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Court of AppealPartially AllowedCivil Application (Rules 4 and 44, Court of Appeal Rules) – Notice of Motion following Notice of Appeal dated 28th April 2010· [2012] KECA 233 (KLR)

S. K. Macharia & another v Standard Chartered Bank Limited [2012] KECA 233 (KLR)

Court of Appeal of Kenya
27 January 2012
1,351 words in judgment
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The bottom line

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Kenya's Court of Appeal forgave a four-day filing delay in an appeal involving a company in liquidation, but only on strict conditions the appellant had to meet.

What this practically means

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Executive summary

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This was an interlocutory notice of motion in the Court of Appeal, Nairobi, by two intended appellants seeking leave to amend the heading of their Notice of Appeal and an extension of time to file their record of appeal. The Notice of Appeal dated 28th April 2010 misdescribed the 2nd applicant as 'Royal Media Services' instead of 'Royal Credit Limited', an inadvertence by counsel whose firm also acted for Royal Media Services in other matters. The record of appeal lodged on 24th March 2011 was four days out of the statutory period, explained by counsel's failure to supervise court clerks and by the High Court's delay in issuing a certificate of delay. The application was brought under sections 3A and 3B of the Appellate Jurisdiction Act and rules 4 and 44 of the Court of Appeal Rules 2010, invoking the overriding objective. Applying the established rule 4 criteria drawn from Mutiso v Mwangi and Mwangi v Kenya Airways Ltd - the length of and reasons for the delay, the prospects of success, prejudice to the respondent and public administration - the court held these factors non-exhaustive and exercised its unfettered discretion in the applicants' favour, noting the short delay and the substantial amount in dispute. Respondent's counsel had objected that the appeal omitted a plaintiff and, more significantly, that the Official Receiver had not been enjoined despite Madhu Paper International Limited being in liquidation. Rather than dismissing the application, the court granted the prayers conditionally: the applicant was to apply within one month to enjoin the Official Receiver, and costs of the application were to be paid to the respondent within ten days of agreement or taxation, failing compliance with which the application would stand dismissed. Judgment was delivered at Nairobi on 27th January 2012 by Aganyanya, JA.

Key legal issues

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01

Whether a four-day delay in filing a record of appeal warranted an extension of time

Holding

Yes. The delay was short and explained (counsel's failure to supervise clerks and delay by the High Court in issuing the certificate of delay); no prejudice was shown; the disputed amount was substantial; the court exercised its unfettered discretion in favour of the applicant.

Reasoning

The court applied the established rule 4 factors: length and reasons for delay, arguability of the appeal, prejudice to the respondent and public administration. It found the four-day delay explained and harmless, and invoked the overriding objective in sections 3A and 3B of the Appellate Jurisdiction Act to resolve the matter justly and expeditiously rather than await a striking-out and fresh filing.

p. 3
02

Whether a typing error naming the 2nd applicant could be corrected by amendment of the Notice of Appeal

Holding

Yes. The misdescription of Royal Credit Limited as Royal Media Services was an inadvertence by counsel's firm, and the court granted leave to amend under rule 44, no serious objection having been raised.

Reasoning

The error was an inadvertence: the firm acts for Royal Media Services in other matters and mistakenly used that name in the heading. The respondent did not seriously object to correction of the name, and the court held it had an unfettered discretion to allow amendment of any document, treating the corrected notice as properly filed and served.

p. 2
03

Whether failure to enjoin the Official Receiver to the appeal of a company in liquidation should defeat the application

Holding

No, but the court conditioned the grant: the applicant was required to apply within one month to enjoin the Official Receiver to the Notice and Record of Appeal, failing which the application would stand dismissed.

Reasoning

Counsel for the respondent argued that Madhu Paper International Limited, being in liquidation, could not stand on its own without the Official Receiver, casting doubt on the appeal's chances of success. The court accepted this concern but did not dismiss the application; instead it gave the applicant one month to apply to enjoin the Official Receiver and imposed a costs condition.

p. 3

Legal principles established

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  • In an extension-of-time application under rule 4, the court considers the period of and reasons for delay, the chances of success of the appeal, prejudice to the respondent and the effect on public administration, but retains an unfettered discretion to be exercised in all the circumstances.
  • Sections 3A and 3B of the Appellate Jurisdiction Act confer on the Court discretion to apply the overriding objective when dealing with interlocutory applications.

Court orders

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  1. 1.Leave granted to amend the heading of the Notice of Appeal dated 28th April 2010 to correct the name of the 2nd applicant
  2. 2.Amended Notice of Appeal deemed duly and properly filed and served
  3. 3.Extension of time granted in respect of the record of appeal lodged on 24th March 2011, which was deemed duly and properly filed and served
  4. 4.Condition: within one month from the date of the order, the applicant to make an application to enjoin the Official Receiver to the Notice and Record of Appeal
  5. 5.Condition: costs of the application, either agreed or taxed, to be paid to the respondent within ten days of agreement or taxation
  6. 6.Failure to comply with either condition would cause the application to stand dismissed

Authorities

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Legislation

  • Appellate Jurisdiction Actsection 3A
  • Appellate Jurisdiction Actsection 3B
  • Court of Appeal Rules 2010rule 4
  • Court of Appeal Rules 2010rule 44

Cases cited (2)

  • Mutiso v Mwangi
    Civil Application No. Nai. 255 of 1997
  • Mwangi v Kenya Airways Ltd
    [2003] KLR 486
On appeal from
High Court of Kenya
Jurisdiction invoked
Sections 3A and 3B of the Appellate Jurisdiction Act and rules 4 and 44 of the Court of Appeal Rules 2010

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, "S. K. Macharia & another v Standard Chartered Bank Limited [2012] KECA 233 (KLR)", Case Analysis (2012). Civil Application (Rules 4 and 44, Court of Appeal Rules) – Notice of Motion following Notice of Appeal dated 28th April 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2012/233/eng@2012-01-27

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