Justine Ng’ang’a Ngaruiya v Peter Gitau Njugi & another [2020] eKLR Case Summary

Court
High Court of Kenya at Kiambu
Category
Civil
Judge(s)
C. Meoli
Judgment Date
October 23, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3

Case Brief: Justine Ng’ang’a Ngaruiya v Peter Gitau Njugi & another [2020] eKLR


1. Case Information:
- Name of the Case: Justine Ng’ang’a Ngaruiya v. Peter Gitau Njugi & Buxton Farmers Co. Ltd.
- Case Number: HCCA No. 173 of 2018 (Consolidated with Misc. Civil Case No. 212 of 2019)
- Court: High Court of Kenya at Kiambu
- Date Delivered: 23rd October 2020
- Category of Law: Civil
- Judge(s): C. Meoli
- Country: Kenya

2. Questions Presented:
The court must resolve whether the Appellant, Justine Ng’ang’a Ngaruiya, is entitled to a stay of execution of the judgment delivered on 11th April 2019, pending the determination of his appeal against the ruling of the lower court. Additionally, the court must consider the 2nd Respondent's application for leave to appeal out of time.

3. Facts of the Case:
The Appellant, Justine Ng’ang’a Ngaruiya, was an Interested Party in a lower court case (Limuru SPMCC No. 257 of 2011) filed by the 1st Respondent, Peter Gitau Njugi, against the 2nd Respondent, Buxton Farmers Co. Ltd. The lower court ruled in favor of the 1st Respondent, leading to a judgment that the Appellant sought to challenge. The Appellant contended that he was denied a hearing and that garnishee proceedings were initiated to release funds from the 2nd Respondent’s bank account to the 1st Respondent, which he argued would cause him substantial loss.

4. Procedural History:
The case progressed through various stages, including the consolidation of appeals and applications. The Appellant filed a motion on 11th June 2019 for a stay of execution pending appeal, which was opposed by the 1st Respondent. The 2nd Respondent also filed a motion seeking leave to appeal out of time, claiming it was unaware of the judgment until served with a garnishee order. Both motions were canvassed through written submissions.

5. Analysis:
- Rules: The court considered Order 42 Rule 6 of the Civil Procedure Rules, which outlines the conditions for granting a stay of execution pending appeal. The court emphasized the need for the applicant to demonstrate substantial loss and that the application was made without unreasonable delay.
- Case Law: The court referenced *Butt v Rent Restriction Tribunal* [1982] KLR 417 and *National Industrial Credit Bank Ltd v Aquinas Francis Wasike & Another* [2006] eKLR, which established principles regarding substantial loss and the effect of execution on the appeal's viability. The court also cited *Kenya Shell Ltd v Kibiru & Another* [1986] eKLR for the importance of demonstrating substantial loss.
- Application: The court found that the Appellant had a valid concern regarding the potential inability to recover funds if the 1st Respondent was paid before the appeal was resolved. The court acknowledged that the 1st Respondent failed to demonstrate his financial capacity to refund the decretal sum if the appeal succeeded, thus supporting the Appellant's claims of substantial loss.

6. Conclusion:
The court granted the Appellant's motion for a stay of execution, ordering that the funds in question remain in the account as security. The Appellant was also permitted to amend his memorandum of appeal. The court granted the 2nd Respondent leave to file an appeal out of time, consolidating it with the existing appeal.

7. Dissent:
There was no dissenting opinion noted in the ruling.

8. Summary:
The High Court of Kenya granted a stay of execution pending appeal to Justine Ng’ang’a Ngaruiya, determining that he would suffer substantial loss if the funds were released to the 1st Respondent. The court also allowed the 2nd Respondent to appeal out of time, highlighting the importance of balancing the rights of all parties involved. This case underscores the necessity for respondents to demonstrate their financial capacity in stay applications and the court’s discretion in ensuring fairness in civil proceedings.

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