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ELRCDismissedNotice of Motion dated 26th February 2025 (arising from Milimani CMEL E1156/2022)· [2025] KEELRC 2170 (KLR)

Modern Coast Coaches Limited v Ali (Miscellaneous Application E066 of 2025) [2025] KEELRC 2170 (KLR)

Employment and Labour Relations Court of Kenya
18 July 2025
3,992 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court refused Modern Coast's late appeal and stay of execution, ruling a five-month unexplained delay forfeits a judgment debtor's second chances.

What this practically means

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Executive summary

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Modern Coast Coaches Limited, the Appellant/Applicant, moved the Employment and Labour Relations Court by Notice of Motion dated 26th February 2025 seeking an order staying the intended sale of motor vehicle KCQ0X7V, its release from attachment, leave to file an appeal out of time against the judgment of Hon. S.N. Muchungi (PM) delivered on 20th September 2024 in Milimani CMEL E1156/2022, and stay of execution of that judgment pending appeal. The respondent, Ghalib Abdalla Ali, had obtained a judgment and decree of Kshs. 839,126.00 and, after the 30-day stay lapsed, commenced execution through First Choice Auctioneers. He opposed the application, arguing inordinate and unexplained delay, laches, failure to comply with prior conditional stay orders, failure to deposit security, material non-disclosure and abuse of process. The court, J.W. Keli J, framed two issues: leave to file appeal out of time and stay of execution pending appeal. Applying Rule 18 of the ELRC (Procedure) Rules 2024, Section 79G of the Civil Procedure Act, Order 50 Rule 6 and Order 42 Rule 6(2) of the Civil Procedure Rules, and the Supreme Court's principles in Nicholas Kiptoo Arap Korir Salat v IEBC, the court found a five-month unjustified delay, held the applicant guilty of laches, and noted non-compliance with the conditional stay granted on 18th March 2025. Following Charangu v Wanjeri and Dickson Miriti Kamonde v Kenya Commercial Bank Ltd, the court held the applicant undeserving of enlargement of time or further stay. The application was dismissed with costs to the respondent, with a right of appeal granted.

Key legal issues

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01

Whether leave to file an appeal out of time should be granted

Holding

Leave was refused. The appeal should have been filed by 20th October 2024 but the draft memorandum was only filed on 26th February 2025, an unjustified delay of about five months attributable to the applicant's laches.

Reasoning

The court applied Rule 18 of the ELRC (Procedure) Rules 2024, Section 79G of the Civil Procedure Act and Order 50 Rule 6 of the Civil Procedure Rules, and the Salat principles on extension of time. The applicant requested a certified copy of the judgment only on 24th October 2024, over a month after the judgment, and could not satisfactorily explain the delay. Prejudice to the respondent and the principle that litigation must come to an end weighed against extension.

p. 6
02

Whether stay of execution pending appeal should be granted

Holding

Stay was refused. The applicant failed to show substantial loss, made the application after unreasonable delay, did not provide security, and did not comply with conditional stay orders granted on 18th March 2025.

Reasoning

Since the ELRC Rules are silent on conditions for stay, Order 42 Rule 6(2) of the Civil Procedure Rules applies. A conditional stay granted on 18th March 2025 (payment of auctioneer charges and deposit of the decretal sum in a joint interest-earning account within 30 days) was not complied with and lapsed. Following Charangu v Wanjeri, failure to comply with conditions vacates stay, and inordinate unexplained delay disentitles a party to the court's discretion. The respondent had earned the right to enjoy the fruits of judgment.

p. 8

Legal principles established

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  • Extension of time is an equitable remedy available only to a deserving party; the applicant must explain the delay to the satisfaction of the court, show the delay is not inordinate, and show the respondent will suffer no prejudice.
  • An applicant for stay pending appeal must satisfy the conditions of substantial loss, absence of unreasonable delay and provision of security for due performance of the decree.
  • Non-compliance with conditional orders of stay vacates the stay, and unexplained inordinate delay disentitles a party to the court's discretion.

Court orders

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  1. 1.The Notice of Motion application dated 26th February 2025 is dismissed
  2. 2.Costs of the application awarded to the respondent
  3. 3.Right of appeal granted

Authorities

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Legislation

  • Constitution of KenyaArticle 159
  • Civil Procedure ActSections 1A, 1B, 3A, 79G
  • Employment and Labour Relations ActSection 17
  • Employment and Labour Relations Court (Procedure) Rules 2024Rules 8, 12, 18, 21
  • Civil Procedure Rules 2010Order 42 Rule 1, Order 42 Rule 6(2), Order 40 Rule 4(3), Order 50 Rule 6, Order 51

Cases cited (4)

  • Nicholas Kiptoo Arap Korir Salat v The Independent Electoral and Boundaries Commission & Others
    [2014] eKLR
  • Kenya Ports Authority v Silas Obengele
    Civil Application No Nai 297 of 2004 [2006] 2 KLR 112
  • Charangu & another v Wanjeri
    [2023] KEHC 23819 (KLR)
  • Dickson Miriti Kamonde v Kenya Commercial Bank Ltd
    [2006] eKLR
Jurisdiction invoked
Article 159 of the Constitution of Kenya; Sections 1A, 1B and 3A of the Civil Procedure Act; Rule 8 and Section 17 of the Employment and Labour Relations Act read with the Employment and Labour Relations Court (Procedure) Rules 2024; Order 51 of the Civil Procedure Rules 2010

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, "Modern Coast Coaches Limited v Ali (Miscellaneous Application E066 of 2025) [2025] KEELRC 2170 (KLR)", Case Analysis (2025). Notice of Motion dated 26th February 2025 (arising from Milimani CMEL E1156/2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2170/eng@2025-07-18

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