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Court of AppealDismissedCivil Appeal (Application) No. 91 of 2020

Mukhisa Kituyi v Patrick Mweu Musimba [2020] KECA 187 (KLR)

Court of Appeal
20 November 2020
1,993 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Court of Appeal refused to stop execution of a Kshs. 35 million judgment, ruling that having to pay a money decree does not by itself make an appeal pointless.

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 on an application under Rule 5(2)(b) of the Court of Appeal Rules by H.E. Dr. Mukhisa Kituyi seeking stay of execution of the decree of the High Court (Okwany, J.) dated 11th December 2019 in H.C.C.C No. E110 of 2018. The High Court had struck out the applicant's defence and entered judgment for the respondent of Kshs. 35,000,000, holding that the defence that the sum was a forfeited deposit for the purchase of L.R No. 194/34, Karen, failed for want of a written sale agreement under Section 3(3) of the Law of Contract Act and particulars under Order 7 Rule 5 of the Civil Procedure Rules. The applicant argued the appeal was arguable and would be rendered nugatory if the decree were executed, while the respondent contended the applicant bore the burden of proof and was guilty of inordinate delay. Applying the settled twin principles for Rule 5(2)(b) relief, the court found the appeal arguable, since the loan-versus-deposit question raised a triable issue. However, on the nugatory limb, the court held that the applicant had not demonstrated that the respondent would be unable to refund the decretal amount if the appeal succeeded; execution is a natural consequence of judgment and does not by itself render an appeal nugatory. The application was accordingly dismissed with costs. The decision does not disturb the High Court ruling; it is confined to the stay application, though the substantive appeal remains pending before the court.

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
  2. 2.Whether the appeal would be rendered nugatory if stay of execution is not granted

Key legal issues

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01

Arguability of the intended appeal

Holding

The appeal was arguable; the question whether the sum paid was a loan or a deposit for purchase of land raised a triable issue warranting ventilation in the appeal.

Reasoning

The court cautioned itself against making definitive findings on the merits, since the appeal itself was not before it. On reviewing the memorandum of appeal, it was satisfied that the loan-versus-deposit question was a triable issue deserving full consideration by the court in the substantive appeal, thus satisfying the first limb of the Rule 5(2)(b) test.

p. 2
02

Whether the appeal would be rendered nugatory if stay is denied

Holding

The applicant failed to demonstrate nugatory aspect; the decree is a money decree and no allegation was made that the respondent would be unable to refund if the appeal succeeds.

Reasoning

Apart from asserting nugatory-ness, the applicant did not demonstrate how the appeal would be defeated. With a money decree, the applicant neither established nor alleged that the respondent was impecunious or incapable of refunding the amount. Execution is a natural consequence of judgment and, without demonstration of irreversible injury or hardship, does not establish nugatory-ness.

p. 3

Legal principles established

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  • An applicant under Rule 5(2)(b) must establish both that the appeal is arguable and that it would be rendered nugatory if the orders sought are not granted.
  • For a money decree, mere execution does not render an appeal nugatory absent demonstration that the respondent cannot refund the decretal amount.

Court orders

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  1. 1.The application dated 22nd April, 2020 is dismissed with costs

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.C.C No. E110 of 2018
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

Relief refused

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Stay of execution of the decree of the High Court dated 11th December, 2019 pending the hearing and determination of the appeal

The applicant failed to establish the twin principles for grant of stay under Rule 5(2)(b); the appeal was found arguable but the applicant did not demonstrate that it would be rendered nugatory

p. 3

Costs

The application is dismissed with costs (costs to the respondent).

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.

An applicant must establish firstly, that the intended appeal or appeal in question is arguable and secondly, the appeal or intended appeal would be rendered nugatory if the orders sought are not granted.
p. 2Twin principles for stay under Rule 5(2)(b)
Therefore, execution by itself without demonstration of any injury or hardship which would be incapable of being reversed if the appeal is successful, is not sufficient to establish that an appeal would be rendered nugatory in the event it succeeds.
p. 3Nugatory aspect for money decrees
Accordingly, the applicant having failed to establish the twin principles for the grant of an order of stay of execution, we find that the application dated 22nd April, 2020 lacks merit and is hereby dismissed with costs.
p. 3Final orders - dismissal

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, "Mukhisa Kituyi v Patrick Mweu Musimba [2020] KECA 187 (KLR)", Case Analysis (2020). Civil Appeal (Application) No. 91 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/187/eng@2020-11-20

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