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Court of AppealDismissedCivil Appeal (Application) No. 109 of 1995

Kenya Commercial Bank Ltd v Fisco(Kenya) Limited & another [1996] KECA 183 (KLR)

Court of Appeal
3 June 1996
344 words in judgment
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The bottom line

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Kenya's Court of Appeal dismissed KCB's attempt to strike out Fisco's appeal, confirming that applications must be backed by solid affidavit evidence and that appeals, not fresh applications, are the remedy for bad rulings.

What this practically means

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Executive summary

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This is a short ruling of the Court of Appeal at Nairobi (Akiwumi, Tunoi and Shah, JJ.A.) delivered on 3rd June 1996 in Civil Appeal (Application) No. 109 of 1995, an application brought by Kenya Commercial Bank Ltd within proceedings against Fisco (Kenya) Limited and Paul Okelo Abaja, arising from a ruling of the High Court (Justice Shields). The applicant sought four forms of relief: striking out the respondent's appeal, setting aside the proceedings and orders of the superior court, an order that the Receiver appointed over the applicant company file proofs of debt, and a stay of proceedings. The court found the application wholly unsupported: the supporting affidavit did not substantiate the orders sought, there was no affidavit evidence that the respondent had failed to take an essential step in its appeal, and the Receiver's failure to file proofs of debt was not sufficient to justify striking out the appeal. The court further held that a party dissatisfied with previous orders and rulings of the superior court should appeal against them rather than mount the present application, and that none of the conditions for a stay had been satisfied. The application was dismissed with costs. The court additionally ordered that the three appeals filed by the respondent be listed for hearing at the same time. No authorities or statutes were cited in the ruling.

Questions the Court framed

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

  1. 1.Whether the respondent's appeal should be struck out for failure to take an essential step
  2. 2.Whether the proceedings and orders of the superior court should be set aside
  3. 3.Whether the Receiver appointed over the applicant company should be compelled to file proofs of debt
  4. 4.Whether a stay of proceedings in the appeal should be granted

Key legal issues

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01

Whether an appeal may be struck out for failure to take an essential step

Holding

The appeal could not be struck out absent affidavit evidence of failure to take an essential step, and failure by the Receiver to file proofs of debt was insufficient

Reasoning

The court examined the supporting affidavit and found it did not substantiate any of the orders sought. Striking out an appeal is a drastic remedy requiring proof, by affidavit evidence, that the respondent failed to take an essential step. The Receiver's omission to file proofs of debt did not meet that threshold, so the striking-out relief failed.

p. 1
02

Whether stay of proceedings could be granted

Holding

Stay was refused because none of the conditions precedent to granting stay had been satisfied

Reasoning

The court treated the stay request as uncertain ('if that is what the applicant is really seeking') and measured it against the established conditions for stay. Since none of those conditions were satisfied on the material before it, the court declined to grant the stay and dismissed the application in its entirety.

p. 1

Legal principles established

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  • A party dissatisfied with previous orders and rulings of the superior court must appeal against them rather than seek to set them aside by a fresh application
  • An application must be supported by affidavit evidence proving the grounds relied upon; a supporting affidavit that does not support the orders sought cannot sustain the application

Court orders

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  1. 1.The application is dismissed with costs
  2. 2.The three appeals filed in this matter by the respondent be listed for hearing at the same time

The bench

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

majority

Wrote the judgment

majority

Wrote the judgment

majority

Wrote the judgment

On appeal from
High Court of Kenya at Nairobi
H.C.C.C No. 2523 & 533 of 1982
Jurisdiction invoked
Appellate jurisdiction of the Court of Appeal over rulings of the High Court (application within a pending appeal)

Relief refused

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Striking out the respondent's appeal

No affidavit evidence showed the respondent failed to take an essential step

p. 1

Setting aside the proceedings and orders of the superior court

Dissatisfaction with previous orders and rulings should be pursued by appeal, not by such an application

p. 1

Order compelling the Receiver to file proofs of debt

The failure by the Receiver to file proofs of debt was insufficient to strike out the appeal

p. 1

Stay of proceedings in the appeal

None of the conditions for stay had been satisfied

p. 1

Costs

The application is dismissed with costs (costs awarded to the respondents)

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.

In the result, this overloaded application must fail and it is dismissed with costs.
p. 1Disposition - dismissal of the application
It is also hereby ordered the three appeals filed in this matter by the respondent be listed for hearing at the same time.
p. 2Final orders - consolidation of hearing of the three appeals
If the applicant is dissatisfied with the previous orders and rulings of the superior court he should appeal against them, not by way of the present application.
p. 1Correct remedy against interlocutory orders is appeal

Issues in the judgment

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minor

The header states the appeal is from a ruling dated 17th July 1996, yet the ruling was delivered on 3rd June 1996 - an internal date inconsistency

minor

The judgment text is garbled in places, e.g. 'that contain proceedings and orders of the superior court to set aside' and 'does not support way of the orders sought'

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, "Kenya Commercial Bank Ltd v Fisco(Kenya) Limited & another [1996] KECA 183 (KLR)", Case Analysis (1996). Civil Appeal (Application) No. 109 of 1995. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1996/183/eng@1996-06-03

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