Chandaria v Mungai (Employment and Labour Relations Appeal E086 of 2025) [2025] KEELRC 2164 (KLR)
The bottom line
#A Kenyan employer won a stay of execution pending appeal but must deposit half the judgment money in court within 30 days.
What this practically means
#Executive summary
#Key legal issues
#Whether substantial loss was established
Substantial loss established because the respondent failed to prove ability to refund the decretal sum if the appeal succeeds
The court applied Order 42 Rule 6(2). Mere likelihood of execution is not substantial loss, but the applicant's reasonable fear of non-refund raised an evidential burden which the respondent did not discharge by showing his resources. The court therefore found a high likelihood of the appeal being rendered nugatory if execution proceeded before hearing of the appeal.
Whether the application was made without unreasonable delay
Application brought approximately 1 month and 9 days after judgment, without unreasonable delay
The judgment was delivered on 28 February 2025 and the motion dated 7 April 2025; the court found this delay reasonable, satisfying the second limb of Order 42 Rule 6(2).
What form of security is appropriate
Stay granted conditioned on deposit of half the decretal sum in court; the bank guarantee proposal was not accepted as no guarantee document was placed before the court
While a bank guarantee is a legitimate and sufficient form of security within the court's discretion, the applicant placed no copy of any guarantee before the court for assessment. Balancing the parties' rights proportionately, the court required a deposit of half the decretal sum within 30 days as a reasonable condition of stay.
Legal principles established
#- Once an applicant expresses a reasonable fear that a respondent would be unable to repay the decretal sum, the evidential burden shifts to the respondent to show what resources he has
- Mere commencement or likelihood of commencement of execution does not amount to substantial loss
Court orders
#- 1.Stay of execution of the Judgment and Order of Hon. Becky Cheloti delivered on 28th February 2025 pending the hearing and determination of the appeal, on condition that the Appellant/Applicant deposits half of the decretal sum in Court within 30 days of the Ruling
- 2.Appellant to file the complete record of appeal together with written submissions within 60 days and ensure compliance with the Court Rules of 2024
- 3.Mention on 17th September 2025 to confirm compliance and issue further directions
- 4.Costs of the application to the Respondent in the cause
- On appeal from
- Chief Magistrate's Court (Milimani), Nairobi
- Nairobi Chief Magistrate's Employment Case No. E470 of 2022
- Jurisdiction invoked
- Sections 12(1) and (3) of the Employment and Labour Relations Court Act; Order 42 Rule 6(1) & (3) of the Civil Procedure Rules 2010; Sections 1A, 1B and 3A of the Civil Procedure Act; Rules 21 and 73(2) of the ELRC (Procedure) Rules 2024
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Chandaria v Mungai (Employment and Labour Relations Appeal E086 of 2025) [2025] KEELRC 2164 (KLR)", Case Analysis (2025). Nairobi ELRC Appeal arising from Nairobi Chief Magistrate's Employment Case No. E470 of 2022 (Notice of Motion dated 7th April 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2164/eng@2025-07-18
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.