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Case Brief · caselaw.co.ke
High CourtAllowedHCCCA No. 8/20 (application dated 3rd August 2020)

Gerald Muthengi Ndatho v Peter Marigu Kirea

High Court of Kenya
2 November 2020
1,708 words in judgment
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The bottom line

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To pause a debt judgment, you must prove the debtor has no assets, shifting the burden of proof onto them.

What this practically means

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Executive summary

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This was a ruling on an application dated 3rd August 2020 by Gerald Muthengi Ndatho, the applicant, seeking stay of execution of a judgment of the trial magistrate delivered on 8th July 2020, pending an intended appeal to the High Court at Chuka against both liability and quantum. The application was brought under Order 42 rule 6 and Order 51 rule 1 of the Civil Procedure Rules and Sections 1A, 1B and 3A of the Civil Procedure Act. The applicant deposed that the respondent, Peter Marigu Kirea, had no known assets and would be unable to refund the decretal sum if the appeal succeeded, and offered to deposit an insurance bond or bank guarantee as security. The respondent opposed, contending the application was frivolous, an abuse of process, and aimed at denying him the fruits of judgment; he proposed that half the decretal sum be paid if stay were granted. Applying Order 42 rule 6(2) and the principles in Butt v Rent Restriction Tribunal, the court found the applicant had established substantial loss because the respondent had not deponed to his ability to refund the decretal sum nor disclosed any source of income, shifting the evidential burden to him. The application was filed within the statutory period under Section 79G, so there was no unreasonable delay. The applicant was ready to provide security. The court granted stay of execution pending the hearing and determination of the appeal, ordered the applicant to deposit the decretal sum in an interest-earning bank account in the joint names of the parties' advocates within 30 days, directed that the ruling apply in HCCCA No. 8/20, and made no order as to costs (costs in the cause).

Key legal issues

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01

Substantial loss and burden of proof on ability to refund the decretal sum

Holding

The applicant established substantial loss; the respondent, having not deponed to his ability to refund or disclosed his source of income, failed to discharge the shifted evidential burden.

Reasoning

The court applied the Court of Appeal principle that while the legal duty lies on the applicant to show the appeal would be rendered nugatory, once inability to refund is alleged, the evidential burden shifts to the respondent, who must show his resources since that is peculiarly within his knowledge. The respondent disclosed no source of income.

p. 2
02

Whether the application was brought without unreasonable delay

Holding

There was no inordinate delay; the memorandum of appeal and the application were filed within the statutory period under Section 79G of the Civil Procedure Act.

Reasoning

Judgment was delivered on 8th July 2020 and the memorandum of appeal together with the application were filed on 5th August 2020, within the period stipulated under Section 79G of the Civil Procedure Act, so the delay condition was satisfied.

p. 2
03

Security for due performance of the decree

Holding

The applicant was ready to provide security; the court, in its discretion, ordered deposit of the decretal sum in an interest-earning account in the joint names of the parties' advocates.

Reasoning

The court noted it is discretionary to determine the kind of security. Since the applicant was appealing against apportionment of liability and quantum, a security ensuring the respondent would get some gains was appropriate, allowing the appeal to be pursued without substantial loss.

p. 3

Legal principles established

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  • Once an applicant alleges that a respondent would be unable to refund the decretal sum, the evidential burden shifts to the respondent to show what resources he has.

Court orders

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  1. 1.Stay of execution pending the hearing and determination of the appeal
  2. 2.The applicant to provide security by depositing the decretal sum in an interest earning bank account within 30 days in the joint names of the advocates for the parties
  3. 3.The ruling to apply in court file No. HCCCA No. 8/20
  4. 4.Costs in the cause
On appeal from
Trial court (magistrates' court)
Jurisdiction invoked
Order 42 rule 6(2) and Order 51 rule 1 Civil Procedure Rules; Sections 1A, 1B and 3A Civil Procedure Act (Cap 21)

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, "Gerald Muthengi Ndatho v Peter Marigu Kirea", Case Analysis (2020). HCCCA No. 8/20 (application dated 3rd August 2020). Source: 

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