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Court of AppealDismissedCivil Application No. Nai. 307 of 2018· [2018] KECA 58 (KLR)

James Ndungu Gethenji & 3 others v Gitahi Gethenji & 3 others

Court of Appeal
20 December 2018
2,059 words in judgment
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The bottom line

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Kenya's Court of Appeal refused to freeze a bank account dispute stay because the applicants never filed a notice of appeal against that specific order.

What this practically means

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Executive summary

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This was an application under rule 5(2)(b) of the Court of Appeal Rules seeking to stay a ruling of the High Court of Kenya at Nairobi (Makau J.) dated 25th October 2018 in HC Petition No. E105 of 2018. The High Court had issued an interlocutory injunction restraining the applicants from interfering with the 4th applicant's general meeting scheduled for 27th October 2018 and had declined to discharge an earlier order of 17th October 2018 freezing the Nominal Respondent's NIC Bank account, holding there was no formal application before it to enable a proper response. Before the Court of Appeal, counsel conceded that prayers 3 and 4 (relating to the general meeting) had been overtaken by events since the meeting was not held. The Court confined itself to the remaining prayer seeking a stay of the freezing order. Applying its settled jurisdictional rule, the Court held that its power under rule 5(2)(b) flows from an appeal or notice of appeal in respect of which the specific relief is sought. The applicants' Notice of Appeal challenged only the ruling of 25th October 2018; no notice of appeal was filed against the freezing order of 17th October 2018, so the Court lacked jurisdiction to stay it. The Court also held it premature to determine issues on discharge of the freezing order since the High Court had invited a formal application, and interlocutory orders must not decide the parties' rights. The Court dismissed the Notice of Motion and ordered each party to bear its/his/her own costs.

Key legal issues

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01

Jurisdiction to grant stay under rule 5(2)(b) in the absence of a notice of appeal against the order to be stayed

Holding

The application fails because the applicants filed no Notice of Appeal against the 17th October 2018 freezing order; a notice of appeal against the later ruling of 25th October 2018 cannot support a stay of the earlier order.

Reasoning

The Court of Appeal's jurisdiction under rule 5(2)(b) flows from an appeal or notice of appeal in respect of which the specific relief is sought. The freezing order was made on 17th October 2018 and the applicants filed no notice of appeal against it; the notice upon which they moved challenged only the ruling of 25th October 2018, which merely declined to discharge the earlier order and urged the applicants to file a formal application in the High Court. A stay of an order with no notice of appeal against it cannot be granted.

02

Character of the ruling of 25th October 2018 - positive order or negative order

Holding

The ruling was not a positive order commanding anyone to do anything; it simply declined to discharge the interim freezing order as premature, without a formal application, and directed the applicants to make such an application before the High Court.

Reasoning

The judge gave reasons for declining to discharge the freezing order, holding that discharging it without a formal application would prejudice the respondents who had not had an opportunity to reply, and that the interim orders were made inter partes. Rather than file a formal application to discharge the freezing order before the High Court, the applicants came to the Court of Appeal; the Court held it premature to determine issues relating to discharge of the freezing order, as such an application may determine all pending issues.

p. 3
03

Effect of prayers overtaken by events

Holding

Prayers 3 and 4, seeking to restrain interference with the general meeting scheduled for 27th October 2018, were spent because the meeting was not held, and the Court made no order in relation to them.

Reasoning

Both applicants' and respondents' counsel conceded that prayers 3 and 4 of the motion had been overtaken by events since the general meeting of 27th October 2018 never took place. The Court therefore made no order on those prayers and confined itself to the remaining prayer concerning the bank account freezing order.

p. 3

Legal principles established

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  • The filing of a notice of appeal is what confers jurisdiction on the Court of Appeal to grant stay, injunction or stay of proceedings under rule 5(2)(b); a stay can only be sought in respect of an order against which a notice of appeal has been filed.
  • If no notice of appeal has been lodged against a particular order, no order can be obtained under rule 5(2)(b) in respect of that order.
  • In interlocutory applications the orders sought should not decide the rights and obligations of the parties but only keep matters in status quo pending determination.

Court orders

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  1. 1.No order made in relation to prayers 3 and 4 of the Notice of Motion, which were conceded to have been overtaken by events
  2. 2.Dismissal of the applicants' Notice of Motion dated 25th October 2018
  3. 3.Each party to bear its/his/her own costs
On appeal from
High Court of Kenya at Nairobi
HC Petition No. E105 of 2018
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

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, "James Ndungu Gethenji & 3 others v Gitahi Gethenji & 3 others", Case Analysis (2018). Civil Application No. Nai. 307 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/58/eng@2018-12-20

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