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Court of AppealAllowedCivil Application 43 of 2013· [2013] KECA 333 (KLR)

Rosemary Kinanu Gituma & another v Kenya Commercial Bank Limited [2013] KECA 333 (KLR)

Court of Appeal of Kenya
26 April 2013
1,107 words in judgment
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The bottom line

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Kenya's Court of Appeal fast-tracked property owners' challenge against KCB's planned auction because a 90-day sale notice was about to expire.

What this practically means

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Executive summary

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This is a single-Judge interlocutory ruling of the Court of Appeal at Nairobi by Nambuye JA on an informal inter partes application under rule 47(5) of the Court of Appeal Rules, seeking certification of urgency for the applicants' notice of motion dated 14th February 2013, filed pending an intended appeal against a High Court ruling (Havelock J, 30th January 2013, HCCC No. 682 of 2012). The underlying dispute concerned charged properties (LR Nairobi/Block 106/97 and LR Meru/Municipality/Block/202) securing a loan to the first applicant; the High Court had faulted the bank's move to realize the security but granted leave to restart, and required the applicants to pay monthly liquidation instalments of Kshs 274,722. The applicants argued that sale of family properties would render them homeless and the appeal nugatory; the bank opposed, citing the applicants' non-compliance with the conditional injunction. The Judge restated that the discretion on urgency certification is wide and unfettered but must be exercised upon reason, judiciously, on sound grounds rather than whim or sympathy, and in the interests of justice to both parties. Because the bank had re-initiated realization effective 5th April 2013 under a 90-day notice, the court certified the application as urgent and ordered it fast-tracked, with costs in the application. This ruling binds no issues on the merits; it is procedural only and does not disturb the High Court decision.

Key legal issues

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01

Principles governing a single Judge's discretion in certifying an application as urgent under rule 47(5) of the Court of Appeal Rules

Holding

The discretion is wide and unfettered but must be exercised on sound reasons, judiciously, and in the interests of justice to both parties, not on whim, caprice or sympathy.

Reasoning

The Judge distilled guiding principles from case law: discretion must be exercised upon reason and judiciously (CMC Holdings v Nzioki), on sound reason rather than whim, caprice or sympathy (Bagallo v Christian Childrens Fund), and for the interests of justice to both parties (Guthiaka v Ndururu). Applying these, the imminent expiry of the 90-day statutory notice of sale risked rendering the pending interim application nugatory, justifying fast-tracking.

p. 2
02

Whether urgency was demonstrated on the facts

Holding

Urgency was made out because the respondent had re-initiated realization of the charged properties effective 5th April 2013 under a 90-day notice, which could render the pending application nugatory.

Reasoning

The court weighed that the respondent had restarted the statutory power of sale process and that realization could occur at the expiry of 90 days from 5th April 2013. Ends of justice to both parties required the pending application to be fast-tracked so parties would know their position on interim relief before the notice expired.

p. 2

Legal principles established

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  • A single Judge's discretion on certification of urgency is wide and unfettered but must be exercised upon reason and judiciously, for the interests of justice to both parties.

Court orders

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  1. 1.That the application by way of notice of motion dated 14th February 2013 be heard as a matter of urgency
  2. 2.Costs in the application

Authorities

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Legislation

  • Court of Appeal RulesRule 47(5)

Cases cited (3)

  • CMC Holdings Limited versus Nzioki
    (2004) 1 KLR 173
  • Bagallo versus Christian Childrens Fund
    (2004) 2 KLR 73
  • Guthiaka versus Ndururu
    (2004) 2 KLR 67
On appeal from
High Court of Kenya at Nairobi (Milimani Commercial and Admiralty Division)
HCCC No. 682 of 2012
Jurisdiction invoked
Rule 47(5) of the Court of Appeal Rules - informal inter partes application before a single Judge for certification of urgency

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, "Rosemary Kinanu Gituma & another v Kenya Commercial Bank Limited [2013] KECA 333 (KLR)", Case Analysis (2013). Civil Application 43 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2013/333/eng@2013-04-26

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