Anwarali & Brothers Limited v Kamau & another (Civil Appeal E40 of 2021) [2022] KEHC 15444 (KLR) (18 November 2022) (Ruling)
Neutral citation:
[2022] KEHC 15444 (KLR)
Republic of Kenya
Civil Appeal E40 of 2021
GV Odunga, J
November 18, 2022
Between
Anwarali & Brothers Limited
Applicant
and
Joseph Mutura Kamau
1st Respondent
Mombasa Coastline
2nd Respondent
Ruling
1.By a Notice of Motion application dated 30th of March 2022 expressed to be brought under Article 159(2)(d) of the Constitution of Kenya, Sections 1A, 3A and 79 G of the Civil Procedure Act, Order 22 Rule 22, Order 42 Rules 4, and 6, Order 51 Rule 1 and 3 of the Civil Procedure Rules, 2010, the applicant seeks the following orders, THAT;a.Spentb.Spentc.This Honourable court be pleased to order stay of execution of judgement and decree passed on 11th March 2021 by Hon. B.J Bartoo (Senior Resident Magistrate) in Machakos CMCC No. 303 of 2019 Joseph Mutura Kamau v Mombasa Coastline & Anwarali & Brothers Limited pending the hearing and determination of this Appeald.This Honourable court be pleased to order stay of execution of judgement and decree passed on 11th March 2021 by Hon. B.J Bartoo (Senior Resident Magistrate) in Machakos CMCC No. 303 of 2019 Joseph Mutura Kamau v Mombasa Coastline & Anwarali & Brothers Limited pending the hearing and determination of civil Appeal Machakos HCCA No E037 of 2022, Anwarali & Brothers Limited v Joseph Mutura Kamau & Mombasa Coastlinee.The Honourable court be pleased to allow the Appellant/ Applicant to deposit the entire decretal sum in a joint interest earning account in the names of the Appellants and the 1st Respondents advocates or to court as security for the due performance of the decretal amount pending hearing and determination of this Appealf.In the alternative, the Honourable court be pleased to allow the Appellant/ Applicant to deposit a bank guarantee as security for the due performance of the decretal amount in Machakos CMCC NO. 303 OF 2019 pending hearing and determination of this Appealg.This Honourable court be pleased to grant any other orders and/ or relief befitting the circumstances.h.Costs of the Application be provided for.
2.The same was supported by the affidavit of Christopher Mukhovi, the legal officer of Fidelity Shield Company Limited, the insurers of the subject motor vehicle, KAE 154H-ZB 7035 in which he deposed that judgment was entered against the Defendant’s jointly for Kshs 4,729,205 plus interest and costs and being dissatisfied with the judgement, have filed the instant appeal. He contended that he filed an application dated 16th April 2021 in the trial court seeking inter alia stay of execution pending hearing and determination of the appeal and the court delivered its ruling on 3rd of March 2022 directing him to pay Kshs 2,364,603 to the 1st Respondent. He contends that the appeal that is mostly on liability, if successful, the award would be less than half of the decretal sum.
3.He indicated that he has also preferred an Appeal against the ruling being Machakos HCCA No E037 of 2022, - Anwarali & Brothers Limited v Joseph Mutura Kamau & Mombasa Coastline and there is no stay of execution. He opined that both appeals have high changes of success and would be rendered nugatory if execution was to proceed. He indicated that he is willing to deposit the entire decretal sum in a joint interest earning account in the names of both advocates or in the alternative deposit a bank guarantee as security for due performance of the decretal amount pending hearing and determination of the appeal.
4.He also contended that the 1st Respondent has to date failed to demonstrate his ability to reimburse the decretal sum in the likely event that the appeal eventually succeeds.
5.In opposition of the Application, the 1st Respondent filed a replying affidavit on 8th April 2022 by Joseph Mutura Kamau in which he contends that the Application offends the provisions of the law under which it has been brought and is irretrievably defective and must fail. He stated that the Applicant is forum shopping having filed a similar application dated 16th April 2021 in which the court delivered ruling on 2nd March 2022 wherein the Applicant was ordered to release half of the decretal sum to his advocates on record and the other half be deposited in a joint interest earning account in the name of both advocates. He disclosed that the Applicant has failed to comply with the said orders and waited for the 30 days stay of execution to lapse then rushed to this court with unclean hands to shop for more interim orders.
6.In his view, if they were dissatisfied with the ruling delivered on 3rd of March 2022, the applicant ought to have sought leave to Appeal the said ruling. He contended that the issue of whether he is a man of straw was determined by the trial court ruling and therefore the same is res judicata. He disclosed that he is a businessman and a man of means and capable of refunding the said amount on notice. In his view, bank guarantees and insurance bonds are not proper securities as insurance firm and banks have gone under liquidation and collapsed leaving innocent unsuspecting public without their hard-earned savings and the Applicants should not provide the same as security.
7.The Applicant filed a supplementary affidavit on 8th June 2022 in which it was averred that that this court has the jurisdiction to hear and determine the application. According to the deponent, the decretal sum is substantial yet the 1st Respondent has not tendered any evidence whether oral or documentary to substantiate his assertion of being a man of means or his ability to reinstate the sums so ordered by the trial court should the appeal succeed. He deposed that this issue was not determined by the trial court and so the defence of Res Judicata does not apply. He maintained that he is only seeking to balance the interest of justice and proposes to deposit the entire decretal sum in court as security for the due performance of the decree and comply with the orders of the court.
8.The Application was disposed of by way of written submissions.
Appellant’s Submissions
9.The Applicant filed submissions on 8th of June 2022 and in addition to reiterating the averments in the affidavits on record relied on Order 42 Rule 6 and the case of Magnate Ventures v Simon Mutua & Another [2018] eKLR and submitted that the 1st Respondent had not provided any evidence to show that he is a person of means and able to refund such huge amounts yet the onus to prove this is on him. Further reliance was placed on the case of Firoze Nurale Hirji vs Housing Finance Company of Kenya Limited and Watts Enterprises Limited [2012] eKLR and it was submitted that it would be unfair to let the 1st Respondent enjoy fruits of a judgement appealed against simply because the appellant can afford it without determining the issues raised in the appeal.
10.On the issue of security, the Applicant relied on the case of Mpaka Road Development Limited vs. Bharat Rach & Another [2005] eKLR, and asserted that the security proposed is a sign of good faith that their insurer is ready and willing to commit to giving security in due performance of the decree. It was submitted that the application was made within time and that it was not brought in bad faith.
1st Respondent’s Submissions
11.The Respondent filed submissions on 8th of July 2022 in which counsel reiterated the contents of their Replying affidavit and further submitted that the Applicant was forum shopping for orders in order to comply with the orders they deem fit to comply with.
12.It was submitted that the application had been brought over a year judgement having been delivered on 14th of March 2021 with no explanation for the delay. The Respondent also contended that the Application offends Order 22 Rule 22 and Order 42 Rule 4 and 6 of the Civil Procedure Rules as the Applicant has not offered tangible security and has failed to comply with the orders of the court. It was disclosed that at the lower court, the Applicant submitted that the Respondent was entitled to Kshs 2,299,205 as judgment for his injuries therefore that amount was not unreasonable.
13.On security of costs, it was submitted that the applicant had not offered proper security and that he had filed similar application at the Trial court and had failed to comply with those orders. On substantial loss, it was submitted that the Respondent is capable of refunding the decretal sum which is why the Trial court was persuaded and held that half of the decretal costs be awarded to him. Reliance was placed on the case of Paul Nderitu Mwangi & Another v Jacinter Mutisya & Another (suing as the legal representatives of the estate of William Mbithi Musonzo (deceased) [2018] eKLR, Benson Mwangi Kilonxo v EWW [2022] eKLR and Bemuta Agencies Limited vJatomy Enterprises Limited & Another [2020] eKLR.
Determination
14.I have considered the Application, the Affidavits thereto and the submissions of the parties.
15.The first issue for determination is whether this application is res judicata. The Respondent contends that there was a similar application before the trial court in which a conditional stay was granted but was never complied with. That that is the position is not contested. The issue is the effect of that position on the instant application.
16.The Principles for the grant of the orders of stay are provided for under Order 42 rule 6(2) of the Civil Procedure Rules which provides as follows:
17.In Stanley Karanja Wainaina & Another v Ridon Anyangu Mutubwa [2016] eKLR, it was held that:
18.Similarly, in Patrick Kalava Kulamba & Another v Philip Kamosu and Roda Ndanu Philip (Suing as the Legal Representative of the Estate of Jackline Ndinda Philip (Deceased) [2016] eKLR it was held by Meoli, J that:
19.In arriving at its decision the Court relied on Equity Bank Limited v West Link Mbo Limited [2013] eKLR, where it was held by Githinji, JA that:
20.In his judgment Musinga, JA observed on the same question that:
21.Kiage, JA in his judgment quoted a passage from the judgment of the Court of Appeal in Gurbux Singh Suiri & Anor v Royal Credit Ltd. Civil Application NAI 281 of 1995 expounding the court’s reflection in its dictum in the Githunguri case as follows:-
22.It is therefore clear that under the said provision, whether the application for stay was granted or refused by the trial court, this court is at liberty to consider such application and to make such order thereon as it deems just. Where an order of stay is granted but any person feels aggrieved by the conditions under which the application was granted, he is not barred from invoking this Court’s original jurisdiction and seeking similar orders or having the orders made by the trial Court set aside.
23.In this case however, if I understand the parties correctly, the applicant has lodged an appeal against the order granting conditional stay. That action must be frowned upon by the Court. In this matter however, I cannot deal with that appeal and I cannot grant stay of execution pending an appeal other than the one the subject matter before me. Accordingly, prayer 4 herein is misconceived and cannot be granted.
24.In Vishram Ravji Halai v Thornton & Turpin Civil Application No. Nai. 15 of 1990 [1990] KLR 365, the Court of Appeal held that whereas the Court of Appeal’s power to grant a stay pending appeal is unfettered, the High Court’s jurisdiction to do so under Order 41 rule 6 of the Civil Procedure Rules is fettered by three conditions namely, establishment of a sufficient cause, satisfaction of substantial loss and the furnishing of security. Further the application must be made without unreasonable delay. To the foregoing I would add that the stay may only be granted for sufficient cause and that the Court in deciding whether or not to grant the stay and that in light of the overriding objective stipulated in sections 1A and 1B of the Civil Procedure Act, the Court is no longer limited to the foregoing provisions. The courts are now enjoined to give effect to the overriding objective in the exercise of its powers under the Civil Procedure Act or in the interpretation of any of its provisions. According to section 1A(2) of the Civil Procedure Act “the Court shall, in the exercise of its powers under this Act or the interpretation of any of its provisions, seek to give effect to the overriding objective” while under section 1B some of the aims of the said objective are; the just determination of the proceedings; the efficient disposal of the business of the Court; the efficient use of the available judicial and administrative resources; and the timely disposal of the proceedings, and all other proceedings in the Court, at a cost affordable by the respective parties.
25.It therefore follows that all the pre-Overriding Objective decisions must now be looked at in the light of the said provisions. This does not necessarily imply that all precedents are ignored but that the same must be interpreted in a manner that gives effect to the said objective. What is expected of the Court is to ensure that the aims and intendment of the overriding objective as stipulated in section 1A as read with section 1B of the Civil Procedure Act are attained. It is therefore important that the Court takes into consideration the likely effect of granting the stay on the proceedings in question. In other words, the Court ought to weigh the likely consequences of granting the stay or not doing so and lean towards a determination which is unlikely to lead to an undesirable or absurd outcome. What the Court ought to do when confronted with such circumstances is to consider the twin overriding principles of proportionality and equality of arms which are aimed at placing the parties before the Court on equal footing and see where the scales of justice lie considering the fact that it is the business of the court, so far as possible, to secure that any transitional motions before the Court do not render nugatory the ultimate end of justice. The Court, in exercising its discretion, should therefore always opt for the lower rather than the higher risk of injustice. See Suleiman vs. Amboseli Resort Limited [2004] 2 KLR 589.
26.The same position was adopted by Kimaru, J in Century Oil Trading Company Ltd v Kenya Shell Limited Nairobi (Milimani) HCMCA No. 1561 of 2007 where he stated that:
27.Substantial loss that was discussed in the case of Jason Ngumba Kagu & 2 Others v Intra Africa Assurance Co. Limited [2014] eKLR where it was held that:
28.This was the position of Warsame, J (as he then was) in Samvir Trustee Limited v Guardian Bank Limited Nairobi (Milimani) HCCC 795 of 1997 where he expressed himself as hereunder:
29.On the first principle, Platt, Ag. JA (as he then was) in Kenya Shell Limited v Kibiru [1986] KLR 410, at page 416 expressed himself as follows:
30.On the part of Gachuhi, Ag.JA (as he then was) at 417 held:
31.Dealing with the contention that there was no evidence that the 1st Respondent would be able to refund the decretal sum if paid over to the Respondent, Hancox, JA (as he then was) in the above cited case when he expressed himself as follows:
32.Therefore, the mere fact that the decree holder is not a man of means does not necessarily justify him being barred from benefiting from the fruits of his judgement. On the other hand, the general rule is that the Court ought not to deny a successful litigant of the fruits of his judgement save in exceptional circumstances where to decline to do so may well amount to stifling the right of the unsuccessful party to challenge the decision in the higher Court. In Machira T/A Machira & Co Advocates vs. East African Standard (No 2) [2002] KLR 63 it was held that:
33.Where the allegation is that the respondent will not be able to refund the decretal sum if paid to him in satisfaction of the decree, the burden is upon the applicant to prove that that is the position. See Caneland Ltd. & 2 Others v Delphis Bank Ltd. Civil Application No. Nai. 344 of 1999.
34.What amounts to reasonable grounds for believing that the respondent will not be able to refund the decretal sum is a matter of fact which depends on the facts of a particular case. In my view even if it were shown that the respondent is a man of lesser means, that would not necessarily justify a stay of execution as poverty is not a ground for denial of a person’s right to enjoy the fruits of his success since lack of means per se is not necessarily a ground for granting stay. As was held in Stephen Wanjohi v Central Glass Industries Ltd. Nairobi HCCC No. 6726 of 1991, financial ability of a decree holder solely is not a reason for allowing stay; it is enough that the decree holder is not a dishonourable miscreant without any form of income. Suffice to state that the respondent, at this moment, is the successful party and in order to deny him the fruits of his success, it is upon the applicant to prove that he is unlikely to make good whatever sum he may have received in the meantime.
35.In this application however, the Applicant’s basis for urging the Court to find that the application raises substantial loss is that the applicant has failed to demonstrate his ability to reimburse the decretal sum in the event that the appeal succeeds. I agree with the position adopted in Bungoma High Court Misc Application No 42 of 2011 - James Wangalwa & Another v Agnes Naliaka Cheseto that:
36.That the Respondents intend to proceed with execution is not reason enough to grant stay since being the successful litigant, he is lawfully entitled to enjoy the fruits of his judgement. Therefore, in proceeding with the execution process the Respondents are simply exercising a right which has been bestowed upon them by the law and such an exercise cannot be stayed unless good reasons are given by the Applicant.
37.In this case, the 1st Respondent has deposed that he is a businessman. He is not required to table his statement of accounts to prove his income. What he is required to prove is that that he is not a dishonourable miscreant without any form of income. The burden rests on the shoulders of the applicant to disprove his averment which in this case the applicant has failed to do.
38.In the premises I find no merit in this application which I hereby dismiss with costs to the 1st Respondent.
39.It is so ordered.
G V ODUNGAJUDGERULING READ, SIGNED AND DELIVERED IN OPEN COURT AT MACHAKOS THIS 18TH DAY OF OCTOBER, 2022M W MUIGAIJUDGEDelivered the presence of: