Nzoia Sugar Company Limited v Nobert Muhoro Ikundo Mwanyalo [2020] eKLR Case Summary

Court
Court of Appeal at Kisumu
Category
Civil
Judge(s)
W. Karanja, Asike-Makhandia, Gatembu Kairu
Judgment Date
October 09, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the case summary of Nzoia Sugar Company Limited v Nobert Muhoro Ikundo Mwanyalo [2020] eKLR. Understand key legal insights and implications of the judgment.

Case Brief: Nzoia Sugar Company Limited v Nobert Muhoro Ikundo Mwanyalo [2020] eKLR

1. Case Information:
- Name of the Case: Nzoia Sugar Company Limited v. Nobert Muhoro Ikundo Mwanyalo
- Case Number: Civil Application No. 154 of 2019
- Court: Court of Appeal at Kisumu
- Date Delivered: 9th October 2020
- Category of Law: Civil
- Judge(s): W. Karanja, Asike-Makhandia, Gatembu Kairu
- Country: Kenya

2. Questions Presented:
The central legal issues presented before the court include whether the intended appeal by Nzoia Sugar Company Limited is arguable and whether the execution of the Employment and Labour Relations Court's judgment should be stayed pending the appeal.

3. Facts of the Case:
Nzoia Sugar Company Limited (the applicant) sought a stay of execution regarding a judgment delivered by the Employment and Labour Relations Court (ELRC) on 4th November 2019. In that judgment, the court dismissed the claim of Nobert Muhoro Ikundo Mwanyalo (the respondent) regarding unlawful and unfair termination of employment but awarded him Kshs. 3,655,573.48 for salary arrears, interest, and costs. The applicant filed a notice of appeal on 8th November 2019, contesting the judgment.

4. Procedural History:
The applicant filed an application for stay on 28th November 2019, asserting that the intended appeal was arguable and that the execution of the judgment would render the appeal nugatory. The respondent was served but did not submit any replying affidavit or submissions. The court considered the application and the supporting affidavit from the applicant's acting Company Secretary, Ritah Mukhongo.

5. Analysis:
- Rules: The court referenced the legal standard for granting a stay of execution, which requires the applicant to demonstrate that the appeal is arguable and that failure to stay would render the appeal nugatory (as established in Co-operative Bank of Kenya Limited v. Banking Insurance & Finance Union (Kenya) [2015] eKLR).

- Case Law: The court cited China Road & Bridge Corporation (K) Ltd v. African Gas & Oil Co. Ltd & 3 others [2016] eKLR, emphasizing that an arguable appeal does not need to be one that is guaranteed to succeed, but rather one deserving of full consideration. It also referenced National Environment & Management Authority v. Edward Juma Masakha [2015] eKLR, which placed the burden on the respondent to demonstrate the ability to refund the judgment amount if the appeal were successful.

- Application: The court found that the appeal was indeed arguable, particularly regarding the issue of whether the ELRC considered evidence that the respondent's academic credentials were forged. Additionally, the court noted the respondent's threats to execute the decree and the applicant's claim that the respondent could not refund the judgment amount if the appeal succeeded, supporting the argument for a stay of execution.

6. Conclusion:
The Court of Appeal granted the application for a stay of execution of the ELRC's judgment pending the determination of the appeal. The court ruled that the intended appeal was arguable and that the execution of the judgment would render the appeal nugatory.

7. Dissent:
There were no dissenting opinions noted in the ruling, as all judges agreed on the decision to grant the stay of execution.

8. Summary:
The Court of Appeal's decision to grant a stay of execution in the case of Nzoia Sugar Company Limited v. Nobert Muhoro Ikundo Mwanyalo underscores the importance of ensuring that an appeal is not rendered ineffective by premature execution of a judgment. The ruling highlights the criteria for a stay, emphasizing the need for an arguable appeal and the potential consequences of executing a judgment that may later be overturned. This case sets a precedent for future applications regarding stays of execution in similar circumstances.

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