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Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Appeal No. 4 of 1999· [2000] KECA 201 (KLR)

Heco Uberseehandel v Mac's Pharmaceutical Limited

Court of Appeal
7 April 2000
1,567 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Court of Appeal confirmed that a party claiming a fixed Kenya Shilling amount in its plaint is stuck with that figure and cannot claim more on appeal.

What this practically means

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Executive summary

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Heco Uberseehandel, a German company based in Hamburg, sued Mac's Pharmaceutical Limited in the High Court at Nairobi to recover DM 124,320, equivalent to K.Shs.1,245,064.80, for three batches of medical drugs supplied under three contracts. Shields J, in a reserved judgment dated 20th August 1992, granted the plaintiff all the prayers in the plaint. Heco nonetheless appealed to the Court of Appeal on eight grounds, all directed at a single point: that the debt, having been contracted in Deutsche Marks, should have been converted into Kenya Shillings at the rate prevailing at the date of judgment or payment rather than at the rate fixed in the plaint. The Court of Appeal (Omolo, Akiwumi and Owuor JJA) delivered a single judgment. It accepted the conversion principle, drawn from its earlier decision in Beluf Establishment v The Attorney General and conceded by both counsel, that a foreign currency judgment is convertible at the rate prevailing at the date of payment or enforcement. But the principle could not assist the appellant. Its plaint claimed a specific shilling figure, its written submissions prayed for judgment as prayed in the plaint, and it never sought amendment. Order VII Rule 6 requires a plaint to state specifically the relief claimed; Shields J awarded exactly what was claimed, and a litigant who obtains precisely what it asked for cannot complain on appeal that the award was undervalued. The appeal was dismissed with costs to the respondent. The judgment binds lower courts both on the conversion-date rule and on the binding force of a party's pleadings.

Key legal issues

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01

At what date and rate should a foreign currency debt or judgment be converted into Kenya Shillings?

Holding

The applicable principle, drawn from Beluf Establishment v The Attorney General and accepted by both counsel, is that conversion must be at the rate applicable at the time of payment or enforcement of the judgment. However, the principle did not avail the appellant because it had claimed and quantified a fixed Kenya Shilling sum in its unamended plaint.

Reasoning

The court identified the eight grounds of appeal as predicated on the Beluf principle. In Beluf, Akiwumi JA, after a very full consideration of the authorities including Miliangos and Despinah, concluded that the conversion date should be when payment is made or judgment enforced. Counsel for both sides agreed that Beluf correctly states the legal position in Kenya, and even the trial judge had acknowledged the principle. The court endorsed the principle but held that the appellant could not invoke it because of its pleadings.

p. 2
02

Was the appellant bound by the Kenya Shilling quantification in its plaint, or could it claim conversion at the judgment-date rate on appeal?

Holding

The appellant was bound by its pleadings. Having claimed DM 124,320 equivalent to K.Shs.1,245,064.80 in its plaint and never sought amendment, it was entitled only to that specific claim, and the trial judge was entitled to award exactly what was claimed.

Reasoning

Order VII Rule 6 requires every plaint to state specifically the relief claimed. The appellant's plaint and its written submissions prayed for judgment as pleaded, quantifying the debt in shillings as at the time of filing suit; at no stage did it seek to amend the plaint to reflect a different shilling amount. Shields J gave precisely the relief prayed for. A litigant who obtains exactly what it asked the court to give cannot legitimately complain on appeal that the award was undervalued, so all eight grounds of appeal failed.

p. 3

Legal principles established

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  • Where judgment is given in a foreign currency, that is, a currency other than the Kenya Shilling, the rate of conversion must be the rate applicable at the time of payment or enforcement of the judgment.
  • A plaintiff is bound by the specific relief claimed in its plaint; a court which awards exactly what was claimed does not err, and a party who wishes to rely on a different conversion date or higher quantification must amend its pleadings.

Court orders

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  1. 1.The appeal is dismissed with costs thereof to the respondent.
On appeal from
High Court (referred to in the judgment as the superior court) at Nairobi
Jurisdiction invoked
Not expressly stated in the judgment; the matter came before the Court of Appeal as a first appeal from the High Court at Nairobi.

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, "Heco Uberseehandel v Mac's Pharmaceutical Limited", Case Analysis (2000). Civil Appeal No. 4 of 1999. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2000/201/eng@2000-04-07

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