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High CourtAllowedNot stated in the judgment (arising from Milimani CMCC No. 10843 of 2018)· [2020] KEHC 861 (KLR)

BENSON HINGA KINYANJUI v VERSUSFRANCIS KIMEGHO NGALA

High Court of Kenya
17 December 2020
1,860 words in judgment
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The bottom line

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If you face delays or execution, showing a reasonable excuse and offering security can help you pause the legal process.

What this practically means

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Executive summary

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This High Court ruling by J. K. Sergon J, delivered online via Microsoft Teams on 17th December 2020, determined a Notice of Motion dated 16th October 2020 by the 1st, 2nd and 3rd applicants seeking a stay of execution of the judgment delivered on 6th February 2020 in Milimani CMCC No. 10843 of 2018 and leave to appeal out of time. The respondent opposed, arguing the matter had been compromised by consent reducing the award to Kshs.800,000, evidenced by a consent letter of 2nd July 2020 allegedly filed on 4th September 2020. The court found the consent letter bore no court stamp and no evidence showed it was adopted as a court order, so no compromise was established. On the merits, applying the Thuita Mwangi principles, the court held the eight-month delay was not inordinate, finding the explanation - delayed instructions, an advocate leaving the firm without handover, and Covid-19 disruptions including court closures and travel restrictions - reasonable. The draft memorandum challenging the award of general damages as manifestly excessive raised arguable points, and no prejudice to the respondent incapable of compensation by costs was shown. On stay, under Order 42 Rule 6(2), the court found substantial loss established: execution had commenced and the applicants feared being unable to recover the decretal sum if the appeal succeeded, with the evidential burden on refund capacity shifting to the silent respondent under the National Industrial Credit Bank principle. The applicants' offer to deposit the decretal sum in a joint interest-earning account was accepted as security. The Motion succeeded: 14 days' leave to appeal out of time, a conditional stay lapsing if the deposit was not made within 30 days, and costs of the application to abide the appeal.

Key legal issues

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01

Whether the matter was compromised by consent

Holding

The court found no basis to conclude the matter was compromised, as the consent letter bore no court stamp and there was no evidence it was adopted as a court order.

Reasoning

The respondent alleged the parties consented to reduce the award to Kshs.800,000 and that a consent was filed on 4th September 2020. The court examined the correspondence and the consent letter of 2nd July 2020 but found no court stamp showing receipt and no evidence of adoption as an order, and no credible evidence the decretal sum was satisfied. The applicants did not respond to this issue, but the evidential gaps meant no compromise could be established.

p. 2
02

Leave to appeal out of time

Holding

Leave granted: the eight-month delay was not inordinate, the Covid-19 pandemic and advocate handover difficulties furnished reasonable explanation, the appeal was arguable, and no prejudice to the respondent was shown.

Reasoning

Applying the Thuita Mwangi principles (length and reason for delay, arguability, prejudice), the court found the delay explained by instructions-taking, an advocate leaving the firm without handover, and Covid-19 disruptions including court closures and restricted movement. The draft memorandum challenging excessive general damages raised arguable points, and the respondent showed no prejudice incapable of compensation by costs.

p. 3
03

Stay of execution pending appeal

Holding

Stay granted on condition the applicants deposit the entire decretal sum in an interest-earning joint account within 30 days, failing which the stay lapses.

Reasoning

Under Order 42 Rule 6(2), the delay condition was already addressed; substantial loss was shown because execution had commenced and the applicants feared inability to recover the decretal sum if paid and the appeal succeeded, with no rebuttal from the respondent on refund capacity; and the applicants' offer to deposit the decretal sum in a joint interest-earning account was reasonable security.

p. 3

Legal principles established

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  • An appeal may be admitted out of time where sufficient cause is shown under Section 79G of the Civil Procedure Act, and courts may enlarge expired time under Section 95 and Order 50 Rule 5.
  • Execution is a lawful process; substantial loss must be shown by factors beyond the mere fact of execution.
  • Where an applicant reasonably fears the respondent cannot refund the decretal sum, the evidential burden shifts to the respondent to show his resources.

Court orders

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  1. 1.The applicants are granted leave of 14 days to appeal out of time
  2. 2.Stay of execution of the judgment on condition that the applicants deposit the entire decretal sum in an interest earning account held in the joint names of the parties' advocates and/or firms of advocates within 30 days, failing which the stay automatically lapses
  3. 3.Costs of the application to abide the outcome of the appeal

Authorities

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Legislation

  • Civil Procedure ActSection 79G
  • Civil Procedure ActSection 95
  • Civil Procedure RulesOrder 50, Rule 5
  • Civil Procedure RulesOrder 42, Rule 6(2)

Cases cited (4)

  • Thuita Mwangi v Kenya Airways Limited
    [2003] eKLR

    Principles for extension of time/leave to appeal out of time: length and reason for delay, arguability, prejudice.

  • Growth Africa (K) Limited & another v Charles Muange Milu
    [2019] eKLR

    Reaffirmation of the extension-of-time principles.

  • James Wangalwa & Another v Agnes Naliaka Cheseto
    [2012] eKLR

    Substantial loss entails factors showing execution will irreparably affect or negate the essential core of the applicant as successful party.

  • National Industrial Credit Bank Ltd v Aquinas Francis Wasike & another
    [2006] eKLR

    Evidential burden shifts to respondent to show resources once applicant reasonably fears inability to refund the decretal sum.

On appeal from
Chief Magistrate's Court, Milimani Commercial Courts
CMCC No. 10843 of 2018
Jurisdiction invoked
Sections 79G and 95 of the Civil Procedure Act and Order 50 Rule 5 and Order 42 Rule 6(2) of the Civil Procedure Rules (appellate/stay jurisdiction over a subordinate court decision)

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, "BENSON HINGA KINYANJUI v VERSUSFRANCIS KIMEGHO NGALA", Case Analysis (2020). Not stated in the judgment (arising from Milimani CMCC No. 10843 of 2018). Source: 

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