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Court of AppealDismissedCivil Application NAI 279 of 2005

Tende Drive Villas Limited v David Kamau & 4 others [2005] KECA 327 (KLR)

Court of Appeal
16 December 2005
1,023 words in judgment
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The bottom line

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Kenya's Court of Appeal refused to protect a company facing eviction because its appeal was too weak, even though losing the property risked permanent damage.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (Omolo, Waki and Deverell, JJ.A.) on a single judge application under rule 5(2)(b) of the Court of Appeal Rules seeking a temporary injunction and stay of execution pending an intended appeal against the ruling of Azangalala J dated 25th July 2005 in H.C.C.C. No. 127 of 2005, which had refused Tende Drive Villas Limited interim relief restraining distress, eviction or interference with its possession of LR Nos. 3734/1141 and 3734/1143 Lavington. The High Court had applied the Giella v Cassman Brown principles, found no prima facie case with probability of success, held the anticipated loss compensable in damages, and further found the applicant undeserving of equitable relief for non-disclosure of material facts apparently designed to mislead the court. The Court of Appeal reaffirmed that the tests for stay and injunction pending appeal differ from the Giella principles: the applicant must show the intended appeal is arguable and that, absent relief, a successful appeal would be rendered nugatory. The Court accepted the nugatory argument but found, after careful consideration, that the intended appeal was not arguable, describing the learned judge's reasons as compelling. The application was therefore dismissed with costs on 16th December 2005. The ruling binds lower courts on the two-limb rule 5(2)(b) test.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the intended appeal against the ruling of Azangalala J refusing an injunction and stay is arguable
  2. 2.Whether, if the interim relief is not granted, the intended appeal, if successful, would be rendered nugatory

Key legal issues

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01

Arguability of the intended appeal under rule 5(2)(b)

Holding

The intended appeal against Azangalala J's refusal of an injunction was held to be not arguable; the applicant therefore failed the first condition precedent and the application had to be dismissed even though the nugatory limb was satisfied.

Reasoning

The Court recited the High Court's findings - no prima facie case with probability of success, loss compensable in damages, and non-disclosure of material facts designed to mislead the court. It found the Judge's reasons compelling and declined to elaborate further to avoid prejudicing the intended appeal. Because the first limb failed, the nugatory limb, which the Court accepted as valid, could not save the application.

p. 3
02

The nugatory hurdle

Holding

The Court accepted that if no interim relief were granted, the respondents could levy distress, evict the applicant or interfere with its possession of the suit property, rendering a successful appeal nugatory; the applicant passed this limb.

Reasoning

The Court reasoned that without an interim injunction or stay, nothing would prevent the respondents from levying distress or evicting the applicant pending the appeal, and that such events would cause irreparable damage making success in the appeal nugatory. It expressly held this a valid argument, but the applicant's success on this limb alone was insufficient because the arguability limb failed.

p. 2

Legal principles established

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  • The principles governing applications for stay and/or injunctions pending appeal in the Court of Appeal differ to some extent from the Giella v Cassman Brown principles applied in the superior court: the applicant must first show the intended appeal is arguable (not frivolous) and secondly show that if relief is refused the appeal, if successful, would be rendered nugatory.
  • An applicant under rule 5(2)(b) must surmount two hurdles: arguability of the intended appeal and the nugatory test; failure on either is fatal to the application.
  • An interlocutory injunction is a discretionary equitable remedy that will not be granted where the applicant's conduct does not meet the approval of a court of equity, including where there is non-disclosure of material facts.

Court orders

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  1. 1.The applicant's notice of motion dated 14th October 2005 was dismissed with costs

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

majority

Wrote the judgment

majority

Wrote the judgment

On appeal from
High Court of Kenya at Nairobi, Milimani Commercial Courts
H.C.C.C. No. 127 of 2005
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules (original jurisdiction to grant injunctions and stay of execution pending appeal)

Relief refused

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Temporary injunction and stay of execution pending appeal restraining the respondents from levying distress, evicting the applicant or interfering with its possession of LR No. 3734/1141 and 3734/1143 Lavington

The intended appeal was found not arguable; the applicant failed the first hurdle under rule 5(2)(b) despite satisfying the nugatory hurdle

p. 3

Costs

The application was dismissed with costs (costs to the respondents).

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

We therefore order that the application by Tende Drive Villas Ltd. dated 14th October 2005 be and is hereby dismissed with costs.
p. 3Final orders - dismissal of the rule 5(2)(b) application
After careful consideration we are satisfied that the intended appeal against the decision of Azangalala J is not arguable.
p. 3Arguability test
The second hurdle to be surmounted by an applicant is to show that if the application now before us is not granted, the pending appeal, if successful, will be rendered nugatory.
p. 2Nugatory principle in rule 5(2)(b) applications

Issues in the judgment

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minor

The application is described as dated 9th March 2005 in the quoted High Court passage but the Court's final order dismisses an application dated 14th October 2005, leaving ambiguity as to which application was before the Court.

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, "Tende Drive Villas Limited v David Kamau & 4 others [2005] KECA 327 (KLR)", Case Analysis (2005). Civil Application NAI 279 of 2005. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2005/327/eng@2005-12-16

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