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Court of AppealAllowedCivil Application No. 135 of 2010

Athi Water Services Board v Nairobi City Water & Sewerage Company [2010] KECA 139 (KLR)

Court of Appeal
30 July 2010
1,568 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal paused High Court orders against Athi Water Services Board because the appeal raised real issues that could become meaningless if enforcement proceeded.

What this practically means

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Executive summary

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This was an interlocutory application under rule 5(2)(b) of the Court of Appeal Rules by Athi Water Services Board seeking a stay of execution and a stay of proceedings pending an intended appeal against orders of Gacheche, J of the High Court dated 25th May 2010. The High Court had granted Nairobi City Water & Sewerage Company leave to apply for judicial review, including certiorari to quash the applicant's decision in two letters dated 19th May 2010 sending two of the respondent's employees on compulsory leave, prohibition against named persons acting as managing and financial directors, and prohibition against negotiations for a new Service Agreement; the leave was ordered to operate as a stay. The applicant argued the appeal was arguable on grounds that the judge dispensed with the mandatory notice to the Registrar under Order LIII, granted a de facto mandatory injunction, ignored the respondent's lack of locus standi, and overlooked that a contract of employment was a private-law matter unsuited to judicial review. The respondent conceded one arguable point on the dispensation of notice but argued the appeal would not be rendered nugatory. Applying the Silverstein vs Chesoni twin tests, the court found the appeal arguable and not frivolous, and that it would be rendered nugatory without a stay. It granted both a stay of execution of the orders of 25th May 2010 and a stay of proceedings in the High Court Miscellaneous Application, with costs in the intended appeal. The judgment binds lower courts on the rule 5(2)(b) requirements.

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 is arguable and not frivolous
  2. 2.Whether the intended appeal would be rendered nugatory unless a stay of execution and a stay of proceedings are granted pending its hearing and determination

Key legal issues

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01

Whether the intended appeal was arguable

Holding

The court found the appeal arguable, noting the respondent itself conceded at least one arguable point regarding dispensation of the mandatory notice to the Registrar under Order LIII.

Reasoning

The applicant raised grounds including the judge proceeding ex parte without mandatory notice under rule 1(3) of Order LIII, the granting of what was in substance a mandatory injunction under the guise of a stay, the respondent's lack of locus standi, and the inappropriateness of judicial review for a contract of employment as a private-law matter. The respondent conceded the notice point. On this basis the appeal was not frivolous.

p. 3
02

Whether the intended appeal would be rendered nugatory without a stay

Holding

The court held the nugatory test satisfied, citing possible irregular service of the named employees as directors and potential disruption of Nairobi's water supply.

Reasoning

The court accepted that if the order of 25th May 2010 were enforced, the respondent's named employees would have irregularly served as managing and financial directors, and that enforcement obtained, as the applicant alleged, irregularly and in abuse of court process would prejudice the applicant and the general public. It therefore concluded the appeal would be rendered nugatory if no stay were granted.

p. 3

Legal principles established

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  • An applicant for a stay under rule 5(2)(b) must satisfy both the arguability of the intended appeal and that it would be rendered nugatory absent a stay.
  • A stay does not reverse, annul, undo or suspend what has already been done.
  • An arguable appeal is one which is not frivolous; conclusive views on the merits are not expressed at the stay stage.

Court orders

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  1. 1.Stay of execution of the orders of the superior court issued on 25th May 2010 pending the filing and determination of the intended appeal
  2. 2.Stay of proceedings in relation to High Court Miscellaneous Application No. 195 of 2010 pending the determination of the intended appeal
  3. 3.Costs of the application to be in the intended appeal

The bench

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

majority
majority
majority
On appeal from
High Court of Kenya at Nairobi
H.C. Misc. Appl. No. 195 of 2010
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

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 see that the applicant has shown the intended appeal would be rendered nugatory if no stay is granted and accordingly we grant a stay of execution of the orders of the superior court issued on 25th May 2010 pending the filing and determination of the intended appeal.
p. 3Final orders - stay of execution granted
We also grant a stay of proceedings in relation to High Court Miscellaneous application No 195 of 2010 pending the determination of the intended appeal and order that the costs of this application be in the intended appeal.
p. 3Final orders - stay of proceedings and costs
An applicant seeking a stay under rule 5 (2) (b) of the Court's Rules has to satisfy the Court that his intended appeal was arguable, that is, that the intended appeal was not frivolous, and that unless the order of stay were granted, the intended appeal if successful, would be rendered nugatory. Both requirements have to be proved.
p. 3Rule 5(2)(b) twin requirements
We are, however, alive to the fact that the time to express conclusive views on any matter in an application such as this is not at this stage, but at the hearing of the intended appeal.
p. 3Scope of the stay stage

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, "Athi Water Services Board v Nairobi City Water & Sewerage Company [2010] KECA 139 (KLR)", Case Analysis (2010). Civil Application No. 135 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2010/139/eng@2010-07-30

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