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ELRCAllowedNot stated in judgment text

Corrupgated Sheets Limited v Tsuma (Appeal E026 of 2023) [2023] KEELRC 1329 (KLR)

Employment and Labour Relations Court
25 May 2023
MMM. Mbaru
549 words in judgment
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The bottom line

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What this practically means

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Executive summary

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This is a ruling of the Employment and Labour Relations Court at Mombasa (M. Mbaru, J) delivered on May 25, 2023 on an application dated April 5, 2023 by the appellant seeking stay of execution of the judgment and consequential orders in CM ELRC No. 382 of 2020 delivered on March 9, 2023, pending the hearing and determination of an intended appeal. The appellant, through its human resource officer Evans Muigai, deponed that the lower court had awarded the respondent Ksh. 411,830.93 in terminal dues; that an arguable appeal had been lodged via notice and memorandum of appeal; and that the appellant was willing to deposit security and was financially sound. The respondent, while conceding the appellant's right of appeal, sought a conditional stay with the judgment sum deposited in a joint interest earning account, noting the company had been restructuring and declaring redundancy with no evidence of current financial standing. Both counsel made oral submissions agreeing the appellant had a right of appeal, the respondent held a valid judgment, and any stay should be secured by a deposit in a joint interest earning account. The court, invoking Section 17 of the Employment and Labour Relations Court Act, 2011 and Order 42 rule 6, granted stay of execution conditional on the appellant depositing the judgment sum (recorded as Ksh. 411,380.93) in a joint interest earning account within 14 days, failing which the stay would automatically lapse. Costs were to follow the outcome of the appeal.

Questions the Court framed

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

  1. 1.Whether stay of execution of the judgment in CM ELRC No. 382 of 2020 delivered on March 9, 2023 should be granted pending appeal
  2. 2.On what terms, including security, such stay should issue

Key legal issues

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01

Whether the court has power to grant conditional stay of execution pending appeal

Holding

Stay of execution is granted subject to deposit of the decretal sum in a joint interest earning account as security for due performance of the decree

Reasoning

The court relied on Section 17 of the Employment and Labour Relations Court Act, 2011 which gives a right of appeal, and Order 42 rule 6 which allows stay of execution subject to terms and conditions necessary to allow the appeal to be heard while securing the judgment of the trial court. Both parties' counsel agreed to a conditional stay with the decretal sum deposited in an interest earning account in joint names. The court found the submissions reasonable and practical and granted the stay on those terms.

p. 2

Legal principles established

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    Court orders

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    1. 1.Stay of execution of the judgment in CM ELRC No. 382 of 2020 delivered on March 9, 2023 granted subject to the appellant depositing the judgment sum of Ksh. 411,380.93 in a joint interest earning account held by both parties within 14 days, failing which the stay order shall automatically lapse
    2. 2.Costs shall follow the outcome of the appeal

    The bench

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

    MM
    majority

    Wrote the judgment

    On appeal from
    Chief Magistrate's Employment and Labour Relations Court (CM ELRC)
    CM ELRC No. 382 of 2020
    Jurisdiction invoked
    Section 17 of the Employment and Labour Relations Court Act, 2011 and Order 42 rule 6 of the Civil Procedure Rules

    Quotable passages

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

    Accordingly, stay of execution is allowed on the judgment in CM ELRC No.382 of 2020 delivered on March 9, 2023 subject to the appellant deposit of the judgment sum of ksh. 411,380.93 in a joint interest earning account held by both parties within the next 14 days' failure to which the stay order shall automatically lapse.
    p. 2Final orders - conditional stay of execution pending appeal
    Section 17 of the Employment and Labour Relations Court Act , 2011 which gives a right of appeal and Order 42 rule 6 with regard to allowing stay of execution of terms and conditions that are necessary to allow the court hear the appeal
    p. 2Statutory basis for jurisdiction on stay applications

    Issues in the judgment

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    material

    The decretal sum is stated inconsistently within the judgment: the award is described as Ksh. 411,830.93 but the operative order requires deposit of Ksh. 411,380.93.

    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, "Corrupgated Sheets Limited v Tsuma (Appeal E026 of 2023) [2023] KEELRC 1329 (KLR)", Case Analysis (2023). Not stated in judgment text. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1329/eng@2023-05-25

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