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Court of AppealPartially AllowedCivil Application No. NAI 24 of 1998 (11/98UR)· [1998] KECA 149 (KLR)

LAKELAND MOTORS LIMITED vs HARBHAJAN SINGH SEMBI [1998] KECA 149 (KLR)

Court of Appeal of Kenya
20 February 1998
1,138 words in judgment
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The bottom line

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Kenya's Court of Appeal set aside a judgment creditor's entire execution process because he attached the debtor's goods without following mandatory procedure or giving the debtor a hearing.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (Gicheru, Omolo and Shah, JJ.A.) on Lakeland Motors Limited's application for a stay of execution of a decree of the High Court at Kisumu (Wambilyangah, J.) in Kisumu H.C.C.C. No. 227 of 1997, together with a mandatory injunction for the return of attached goods, pending an intended appeal. Judgment had been entered against the applicant for K.Shs.5,264,435.55 with interest on 21st January 1998. The respondent, apprehending dissipation of assets, obtained a warrant of attachment and sale before taxation under section 94 of the Civil Procedure Act ex parte, secured an ex parte order dispensing with rule 12(b) of the Auctioneers Rules, 1997, extracted the decree without the applicant's involvement contrary to Order XX rule 7 of the Civil Procedure Rules, attached the applicant's goods and advertised them for auction. The court held that section 94 requires parties to be heard before execution before taxation is ordered, endorsing Shah JA's observation in the Bamburi Portland Cement case. It further held that no provision exists for dispensing with rule 12(b), and that the flagrant disregard of that rule was a gross irregularity amounting to an abuse of the court's process. The court declined the stay under rule 5(2)(b) but, in exercise of its inherent power under rule 1(3) of the Court of Appeal Rules, set aside the entire execution process. It made no order as to the costs of the application, but ordered the respondent to bear the costs occasioned by the irregular and wrongful attachment, including the court broker's costs. The decree itself was not disturbed.

Key legal issues

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01

Right to be heard before execution before taxation under section 94 of the Civil Procedure Act

Holding

An order for execution before taxation under section 94 cannot properly be made without affording the decree-debtor an opportunity to be heard; the respondent obtained the warrant ex parte and behind the applicant's back.

Reasoning

The court held that the judicial discretion under section 94 requires that parties to a decree passed in the superior court's original civil jurisdiction be heard before execution before taxation is ordered. The only step taken was a letter to the Deputy Registrar seeking a warrant; the applicant was never made aware of the move. The court endorsed Shah JA's observation in the Bamburi Portland Cement case on the application of section 94.

p. 2
02

Compliance with Order XX rule 7 of the Civil Procedure Rules in preparation of the decree

Holding

The respondent extracted the decree without the applicant's involvement, contrary to the provisions of Order XX rule 7 governing preparation of decrees.

Reasoning

The respondent, apprehensive that the applicant was disposing of assets, extracted a decree on 23rd January 1998 without the applicant's knowledge and in disregard of Order XX rule 7. It was not contested by counsel for the respondent that the applicant was involved in preparing the decree as the rule requires. This compounded the irregularity in the execution process.

p. 2
03

Mandatory compliance with rule 12(b) of the Auctioneers Rules, 1997

Holding

Rule 12(b) of the Auctioneers Rules, 1997 admits of no dispensation; attachment of goods without a proclamation and signed inventory in the prescribed form is a gross irregularity justifying setting aside the execution.

Reasoning

The court found no provision in the Auctioneers Act, 1996 or the Auctioneers Rules, 1997 permitting dispensation with rule 12(b), yet the Deputy Registrar had granted an ex parte order dispensing with compliance. The respondent attached the applicant's goods without complying with the rule. The court characterized this as a flagrant disregard amounting to gross irregularity and an abuse of the process of the court, which it would not countenance.

p. 2

Legal principles established

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  • Before a decree is executed before taxation under section 94 of the Civil Procedure Act, the parties to the decree must be given an opportunity to be heard.
  • There is no power to dispense with rule 12(b) of the Auctioneers Rules, 1997, and execution in disregard of it is a gross irregularity amounting to an abuse of process which the court will set aside.

Court orders

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  1. 1.Stay of execution under rule 5(2)(b) of the Court of Appeal Rules declined
  2. 2.The execution process of the decree in Kisumu H.C.C.C. No. 227 of 1997 set aside under rule 1(3) of the Court of Appeal Rules
  3. 3.No order as to the costs occasioned by the application
  4. 4.The costs occasioned by the irregular and wrongful attachment, including the court broker's costs, to be borne by the respondent

Authorities

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Legislation

  • Civil Procedure Act, Chapter 21 Laws of Kenyasection 94
  • Civil Procedure RulesOrder XX rule 7
  • Auctioneers Rules, 1997rule 12(b)
  • Auctioneers Act, 1996
  • Companies Act, Chapter 486 Laws of Kenyasection 223
  • Rules of the Court of Appealrule 5(2)(b)
  • Rules of the Court of Appealrule 1(3)

Cases cited (1)

  • Bamburi Portland Cement Company Limited v Imranali Chandbhai Abdulhussein
    Civil Appeal No. 83 of 1995 (unreported)
On appeal from
High Court of Kenya at Kisumu
Kisumu H.C.C.C. No. 227 of 1997
Jurisdiction invoked
Rule 5(2)(b) and rule 1(3) of the Court of Appeal Rules (inherent power), on an application for stay of execution and mandatory injunction

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, "LAKELAND MOTORS LIMITED vs HARBHAJAN SINGH SEMBI [1998] KECA 149 (KLR)", Case Analysis (1998). Civil Application No. NAI 24 of 1998 (11/98UR). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1998/149/eng@1998-02-20

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