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Court of AppealPartially AllowedNotice of Motion dated and lodged 20th August, 2009 (Civil Application)· [2009] KECA 148 (KLR)

NAFTALI RUTHI KINYUA & ANOTHER V KENYA COMMERCIAL BANK LIMITED & ANOTHER [2009] KECA 148 (KLR)

Court of Appeal of Kenya
9 October 2009
1,349 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 gave two borrowers seven days to file an appeal, but only if they first deposited over Kshs. 615,000 as security.

What this practically means

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Executive summary

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This is a single-judge ruling of the Court of Appeal at Nairobi by Omolo, JA on a notice of motion dated 20th August 2009 brought under rule 4 of the Court of Appeal Rules, seeking enlargement of time within which to file and serve a notice of appeal. The intended appeal challenged a High Court ruling of Khaminwa, J delivered on 11th June 2009, which directed the applicants to pay taxed costs of Kshs. 615,832.20 as security before prosecuting their suit HCCC No 394 of 2006 against Kenya Commercial Bank Limited and Marlene Auctioneers. The applicants, who had borrowed from the bank on security of land in Eastleigh, Nairobi, contended they only learned of the ruling on 30th July 2009 and that the subsequent delay in filing the motion was not inordinate; they also argued the taxed costs had been reduced by consent to Kshs. 28,225, a contention the court doubted but did not conclusively determine. Holding that its discretion under rule 4 was wholly unfettered and must meet the justice of the case, the court took account of the extensive litigation history between the parties and the respondents' justified fear about the applicants' ability to pay costs. The court enlarged time for seven days for filing and serving the notice of appeal, but conditioned the extension on the applicants depositing Kshs. 615,832.20 in an interest-earning joint account within thirty days, refundable if the appeal succeeded. Failure to comply would result in the motion standing dismissed with costs to the respondents; costs of the motion were to be in the intended appeal.

Key legal issues

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01

Whether extension of time should be granted under rule 4

Holding

Extension granted for seven days for filing and serving the notice of appeal, but made conditional on the applicants depositing the taxed costs of Kshs. 615,832.20 with the 1st respondent

Reasoning

The court weighed the applicants' explanation for the delay (learning of the ruling on 30th July 2009 and time needed to prepare the motion) against the litigation history of multiple suits against the bank and the justified fear the applicants might not pay costs. The deposit condition balances the applicants' right of appeal with protection of the respondents, refundable if the appeal succeeds.

p. 3
02

Whether the delay of about twenty days after learning of the ruling was inordinate

Holding

The court did not make a definitive finding of inordinate delay; it accepted the delay may have been justified and treated it as a factor to be weighed rather than disqualifying

Reasoning

The court noted it may well be that the applicants only learned of the ruling on 30th July 2009 and that the twenty days taken to file the motion may have been necessary for the advocate to contact them and prepare. That explanation was weighed against the applicants' conduct in filing numerous cases, with the outcome being a conditional rather than outright refusal.

p. 3
03

Whether the bill taxed at Kshs. 615,832.20 had been reduced by consent to Kshs. 28,225

Holding

The court expressed doubt about the applicants' contention and declined to rule conclusively on it

Reasoning

There were two distinct bills of costs: one filed on 5th December 2003 and taxed at Kshs. 615,832.20, and a second filed on 10th August 2007 and by consent taxed at Kshs. 28,225. The applicants contended the larger sum was agreed down to the smaller, but the consent order of 7th November 2007 did not support that, though the court left the point open.

p. 2

Legal principles established

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  • Under rule 4 of the Court of Appeal Rules the court's discretion to extend time is unfettered and is exercised to meet the justice of the case, taking into account the history of the litigation and the order against which appeal is proposed

Court orders

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  1. 1.Time within which to file and serve the notice of appeal enlarged; the notice to be filed and served within seven days of the date of the order
  2. 2.As a condition of the extension, the applicants to deposit Kshs. 615,832.20 with the 1st respondent in an interest-earning account in the joint names of the parties' respective advocates within thirty (30) days
  3. 3.If the applicants succeed in the intended appeal, the deposit and accruing interest to be refunded to them
  4. 4.If the applicants fail to comply with the deposit condition, the motion dated 20th August 2009 to stand dismissed with costs to the respondents
  5. 5.Costs of the motion to be in the intended appeal
On appeal from
High Court of Kenya
HCCC No 394 of 2006 (ruling by Khaminwa, J)
Jurisdiction invoked
Rule 4 of the Court of Appeal Rules

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, "NAFTALI RUTHI KINYUA & ANOTHER V KENYA COMMERCIAL BANK LIMITED & ANOTHER [2009] KECA 148 (KLR)", Case Analysis (2009). Notice of Motion dated and lodged 20th August, 2009 (Civil Application). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2009/148/eng@2009-10-09

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