CAPITAL INSURANCE BROKERS LTD v NZOIA SUGAR COMPANY LTD [2008] KEHC 3207 (KLR)

Facts

The Plaintiff, Capital Insurance Brokers Ltd, sought an award for unpaid premiums and commissions, and part of the penalties, from the Defendant, NZOIA Sugar Company Ltd. The Plaintiff had filed the suit in 1999, and interest was awarded on the award.

Issues

1. What security should be required as a condition for the stay of execution of the decree pending appeal?
2. Whether the Plaintiff's request for a deposit of the principal sums awarded is justified?

Reasoning

The court held that requiring the Defendant to deposit the decretal sum as it now stands may amount to a clog on its right of appeal, and that the interests of justice will be served by requiring the Defendant to provide security by way of a deposit into court of the principal sums awarded.

Outcome

The Plaintiff's request for a deposit of the principal sums awarded is granted, but the Defendant is required to provide security by way of a deposit into court of KShs. 20,421,441/45 as a condition for the stay of execution of the decree pending disposal of the intended appeal.