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Court of AppealDismissedCivil Application No. 52 of 2016· [2021] KECA 956 (KLR)

Kagaari South Farmers Co-operative Society Limited & 4 Others v Bernard Mugo & 5 Others

Court of Appeal of Kenya
19 February 2021
1,174 words in judgment
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The bottom line

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The Court of Appeal dismissed a co-operative society's bid to pause a High Court ruling because the orders had already taken effect, leaving nothing left to preserve.

What this practically means

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Executive summary

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This is a single-judgment ruling of the Court of Appeal (Ouko, P., Nambuye and Kantai, JJ.A.) dismissing a Motion dated 5th August, 2016 brought by Kagaari South Farmers Co-operative Society Limited and four others under Rule 5(2)(b) of the Court of Appeal Rules. The applicants sought an injunction restraining the respondents from enforcing a High Court ruling (F. Muchemi, J., Embu, HCCC No. 4 of 2015) and a stay of proceedings and execution pending an intended appeal. Their core complaint was that the High Court wrongly assumed jurisdiction over a dispute involving members of a cooperative society, a matter they contended belonged to the Cooperative Tribunal under the Co-operative Societies Act; they also alleged bias, reliance on a stranger's affidavit, and reliance on wrong case law. The court applied the settled twin principles in Stanley Kangethe Kinyanjui v Tony Ketter & Others. It accepted that the jurisdictional point was arguable - a single bona fide arguable ground suffices and an arguable appeal need not succeed. However, the applicants failed the nugatory limb: the impugned orders, directing the applicants to take delivery of coffee beans within 14 days and to furnish minutes of an AGM, had already taken effect, and the court held it cannot stay a ruling already delivered. The application was accordingly dismissed with costs to the respondents. The binding takeaway is that both limbs of the Rule 5(2)(b) test must be satisfied and that orders already executed present nothing capable of being rendered nugatory.

Key legal issues

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01

Whether the intended appeal was arguable

Holding

The intended appeal was arguable on the jurisdictional ground that the High Court ought not to have assumed jurisdiction over a dispute involving members of a cooperative society, since the Co-operative Societies Act donates such jurisdiction to the Cooperative Tribunal.

Reasoning

The applicants intend to argue that the Judge erred in assuming jurisdiction over a dispute involving members of a cooperative society. The court noted the 1st applicant is a cooperative society and the respondents presumably its members, held that it is arguable whether the High Court was right to assume jurisdiction the Act donates to a tribunal, and, applying the principle that an arguable ground need not succeed, found the appeal arguable.

p. 2
02

Whether the intended appeal would be rendered nugatory absent stay

Holding

The applicants failed to satisfy the nugatory limb: the impugned orders had already taken effect, and no reversible loss would flow if stay or injunction were denied.

Reasoning

The orders directing the applicants to take delivery of coffee beans within 14 days, with a default clause, had taken effect; the events were more than four years old; and a ruling already delivered cannot be stayed. Having failed the second limb, the Motion had to fail.

p. 2

Legal principles established

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  • An applicant under Rule 5(2)(b) must satisfy both twin principles - that the appeal is arguable and that it would be rendered nugatory absent stay - and failure on either limb is fatal to the application.
  • A court hearing a Rule 5(2)(b) application cannot stay a ruling that has already been delivered and taken effect.

Court orders

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  1. 1.The Motion dated 5th August, 2016 is dismissed with costs to the respondents
On appeal from
High Court of Kenya at Embu
HCCC No. 4 of 2015
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules - application for stay of execution and injunction pending appeal

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, "Kagaari South Farmers Co-operative Society Limited & 4 Others v Bernard Mugo & 5 Others", Case Analysis (2021). Civil Application No. 52 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/956/eng@2021-02-19

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