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Court of AppealAllowedNakuru Civil Application (Rule 5(2)(b)) arising from Nakuru Employment and Labour Relations Court Cause No. E005 of 2023· [2024] KECA 1800 (KLR)

Standard Chartered Bank Limited v Stephen Tajeu Moloi

Court of Appeal of Kenya
18 December 2024
1,807 words in judgment
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The bottom line

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Kenya's Court of Appeal has paused an employment ruling that ordered Standard Chartered Bank to reinstate a former teller, until the bank's appeal is heard.

What this practically means

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Executive summary

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Standard Chartered Bank Limited applied to the Court of Appeal at Nakuru under Sections 3A and 3B of the Appellate Jurisdiction Act and Rule 5(2)(b) of the Court of Appeal Rules, 2022, for stay of execution of a judgment of Wasilwa J. delivered on 26th September 2024 in Nakuru Employment and Labour Relations Court Cause No. E005 of 2023. The trial court had found that the bank failed to prove authentic evidence that the respondent, a former teller and universal banker, had voluntarily resigned, and ordered that he continue serving in the same or a re-engaged capacity without loss of benefits. The bank argued that the learned Judge failed to justify the extraordinary remedy of re-engagement, disregarded the fiduciary nature of the respondent's role, and violated its constitutional rights, and that the respondent's position had since been filled. The respondent opposed, contending that he had already been reinstated and sent on leave, rendering the application overtaken by events. Applying the settled twin principles from Reliance Bank Ltd (In Liquidation) vs. Norlake Investments Ltd, the court found the intended appeal arguable and held that the application was not overtaken by events, since allowing the reinstatement to subsist would render the appeal nugatory, while the respondent could be reinstated or compensated if the appeal failed. The court allowed the application, stayed execution of the judgment pending the intended appeal, and ordered each party to bear its own costs. The decision is a single judgment of a three-judge bench.

Key legal issues

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01

Arguability of the intended appeal

Holding

The grounds urged by the applicant, including the failure to justify the extraordinary order of re-engagement and the Article 36 servitude argument, were arguable.

Reasoning

The court declined to go into the merits, which are for the appeal bench. It found that the grounds raised, including the contention that the trial judge failed to enumerate exceptional circumstances justifying re-engagement and the trust-and-confidence point, were arguable. Notably, the respondent's own citation of arguable grounds reinforced rather than defeated the application, since a respondent must demonstrate the appeal is not arguable.

p. 3
02

Nugatory aspect and whether the application was overtaken by events

Holding

The application was not overtaken by events; allowing reinstatement to subsist would render the appeal nugatory, and the respondent could be reinstated or compensated if the appeal failed.

Reasoning

Although the respondent had been reinstated and sent on leave, the court held that the central question on appeal is whether the reinstatement was proper, so leaving it intact would render the appeal nugatory. Conversely, if the appeal failed, the respondent could be reinstated with full benefits or compensated by damages, and it was not shown the bank could not reinstate him or pay benefits.

p. 4

Legal principles established

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  • An applicant under Rule 5(2)(b) must satisfy two requirements: an arguable appeal and that the appeal would be rendered nugatory if stay is refused.
  • Where reinstatement has already been effected subject to the outcome of an appeal, an order allowing the reinstatement to subsist pending appeal renders the appeal nugatory, so stay may properly issue.

Court orders

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  1. 1.Stay of execution of the judgment delivered on 26th September 2024 (Wasilwa J.) in Nakuru Employment and Labour Relations Court Cause No. E005 of 2023 pending the hearing and determination of the applicant's intended appeal
  2. 2.Each party to bear its own costs of the application
On appeal from
Employment and Labour Relations Court, Nakuru
Cause No. E005 of 2023
Jurisdiction invoked
Sections 3A and 3B of the Appellate Jurisdiction Act and Rule 5(2)(b) of the Court of Appeal Rules, 2022

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, "Standard Chartered Bank Limited v Stephen Tajeu Moloi", Case Analysis (2024). Nakuru Civil Application (Rule 5(2)(b)) arising from Nakuru Employment and Labour Relations Court Cause No. E005 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/1800/eng@2024-12-18

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