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Court of AppealDismissedCivil Appeal 164 of 1994· [1995] KECA 80 (KLR)

SALIM KHAN & ANOTHER v NATIONAL BANK OF KENYA LIMITED [1995] KECA 80 (KLR)

Court of Appeal of Kenya
24 March 1995
595 words in judgment
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The bottom line

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Kenya's Court of Appeal confirmed that setting aside a validly obtained judgment requires a sworn affidavit showing a real defence, not just bare claims.

What this practically means

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Executive summary

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The Court of Appeal at Kisumu dismissed an appeal by Salim Khan and Nasreen Khan, trading as Kenhill Agencies, against a High Court ruling of 4 July 1994 (Githinji, J) refusing to set aside summary judgment entered for the National Bank of Kenya in H.C.C.C. No. 266 of 1993. The appellants' defence had been struck out and judgment entered with costs and interest on 17 January 1994. They applied for review and, alternatively, setting aside of that judgment. The judge correctly treated the applications as ones for setting aside summary judgment under Order 35 r 10 rather than review under Order 44, but found the applicants had not shown any prima facie mistakes, fraud or wrong debits, and dismissed them. On appeal, the three-judge bench (Gicheru, Tunoi and Shah, JJA) held that the judgment was regular, and that under Order 9B r 8 the power to set aside such a judgment is unconditional and discretionary, to be interfered with on appeal only where the appellate court is clearly satisfied the judge was wrong, following Mbogo and Another v. Shah (1968) E.A. 93. Applying what it described as an almost inflexible rule, the Court held that where a regular judgment has been entered an affidavit of merits - an affidavit stating facts showing a defence on the merits - is required. Since the appellants never attempted, by affidavit or otherwise, to show a good defence on the merits, and mere allegations of the existence of a defence were insufficient, the appeal failed. The appeal was dismissed with costs to the bank.

Key legal issues

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01

Nature of the application before the High Court

Holding

The judge rightly treated the applications as ones for setting aside summary judgment under Order 35 r 10 rather than for review under Order 44

Reasoning

The supporting affidavit showed the applicants were not seeking review on the grounds in Order 45 but setting aside of the ex-parte judgment for non-attendance. The judge, in the interest of justice, re-characterised the applications accordingly, which the Court of Appeal found correct.

p. 1
02

Requirement of affidavit of merits

Holding

Mere allegations of a defence without an affidavit of merits do not justify setting aside a regular judgment

Reasoning

The judgment entered was regular; in such circumstances an affidavit of merits stating facts showing a defence on the merits is almost an inflexible rule. The appellants never attempted to demonstrate a good defence on the merits by affidavit or otherwise, so the judge rightly refused to set aside the judgment.

p. 2
03

Interference with discretionary decisions

Holding

The Court of Appeal will not interfere with a judge's discretion unless clearly satisfied the judge was wrong

Reasoning

The power to set aside judgment under Order 9B r 8 is unconditional and discretionary. Applying Mbogo v Shah, the appellate court found no fault in the judge's exercise of discretion and so declined to interfere with the dismissal of the applications.

p. 2

Legal principles established

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  • Where a regular judgment is entered, an affidavit of merits stating facts showing a defence on the merits is required before it will be set aside
  • An appellate court will not interfere with a judge's exercise of discretion to set aside a judgment unless clearly satisfied that the judge was wrong

Court orders

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  1. 1.Appeal dismissed with costs

Authorities

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Legislation

  • Civil Procedure RulesOrder 45
  • Civil Procedure RulesOrder 44
  • Civil Procedure RulesOrder 35 r 10
  • Civil Procedure RulesOrder 9B r 8

Cases cited (1)

  • Mbogo and Another v. Shah
    (1968) E.A. 93
On appeal from
High Court of Kenya at Kisumu
H.C.C.C. No. 266 of 1993
Jurisdiction invoked
First appeal to the Court of Appeal from the High Court under the Constitution and the Appellate Jurisdiction Act (provision not expressly stated in the judgment)

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, "SALIM KHAN & ANOTHER v NATIONAL BANK OF KENYA LIMITED [1995] KECA 80 (KLR)", Case Analysis (1995). Civil Appeal 164 of 1994. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1995/80/eng@1995-03-24

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