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ELRCDismissedNot stated in the judgment· [2021] KEELRC 270 (KLR)

Raphael Njuguna Kuria v Seven Seas Technologies Limited; Metro Credit Limited Formerly Bobjane Credit Co Limited (Objector) [2021] KEELRC 270 (KLR)

Employment and Labour Relations Court
25 November 2021
MMM. Mbaru
1,239 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Nairobi court refused an employer's bid to pay a judgment debt in instalments and ordered it to bear the costs, confirming execution against its vehicle was lawful.

What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court at Nairobi (M. Mbaru J) determined two applications by the respondent. The first, dated 15 June 2021, sought stay of execution of a judgment on admission of Kshs. 1,192,544.95 entered on 29 March 2021, leave to liquidate the decretal sum in monthly instalments of Kshs. 50,000, and an order restraining the claimant from levying execution. The second, dated 23 August 2021, sought stay of execution and an order compelling Chador Auctioneers to return motor vehicle registration number KBW 553G, which had been proclaimed and attached on 19 August 2021 under warrants of attachment and proclamation dated 6 August 2021. The respondent contended that the decretal balance was Kshs. 1,013,528.03 plus costs, that some vehicles had been disposed of and one was held under a chattels mortgage, and that the warrants had not been served. The claimant opposed, showing that the judgment, taxation, and decree of 28 July 2021 were never stayed and that execution was lawful. The court noted that the instalment issue had already been addressed in its ruling of 29 March 2021, that the respondent had paid nothing since, and that the court stood functus officio. Any error in the judgment on admission could have been remedied under section 16 of the ELRC Act and Rule 33 of the ELRC (Procedure) Rules, 2016. Both applications were dismissed with costs to the claimant.

Key legal issues

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01

Whether the judgment sum should be payable in instalments with a stay of execution

Holding

Dismissed; the court had already determined the instalment issue in its ruling of 29 March 2021 and stands functus officio

Reasoning

The respondent had earlier proposed instalments of Ksh.20,000 per month in its reply to the application for judgment on admission, and the court's ruling of 29 March 2021 found that nothing had been paid from February 2021. The judgment was never stayed. The respondent did not pursue its June 2021 application until execution commenced. The court therefore could not revisit the instalment question, and the decree remained valid for execution.

p. 2
02

Whether the attachment and proposed sale of motor vehicle KBW 553G was lawful and whether the vehicle should be returned

Holding

Execution was valid and lawful; no order for return was made

Reasoning

The decree was issued on 28 July 2021 following taxation, and no orders were in place stopping execution. Chador Auctioneers were properly instructed and held warrants of attachment and proclamation. The respondent did not demonstrate that the attached property did not belong to it or that it lacked legal or equitable interest in it. Where attached property belongs to a third party, the respondent bears responsibility in terms of costs.

p. 2

Legal principles established

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  • A court that has delivered judgment on admission, including considering an offer to pay by instalments, becomes functus officio on the question of instalment payments
  • A party aggrieved by a judgment entered on admission must seek review under section 16 of the Employment and Labour Relations Court Act read with Rule 33 of the ELRC (Procedure) Rules, 2016

Court orders

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  1. 1.Applications dated 15th June, 2021 and 23rd August, 2021 dismissed
  2. 2.Costs of the applications awarded to the claimant
Jurisdiction invoked
Employment and Labour Relations Court Act (section 16 cited), Employment and Labour Relations Court (Procedure) Rules, 2016 (Rule 33 cited)

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, "Raphael Njuguna Kuria v Seven Seas Technologies Limited; Metro Credit Limited Formerly Bobjane Credit Co Limited (Objector) [2021] KEELRC 270 (KLR)", Case Analysis (2021). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/270/eng@2021-11-25

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