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ELRCPartially AllowedMilimani CMELR 1939 of 2019 (Consolidated with CMELR 1934, 1935, 1936, 1937 and 1938 of 2019)

Makini Schools Limited v Omutakha & 5 others (Cause E072 of 2023) [2023] KEELRC 2619 (KLR)

Employment and Labour Relations Court
27 October 2023
3,241 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court gave Makini School more time to appeal its redundancy ruling and blocked execution of the debt, provided the school first deposits the money in court.

What this practically means

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Executive summary

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This ruling by Abuodha Jorum Nelson of the Employment and Labour Relations Court at Nairobi, dated 27th October 2023, determined an application by Makini School seeking enlargement of time to file a memorandum and record of appeal and stay of execution of a decree arising from a judgment of Hon. E. Wanjala (PM) delivered on 26th August 2022 in consolidated Milimani CMELR causes, with final orders adopting the labour officer's computation of redundancy dues issued by Hon. R.L. Musiega on 27th March 2023. The applicant attributed the delay in appealing to internal restructuring involving changes in its board and management, during which the judgment was never handed over to the new leadership, which learnt of it on 8th May 2023 when the respondents threatened execution. The respondents opposed, contending the delay of about nine months from judgment was inordinate, the restructuring explanation unconvincing, and that stay could not lie over an unfiled appeal. The court held that the 26th August 2022 judgment was not final because it remitted computation of redundancy dues to the labour officer, whose determination was adopted in the final orders of 27th March 2023; time therefore properly ran from that date, making the 18th May 2023 application only 52 days late. The court found the restructuring explanation plausible and exercised its discretion in the applicant's favour. It granted the extension, deemed the draft memorandum of appeal filed upon payment of fees, and granted stay of execution conditional on the applicant depositing the decretal sum in Court within 30 days. Costs of the application were ordered to abide 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 the applicant should be granted extension of time to file and serve a memorandum and record of appeal
  2. 2.Whether the delay in filing the appeal was inordinate and satisfactorily explained
  3. 3.Whether an order of stay of execution of the decree pending appeal should be granted

Key legal issues

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01

The correct date from which time for filing an appeal runs

Holding

Time runs from the final orders of 27th March 2023, since the 26th August 2022 judgment remitted quantum of redundancy dues to the labour officer and was therefore not final

Reasoning

The court found that the judgment of 26th August 2022 left the computation of redundancy dues to the labour officer, whose figures were adopted in final orders on 27th March 2023. The labour office could have arrived at a different figure from the applicant's own computation, which could have been a ground of appeal; hence the applicant was prudent to await final orders before appealing.

p. 6
02

Whether the explanation for the delay (restructuring and change of board/management) sufficed

Holding

The explanation was plausible and justified exercise of discretion in favour of the applicant

Reasoning

The applicant deponed that restructuring necessitated changes in board and management, and the outgoing leadership failed to hand over or communicate the judgment to the new Regional Managing Director, who learnt of it on 8th May 2023 when the respondents' counsel threatened execution. The court found this explanation plausible enough to exercise its discretion in the applicant's favour.

p. 6
03

Whether stay of execution pending appeal should issue

Holding

Stay granted on condition that the decretal sum be deposited in Court within 30 days

Reasoning

Applying Order 42 rule 6 principles including the applicant's willingness to furnish security, the court granted stay conditional on deposit of the decretal sum in Court within 30 days, and deemed the draft memorandum of appeal filed upon payment of requisite fees.

p. 6

Legal principles established

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  • The 26th August 2022 judgment was not final; the relevant time for computing limitation for an appeal runs from the final orders of 27th March 2023 following the labour officer's computation
  • Enlargement of time is a matter of judicial discretion to be exercised judiciously, considering the reason for the delay, whether the delay is inordinate, and prejudice to the other party

Court orders

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  1. 1.Time enlarged for the applicant to file and serve a memorandum of appeal and record of appeal
  2. 2.Stay of execution of the decree granted on condition that the decretal sum be deposited in Court within 30 days of the ruling
  3. 3.The draft memorandum of appeal attached to the application deemed duly filed and served upon payment of the requisite court fees
  4. 4.Costs of the application to abide the outcome of the appeal

The bench

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

Wrote the judgment

On appeal from
Milimani Chief Magistrate's Court (Employment and Labour Relations)
Milimani CMELR 1939 of 2019 (Consolidated)
Jurisdiction invoked
Proviso to section 79G of the Civil Procedure Act; Order 50 rule 6 of the Civil Procedure Rules
Consolidated with
CMELR 1934 of 2019, CMELR 1935 of 2019, CMELR 1936 of 2019, CMELR 1937 of 2019, CMELR 1938 of 2019

Relief refused

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Order compelling the applicant to pay the respondents Kshs 88,243 directly

The court instead conditioned the stay on the applicant depositing the decretal sum in Court

p. 6

Costs

The costs of this application shall abide the outcome of the appeal

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.

This explanation sounds plausible enough to persuade the court to exercise it discretion in favour of the applicant which the Court hereby does.
p. 6Extension of time - explanation for delay
The decision of the Court that was delivered on 26th August, 2022 was not final. The labour oficer was tasked to compute the quantum of redundancy payable to the respondents.
p. 6Commencement of time for appeal - final orders
the Court hereby orders that the decretal sum herein be deposited in Court as a condition for granting the stay herein and such deposit be done within 30 days of this ruling.
p. 6Final orders - stay of execution conditional on security
The costs of this application shall abide the outcome of the appeal
p. 6Final orders - costs

Issues in the judgment

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minor

The judgment states the final orders were issued on 27th March 2023 earlier in the ruling but refers to '25th March, 2023' when adopting that date as the reckoning point

minor

The deponent averred readiness to pay Kshs 883,243 while the application sought payment of Kshs 88,243

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, "Makini Schools Limited v Omutakha & 5 others (Cause E072 of 2023) [2023] KEELRC 2619 (KLR)", Case Analysis (2023). Milimani CMELR 1939 of 2019 (Consolidated with CMELR 1934, 1935, 1936, 1937 and 1938 of 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2619/eng@2023-10-27

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