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Court of AppealPartially AllowedCivil Appeal (High Court at Nyeri appeal from High Court suit over Ruguru/Kiamariga/328)

James Nduhiu Macharia v Mwotia Macharia [1986] KECA 35 (KLR)

Court of Appeal
28 October 1986
2,721 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal set aside a 12-year-old default judgment because one brother never got a chance to be heard on the other's land counterclaim.

What this practically means

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Executive summary

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The appellant, Nduhiu, sued his brother Mwotia in 1974 claiming vacant possession of an agricultural parcel and damages for trespass, alleging Mwotia occupied under a licence. Mwotia counterclaimed that, being in detention at consolidation, Nduhiu was registered as proprietor but held half the land in trust for him under Kikuyu customary law and the Registered Land Act, and sought a declaration of trust, transfer, or compensation for improvements. By consent before Todd, J, Nduhiu was to reply to the counterclaim within 14 days, in default judgment to be entered for Mwotia. No reply was filed (his advocate having become a magistrate), and after formal proof without notice to Nduhiu, Cockar, J gave judgment for Mwotia on June 11, 1979; the decree was executed and the land subdivided. Nduhiu's summons to set aside under Order IXB rule 8 was dismissed by Patel, J in 1985 as without merit. The Court of Appeal allowed the appeal. It held the consent judgment sought alternative, non-liquidated relief, so Nduhiu was entitled to attend and question Mwotia at a hearing on notice; the suit could only be set down after a summons for directions had been dealt with; and Patel, J wrongly exercised his discretion by ignoring relevant law and facts, including that the default was the advocate's fault. The High Court ruling and orders, the judgment of June 11, 1979 and its decree were set aside; leave was given to file a reply within 15 days with directions to follow, with no order for costs of the appeal.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the formal proof of the counterclaim could properly proceed without notice to the appellant or his advocate
  2. 2.Whether directions under the Civil Procedure Rules having not been given or dispensed with, the hearing should not have taken place
  3. 3.Whether Mr Justice J S Patel failed to exercise his discretion judicially in dismissing the application to set aside the judgment

Key legal issues

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01

Whether the default judgment on the counterclaim could stand

Holding

It could not. The counterclaim sought a declaration of trust or compensation on a valuation, a non-liquidated remedy, so the appellant was entitled to a hearing on notice.

Reasoning

The consent order of Todd, J purported to enter judgment in default of a reply for alternative orders - a declaration of trust or compensation per a valuation report. The court held such a counterclaim had to be set down for hearing at which Nduhiu could attend and question Mwotia and any witnesses. Formal proof without notice, and without directions under the rules, deprived him of a hearing.

p. 4
02

Whether J S Patel, J exercised his discretion judicially in refusing to set aside

Holding

No; he exercised his discretion wrongly by ignoring relevant law and facts.

Reasoning

The learned judge had a wide discretion under Order IXB rule 8, bounded only by the requirement that terms be just, and guided by authorities such as Shah v Mbogo and Mbogo v Shah. He failed to consider that the failure to reply was the advocate's fault, that the consent judgment was for alternative orders, and that the suit was listed for formal proof without notice; he therefore did not take into account matters he should have.

p. 5
03

Effect of the lapse of time (about twelve years since the consent order) on setting aside the judgment

Holding

Time and the execution of the decree did not preclude setting aside where there was good reason.

Reasoning

The respondent urged that a default judgment founded on a consent order should not be disturbed after twelve years, especially as the land had been subdivided and transferred. The court held there was good reason: the judgment was entered without a hearing on a counterclaim requiring proof, and the dispute between brothers over agricultural land deserved adjudication on the merits.

p. 5

Legal principles established

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  • Judgment in default of a reply to a counterclaim seeking a non-liquidated remedy (a declaration of trust or compensation based on a valuation) cannot be entered without a hearing on notice; the defendant to the counterclaim is entitled to attend and cross-examine.
  • The discretion to set aside a default judgment under Order IXB rule 8 is wide but must be exercised judicially, to avoid injustice from accident, inadvertence or excusable mistake, not to assist deliberate obstruction.
  • A court should take into account that a litigant's failure to file a pleading may be the fault of his advocate, not the litigant, when deciding whether to set aside a default judgment.
  • Formal proof of a suit may only be set down after a summons for directions has been dispensed with or dealt with in accordance with directions.

Court orders

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  1. 1.Appeal allowed
  2. 2.Ruling and orders of the High Court (J S Patel, J) set aside
  3. 3.Judgment entered for Mwotia on June 11, 1979 and the decree that followed set aside
  4. 4.Leave granted to Nduhiu to file a reply to the defence and to the counterclaim within 15 days
  5. 5.In default or thereafter, either party may apply for a summons for directions to be dispensed with or heard, orders made upon it, and a hearing date to be fixed and served
  6. 6.No order for the costs of the appeal

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
majority
majority
On appeal from
High Court
null
Jurisdiction invoked
First appeal to the Court of Appeal from the High Court (appellate jurisdiction over dismissal of application to set aside default judgment under Order IXB rule 8 Civil Procedure Rules)

Relief refused

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Costs of the appeal to the appellant

The court declined to award costs of the appeal

p. 5

Any personal costs order against the appellant's former advocate

The court noted it lacked power in this appeal to call on the former advocate to pay costs personally

p. 5

Costs

There will be no order for the costs of the appeal.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

So the appeal is allowed, the ruling and orders, of the High Court set aside, the judgment entered for Mwotia on June 11, 1979 and the decree that followed set aside, leave is granted to Nduhiu to file a reply to the defence and to the counter-claim within the next 15 days
p. 5Final orders/disposition
This discretion is intended to be exercised to avoid injustice or hardship resulting from accident, inadvertence, or excusable mistake or error, but is not designed to assist a person who has deliberately sought, whether by evasion or otherwise, to obstruct or delay the course of justice
p. 4Judicial discretion to set aside default judgment
The matter should have been set down for hearing and listed as such for either of these because Nduhiu was entitled to attend, with or without his advocate, and question Mwotia and his witnesses (if any)
p. 4Right to a hearing on a counterclaim for non-liquidated relief
it should be always be remembered that to deny the subject a hearing should be the last resort of a court.
p. 4Fair hearing
We find that he exercised his discretion wrongly because, with respect, he did not take into account the law and the facts which he should have done and which we have just set out in this judgment.
p. 5Appellate review of discretion

Issues in the judgment

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minor

Coram titles are inconsistent: J.O. Nyarangi is styled simply 'JUDGE' while the others are 'JUDGE OF APPEAL'/'Ag JUDGE OF APPEAL' on a Court of Appeal judgment; rank recorded exactly as printed.

minor

The suit was said to have been set down for formal proof on May 8 and 23, 1979 following letters of November 16, 1978 and March 9, 1979, but the consent order giving 14 days to reply was recorded on October 7, 1976; the chronology of the applications to set down spans these dates without reconciliation.

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "James Nduhiu Macharia v Mwotia Macharia [1986] KECA 35 (KLR)", Case Analysis (1986). Civil Appeal (High Court at Nyeri appeal from High Court suit over Ruguru/Kiamariga/328). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1986/35/eng@1986-10-28

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.