Manguo Development Company Limited & 7 others v I&m Bank Limited
The bottom line
#The Court of Appeal refused to halt the sale of Limuru Mall, ruling the developers could be compensated with money if their appeal later succeeded.
What this practically means
#Executive summary
#Key legal issues
#Arguability of the intended appeal
The applicants raised bona fide issues worth consideration, including whether the bank was in breach in calling default on sums not fully disbursed and in charging interest on the full facility during the moratorium.
The court noted the applicants' complaint that the trial court effectively determined the entire suit at interlocutory stage, and that there were arguable questions on the bank's levy of interest on the undispersed Kshs.450 million and its calling of default on an incomplete project. Arguability is met where a bona fide issue worth of consideration is raised, and the applicants met that threshold.
Whether the appeal would be rendered nugatory without a stay
The second limb failed: the applicants admitted indebtedness, the property had been sold to a third party not joined to the application, and damages would adequately compensate them.
The court observed that the applicants admitted their indebtedness and that the property was charged as security; the suit property had been sold by auction to a third party who was not joined and who would be prejudiced by the orders sought; and, the debt being undisputed, the applicants could be adequately compensated by damages if the appeal succeeded. The application was therefore dismissed.
Legal principles established
#- An applicant under rule 5(2)(b) must satisfy both the arguability limb and the nugatory-appeal limb before relief can be granted.
- Both limbs must be demonstrated; satisfying one alone is insufficient.
- An appeal is rendered nugatory where the effect of refusing a stay is irreversible, or where damages will not reasonably compensate the aggrieved party.
Court orders
#- 1.The application dated 28th October 2024 is dismissed
- 2.Costs of the application to the respondent
- On appeal from
- High Court of Kenya at Nairobi (Milimani)
- HC. COMM Case No. 6 of 2019
- Jurisdiction invoked
- Rule 5(2)(b) of the Court of Appeal Rules, 2022
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Manguo Development Company Limited & 7 others v I&m Bank Limited", Case Analysis (2025). Civil Application (Court of Appeal, Nairobi) arising from Milimani HC. COMM Case No. 6 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/1972/eng@2025-11-21
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.