)), Rule 53, Rule 54
  • Civil Procedure RulesOrder 51 Rule 14
  • Civil Procedure RulesOrder 21 Rule 1
  • Advocates (Remuneration) OrderRule 11 (11(1) and 11(2))
  • Evidence ActSections 107 and 108
  • Constitution of KenyaArticles 159(2)(d) and 48
  • Civil Procedure Act (Chapter 21, Laws of Kenya)Section 1B

Cases cited (14)

  • Jamii Bora Bank Limited & Another v Samuel Wambugu Ndirangu
    [2022] KEHC 1845 (KLR)
  • Butt v Rent Restriction Tribunal
    (1979)
  • Shell Ltd v Kibiru and Another
    [1986] KLR 410 (also cited as (1988) KLR 410)
  • Wilson v Church
    (1879)
  • Jessikay Enterprises Ltd v George Kahoto Muiruri
    [2022] eKLR
  • NCBA Bank Limited v WYSS Logistics Limited
    [2024] KEHC 1613 (KLR)
  • ABN Amro Bank NK v Le Monde Foods Limited
    Civil Application No. 15 of 2002 [NRB]
  • Ahmednasir Abdikadir & Co. Advocates vs. National Bank of Kenya Limited (2)
    [2006] 1 EA 5
  • George v Pollman's Tours & Safaris
    [2023] KEELRC 3347 (KLR)
  • Landmark Holdings Ltd v Robert Mecems Kinyua
    (2018) eKLR
  • Jasbir Singh Rai & 3 Others v Tarlochan Singh Rai & 4 Others
    [2014] eKLR
  • Stephen Kiprotich Koech v Edwin K. Barchilei; Joel Sitienei (Objector)
    [2019] KEELRC 2572 (KLR)
  • Arun C. Sharma v. Ashana Raikundalia T/A A. Raikundalia & Co. Advocates & 4 Others
    [2014] eKLR
  • Palace Investments Limited v Geofirey Kariuki Mwenda & Another
    [2015] KECA 616 (KLR)
Jurisdiction invoked
Rule 73(2) of the Employment and Labour Relations Court (Procedure) Rules, 2024 read with Order 42 Rule 6 and Order 22 of the Civil Procedure Rules

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Arisa v Kipkebe Limited; Ryce EA Limited (Objector) (Employment and Labour Relations Cause E005 of 2023) [2025] KEELRC 1468 (KLR)", Case Analysis (2025). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1468/eng@2025-05-23

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