APPELLATE PRACTICE — Stay of Execution — Conditional Stay — Onerous Conditions
Ratio Decidendi
Per Fabiyi, JSC, in Ajuwa & Anor v. SPDCN Ltd (2011) NLC-123-290-2007(SC) at pp. 19—20; Paras D—A:
"The court below found that the trial high court made the order of conditional stay in terms which were onerous and impossible to comply with. This is clearly manifest in the 3rd further affidavit of the Respondent. The Respondent was ordered to pay the sum of US$1.5 billion within a time that is less than one working day. As the ready cash was not available, the Respondent would have to dispose of its assets and oil wells etc. If the appeal succeeds, the judgment will be barren - as their assets would have gone. All these factors convinced the court below to find that the Respondent showed why the order is onerous and impossible of immediate performance. I feel the court below was in order."
Explanation / Scope
This principle establishes that a conditional stay of execution with onerous and impossible conditions may be set aside where compliance would require disposing of assets and render a successful appeal barren. The principle applies where conditions of stay are challenged. It ensures that stay conditions are reasonable. The principle reflects the need to preserve the judgment debtor. It prevents unjust conditions. The court must assess the conditions. The principle provides guidance on conditional stay.