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Court of AppealPartially AllowedCivil Application No. 59 of 2010

George Gitau Wainaina v Kenya Commercial Bank Ltd & 2 others [2010] KECA 241 (KLR)

Court of Appeal
11 June 2010
1,422 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~6 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal stopped KCB from selling disputed land pending appeal, confirming you cannot seek a stay of a decision that was dismissed.

What this practically means

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Executive summary

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This is a ruling of a three-judge bench of the Court of Appeal at Nairobi on an application under rule 5(2)(b) of the Court of Appeal Rules by Dr. George Gitau Wainaina, seeking stay of execution of a ruling of the High Court at Machakos (Lenaola, J.) dated 5th February 2010 in HCCC No. 113 of 2009, together with a temporary injunction restraining the respondents from alienating land parcel Kajiado/Kaputiei-North/4302, pending an intended appeal. The High Court had dismissed the applicant's injunction application filed under Order XXXIX of the Civil Procedure Rules, which sought to restrain the 1st respondent, Kenya Commercial Bank Ltd, from exercising its statutory power of sale over land charged by the 2nd respondent to secure a loan. The dispute arose from an arrangement whereby the applicant was to purchase the charged properties by private treaty to offset the loan. At the hearing, counsel for the applicant abandoned the prayer for stay of execution, the court noting its settled position that a dismissed suit or application leaves no orders capable of enforcement. On the injunction prayer, the court found the intended appeal arguable - noting the applicant's payment of Kshs.5 million, the unexplained release of one charged property while the suit property was withheld, and the alleged failure of the learned Judge to consider a supplementary affidavit. The court was also not satisfied that the 2nd respondent had adequate resources to satisfy damages, so the nugatory limb was met. The court granted the temporary injunction and directed that the status quo as at the time of the superior court order be maintained pending the appeal, with costs of the application in the intended appeal. The application was partially allowed: stay was refused as abandoned, and the injunction was granted.

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, if the injunction is refused, the intended appeal would be rendered nugatory
  3. 3.Whether an order of temporary injunction should issue pending the hearing and determination of the intended appeal

Key legal issues

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01

Availability of stay of execution where the order below is a dismissal

Holding

Stay of execution of a dismissed application cannot issue because there is nothing to enforce; the applicant correctly abandoned that prayer.

Reasoning

The court noted its consistent precedent that a dismissal leaves no order capable of enforcement, so stay under rule 5(2)(b) is conceptually unavailable. Counsel for the applicant appreciated this and abandoned prayer 1, leaving only the injunction prayer for determination.

p. 3
02

Arguability of the intended appeal

Holding

The intended appeal was arguable: the applicant's payment of Kshs.5 million, the unexplained release of one charged property while the other was withheld, and the alleged failure to consider the supplementary affidavit raised issues fit for the appeal court.

Reasoning

The court found that the 2nd respondent's submissions did not address the applicant's payment, and the 1st respondent did not explain why one charged property (No. 4303) was released while the suit property (No. 4302) was not. Arguability does not mean the appeal must succeed, only that it is not frivolous.

p. 3
03

Whether the appeal would be rendered nugatory without an injunction

Holding

The nugatory limb was satisfied because the 2nd respondent may not have adequate resources to pay damages if the appeal later succeeds and the property is sold.

Reasoning

The 1st respondent argued damages would be an adequate remedy, but the court was not satisfied that the 2nd respondent, in particular, had adequate resources to satisfy a damages award. A sale of the charged land would therefore render a successful appeal nugatory, justifying preservation by injunction.

p. 3

Legal principles established

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  • When a suit or application is dismissed, there are no orders made by the Court which would call for enforcement, and therefore stay of execution of a dismissal is not available
  • An applicant under rule 5(2)(b) must satisfy both limbs: an arguable appeal (one that is not frivolous) and that the appeal would be rendered nugatory if the order sought is not granted

Court orders

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  1. 1.Prayer 1 (stay of execution) was abandoned by the applicant and was not granted
  2. 2.Temporary injunction granted in terms of prayer 2 restraining the respondents from selling, disposing, transferring, advertising for sale or otherwise alienating land parcel number Kajiado/Kaputiei-North/4302
  3. 3.Status quo as at the time of the superior court order to be maintained until the hearing and determination of the intended appeal, or until further orders of the Court
  4. 4.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 Machakos
H.C.C.C. No. 113 of 2009
Jurisdiction invoked
rule 5(2)(b) of the Court of Appeal Rules

Relief refused

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Stay of execution of the ruling and order of the High Court (prayer 1)

Counsel for the applicant abandoned this prayer, as a dismissed application leaves no orders capable of enforcement

p. 3

Costs

Costs of the application shall be in the intended appeal.

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.

when a suit or application is dismissed, there are no orders made by the Court which would call for enforcement
p. 3Unavailability of stay of execution of a dismissal
we are convinced that the applicant has shown he has an arguable appeal. We are not saying such an arguable appeal is one which must succeed but that the intended appeal is not frivolous.
p. 3Test for arguability under rule 5(2)(b)
We grant the order sought in prayer 2 of the application dated 22nd March, 2010 and direct that the status quo as at the time of the superior court order be maintained until the hearing and determination of the intended appeal, or until further orders of the Court. Costs of the application shall be in the intended appeal.
p. 3Final orders and costs

Issues in the judgment

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minor

The application is described as filed in Court on 25th March 2010, but the court grants 'the order sought in prayer 2 of the application dated 22nd March, 2010' - an internal discrepancy in the application date.

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, "George Gitau Wainaina v Kenya Commercial Bank Ltd & 2 others [2010] KECA 241 (KLR)", Case Analysis (2010). Civil Application No. 59 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2010/241/eng@2010-06-11

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