Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Application (rule 5(2)(b)) - application dated November 30, 2023

Kay Construction Company Limited v Consultants (Civil Application E569 of 2023) [2024] KECA 1 (KLR)

Court of Appeal
19 January 2024
794 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~3 min to read original · ~4 min brief

The bottom line

#

The Court of Appeal dismissed Kay Construction's attempt to halt enforcement of a Kshs 142 million award, ruling it cannot stay orders that require nobody to do anything.

What this practically means

#

Executive summary

#
This was a single application before the Court of Appeal at Nairobi under rule 5(2)(b) of the Court of Appeal Rules by Kay Construction Company Limited, seeking to stay execution of a ruling delivered by the High Court (Majanja, J.) in HCCC No. 60 of 2016 on October 31, 2023, and of the judgment in the same suit delivered on March 25, 2022. The background was that the respondent, the applicant's consultant in arbitration proceedings with the Office of the President (Department of Defence), obtained a judgment obliging the applicant to pay Kshs 142,234,965.60, being 15% of the arbitrator's award of Kshs 335,605,244.69. After commencement of execution, the applicant sought stay of execution and review; the High Court dismissed both applications with costs on October 31, 2023, prompting a notice of appeal. Before the Court of Appeal, the applicant argued that the appeal was arguable, execution was premature pending Government payment, and the amount claimed in execution exceeded what was properly due. The respondent did not participate despite service. Applying the twin principles that an applicant must show an arguable appeal and that it would be rendered nugatory absent a stay, the court held that the October 31, 2023 ruling was a negative order incapable of stay except as regards costs, and that, the applicant having conceded there was no appeal or notice of appeal against the March 25, 2022 judgment, the court had no jurisdiction to stay its execution. The application was dismissed with no orders as to costs, given the respondent's non-participation.

Questions the Court framed

#

The issues the Court set itself to decide, in its own words.

  1. 1.Whether the intended appeal is arguable
  2. 2.Whether, if successful, the appeal would be rendered nugatory absent a stay
  3. 3.Whether a negative ruling dismissing stay and review applications is capable of being stayed
  4. 4.Whether the court has jurisdiction to stay execution of the judgment of March 25, 2022 in the absence of an appeal or notice of appeal against it

Key legal issues

#
01

Whether the ruling of October 31, 2023 can be stayed

Holding

It cannot, save as to costs, because it merely dismissed the applicant's applications without imposing any obligation.

Reasoning

The ruling dismissed the applicant's applications for stay of execution and review. Apart from the award of costs, it directed no party to do or refrain from doing anything. A negative order of that nature leaves no executable or enforceable obligation capable of being stayed, so the threshold for a stay under rule 5(2)(b) cannot be met against such a decision.

p. 2
02

Whether the court can stay execution of the judgment of March 25, 2022

Holding

It cannot; the applicant conceded there was no appeal or notice of appeal against that judgment, depriving the court of jurisdiction.

Reasoning

Counsel for the applicant conceded that no appeal or notice of appeal existed in relation to the March 25, 2022 judgment. Since the court's jurisdiction under rule 5(2)(b) presupposes an intended appeal, the absence of any appeal or notice of appeal meant the application to stay that judgment fell outside the court's jurisdiction and had to fail on that ground alone.

p. 2
03

Whether the twin principles of rule 5(2)(b) were satisfied

Holding

They were not; the application was dismissed as devoid of merit.

Reasoning

Applying the principles from Stanley Kangethe Kinyanjui v Tony Ketter, the court held the applicant had not demonstrated an arguable appeal, nor that it would be rendered nugatory absent a stay. The application failed on both limbs, compounded by the lack of jurisdiction over the judgment itself and the negative nature of the ruling sought to be stayed.

p. 2

Legal principles established

#
  • An applicant for stay under rule 5(2)(b) must demonstrate that the appeal is arguable and that it will be rendered nugatory if stay is not granted.
  • A negative order - a ruling dismissing applications without requiring a party to do or refrain from doing anything - is incapable of stay except as regards costs.
  • The Court of Appeal has no jurisdiction under rule 5(2)(b) to stay execution of a judgment against which no appeal or notice of appeal has been filed.

Court orders

#
  1. 1.The applicant's application dated November 30, 2023 is dismissed
  2. 2.No orders as to costs, the respondent having not participated in the application

The bench

#

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

Mohamed Abdulahi Warsame
M. WarsameJA
Currently serving
majority
majority
majority
On appeal from
High Court
HCCC No. 60 of 2016
Jurisdiction invoked
rule 5(2)(b) of the Court of Appeal Rules (single Judge/panel application for stay of execution pending appeal)

Relief refused

#

Stay of execution of the High Court ruling delivered October 31, 2023

The ruling was a negative order, only capable of stay as regards costs

p. 2

Stay of execution of the High Court judgment delivered March 25, 2022

No appeal or notice of appeal had been filed against that judgment, so the court lacked jurisdiction

p. 2

Costs

No orders as to costs, as the respondent did not participate in the application.

Quotable passages

#

Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

It is a negative order incapable of stay except as regards the award of costs.
p. 2Negative orders incapable of stay
the applicant must demonstrate that the appeal or intended is arguable and secondly that the appeal, if successful, should not be rendered nugatory
p. 2Twin principles for rule 5(2)(b) applications
The applicant’s application dated November 30, 2023 is devoid of merit and is hereby dismissed. We make no orders as to costs as the respondent did not participate in the application.
p. 2Final orders and costs

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Kay Construction Company Limited v Consultants (Civil Application E569 of 2023) [2024] KECA 1 (KLR)", Case Analysis (2024). Civil Application (rule 5(2)(b)) - application dated November 30, 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/1/eng@2024-01-19

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