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Court of AppealDismissedCivil Appli No. 308 of 2003 (UR 155/03)· [2008] KECA 245 (KLR)

Kobil Petroleum Limited v Castrol Limited [2008] KECA 245 (KLR)

Court of Appeal of Kenya
15 February 2008
2,276 words in judgment
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The bottom line

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Kenya's Court of Appeal confirmed that attempts to strike out an appeal must be filed within thirty days of service of the record, or they fail.

What this practically means

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Executive summary

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This is a ruling of a three-judge bench of the Court of Appeal at Nairobi on a notice of motion dated 11th November 2003 by Kobil Petroleum Limited seeking to strike out Castrol Limited's appeal (Civil Appeal No. 303 of 2001) against a ruling of Ransley, Commissioner of Assize, delivered on 3rd May 2001, which had set-aside proceedings dismiss an application to set aside interim injunction orders granted pending arbitration. Kobil argued that under section 39 of the Arbitration Act the Court could only entertain appeals on matters of law, and that the sole question of law - the existence of an arbitration agreement - had already been decided, leaving the Court without jurisdiction. Castrol opposed on two grounds: the striking-out application was filed on 13th November 2003, long after the thirty days permitted by the proviso to rule 80 of the Court of Appeal Rules from service of the record of appeal in late 2001; and the appeal raised genuine matters of law including the exercise of discretion and service of process. The Court held the application incompetent, noting the proviso to rule 80 expressly bars striking-out applications brought after thirty days from service of the record of appeal, and counsel offered no reason why the proviso did not apply. On the merits, the Court agreed with Castrol that the existence of an arbitration agreement was only one issue in the appeal and that other grounds, such as the principles guiding the exercise of judicial discretion and appellate interference with discretionary decisions, were matters of law. The application was dismissed with costs to Castrol, the appellant in the underlying appeal. Civil Appeal No. 303 of 2001 was left intact to proceed to full hearing.

Key legal issues

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01

Competency of a rule 80 striking-out application filed out of time

Holding

The application was incompetent because it was filed on 13th November 2003, well beyond the thirty days from service of the record of appeal at the end of 2001, and counsel gave no reason why the proviso should not apply.

Reasoning

The proviso to rule 80 is mandatory and time-bars striking-out applications brought more than thirty days after service of the record of appeal on the respondent. Service before the end of 2001 was conceded from the bar, and counsel's bare assertion that the rule did not apply, unsupported by reasons, could not save the application.

p. 4
02

Whether the Court has jurisdiction to entertain the appeal notwithstanding section 39 of the Arbitration Act

Holding

The appeal raised matters of law beyond the existence of an arbitration agreement, including principles governing the exercise of discretion and service, so the Court had jurisdiction and the striking-out application failed on the merits.

Reasoning

Counsel for the applicant argued that the only question of law was the existence of an arbitration agreement, already decided, leaving no appeal under section 39 of the Arbitration Act. The Court disagreed, agreeing with the respondent that issues such as exparte hearing without valid service, the exercise of the Commissioner's discretion, and the principles for appellate interference with discretion were matters of law squarely within its jurisdiction.

p. 4

Legal principles established

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  • An application under rule 80 of the Court of Appeal Rules to strike out a notice of appeal or an appeal shall not be brought after the expiry of thirty days from the date of service of the record of appeal on the respondent; a late application is incompetent and must be struck out.
  • An appeal from a ruling involving the exercise of judicial discretion, including the principles guiding the application of discretion and interference on appeal, raises matters of law for purposes of appellate jurisdiction under section 39 of the Arbitration Act.

Court orders

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  1. 1.The application by notice of motion dated 11th November 2003 is dismissed
  2. 2.Costs of the application awarded to the respondent in the application, who is the appellant in Civil Appeal No. 303 of 2001

Authorities

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Legislation

  • Arbitration Actsection 4
  • Arbitration Actsection 17(1)
  • Arbitration Actsection 17(5)
  • Arbitration Actsection 39
  • Civil Procedure Act
  • Civil Procedure RulesOrder 39
  • Civil Procedure RulesOrder 5 rule 9(2)
  • Civil Procedure RulesOrder 5 rule 21
  • Civil Procedure RulesOrder 5 rule 21A
  • Court of Appeal Rulesrule 80
On appeal from
High Court of Kenya, Nairobi
H.C. Misc. Application No. 73 of 2001
Jurisdiction invoked
Rule 80 of the Court of Appeal Rules (application to strike out an appeal); section 39 of the Arbitration Act was invoked on the scope of appellate jurisdiction

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, "Kobil Petroleum Limited v Castrol Limited [2008] KECA 245 (KLR)", Case Analysis (2008). Civil Appli No. 308 of 2003 (UR 155/03). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2008/245/eng@2008-02-15

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