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Court of AppealAllowedCivil Application No. 194 of 2014 (UR 153/2014)· [2014] KECA 355 (KLR)

Samiyan Kaur Devinder Singh v Speedway Investments Ltd & another [2014] KECA 355 (KLR)

Court of Appeal
3 October 2013
2,088 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal let a homebuyer stay in her apartment pending appeal because the trial judge had disclosed a business tie to the other side.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (Ouko, M'inoti and Mohammed JJ.A.) on an application under rules 1(2) and 5(2)(b) of the Court of Appeal Rules for maintenance of status quo pending an intended appeal against a ruling of Ogola, J. delivered on 5th December 2013 in HCCC No. 553 of 2010, dismissing the applicant's injunction to restrain the respondents from interfering with her ownership and enjoyment of an apartment in Lavington, Nairobi. The applicant had bought the property for Kshs.6,200,000, paid in full and occupied it for five years, but the 2nd respondent bank, holding a later-registered legal charge, demanded the prevailing market price of Kshs.12,500,000 or eviction. Significantly, Ogola, J., in a postscript to his ruling, disclosed that he had a contractual relationship with the 1st respondent yet had proceeded to determine the application, and directed that the matter henceforth be heard by a different judge. The Court of Appeal found the intended appeal arguable on the Article 50 question whether the applicant received a fair hearing before an independent and impartial tribunal, and found that the appeal would be rendered nugatory if she were evicted pending its hearing. Invoking the Court's inherent power under Rule 1(2), the Court ordered that the applicant continue in quiet enjoyment and possession of the apartment pending the hearing and determination of the intended appeal, with the costs of the application to abide its outcome.

Key legal issues

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01

Whether a judge's disclosure of a prior contractual relationship with a party, followed by continued hearing and determination of the matter, raises an arguable appeal on the right to a fair hearing under Article 50 of the Constitution.

Holding

Yes. The disclosure by the learned judge that he had a contractual relationship with one of the parties and still proceeded to determine the application raises a substantial and bona fide arguable issue implicating the fundamental principle of an independent and impartial tribunal.

Reasoning

The Court found that the applicant's first ground of appeal — that the judge continued to hear and determine the application after realising he had a contractual relationship with the 1st respondent — raises the fundamental question whether her Article 50 right to a fair hearing by an independent and impartial tribunal was violated. Drawing on Sellar v Highland Railway and Serah Njeri Mwobi, the Court held that preserving the administration of justice from any appearance of bias is so grave that small inconvenience may be endured. The Court would abdicate its responsibility if it declined a preservatory order.

p. 3
02

Whether the intended appeal, if successful, would be rendered nugatory absent a preservatory order.

Holding

Yes. The applicant had paid the full purchase price and been in possession for five years; eviction and sale at market price several times higher would cause hardship disproportionate to the respondents' position.

Reasoning

The Court held that nugatory-ness depends on the circumstances of each case, weighing the respective inconvenience and hardship to the parties. The applicant had paid Kshs.6,200,000 in full and occupied the property for five years, yet faced eviction unless she paid Kshs.12,500,000 — the prevailing market price. It was simplistic to say that because her ultimate loss is quantifiable in money she should lose the property pending appeal.

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03

Whether the Court could grant an order for maintenance of status quo though not among the orders expressly provided by Rule 5(2)(b).

Holding

Yes. Relying on the inherent power preserved by Rule 1(2), the Court had basis to issue a preservatory order where the ends of justice so required, and the parties' common ground on the content of the status quo cured its usual uncertainty.

Reasoning

Rule 5(2)(b) empowers the Court to issue an injunction or order stay of execution or stay of proceedings. The applicant could not seek stay of a negative order and opted for maintenance of status quo, an order whose usual difficulty is its uncertainty. Here, however, it was common ground that the status quo sought was the applicant's continued quiet possession and occupation. Rule 1(2) preserves the Court's inherent power to make orders necessary for the ends of justice, giving basis for the preservatory order.

p. 3

Legal principles established

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  • An applicant under Rule 5(2)(b) need only demonstrate one bona fide arguable issue; a single arguable ground suffices.
  • A stay of execution cannot issue against a negative order, such as dismissal of an application for injunction, since it is incapable of being executed.
  • The inherent power of the Court under Rule 1(2) of the Court of Appeal Rules empowers it to issue preservatory orders necessary for the ends of justice, including an order for maintenance of status quo pending appeal.
  • An order for maintenance of status quo is inherently problematic because what constitutes the status quo at any given time is contentious and contested.
  • Public confidence in the administration of justice is indispensable; judges must not only be impartial but must be perceived to be impartial.
  • Whether an intended appeal will be rendered nugatory depends on the particular circumstances of each case, including the relative inconvenience and hardship to each party.

Court orders

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  1. 1.That the applicant shall continue in quiet enjoyment and possession of Apartment No C6 on LR No. 330/667, Masanduku Lane, Lavington, Nairobi, pending the hearing and determination of the intended appeal
  2. 2.That costs of the application shall abide the outcome of the intended appeal

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 50
  • Court of Appeal Rules, 2010Rule 1(2)
  • Court of Appeal Rules, 2010Rule 5(2)(b)

Cases cited (10)

  • Trust Bank Limited & Another v Investech Bank Ltd & 3 Others
    Civil Application No. NAI 258 of 1999
  • East African Power Management Ltd v The Owners of the Vessel "Victoria Eight"
    NBI Civil Application No. 245 of 2009
  • Kenya Hotel Properties Ltd v Willisden Investments Ltd & Others
    Civil Application No. NAI 24 of 2012
  • Joseph Gitahi Gachau & Another v Pioneer Holdings Ltd & 2 Others
    Civil Appeal No. 124 of 2008
  • RFS v JDS
    Civil Application No. NAI 114 of 2014 (UR 89 of 2012)
  • Dhiman v Shah
    (2008) KLR 165
  • Reliance Bank Ltd v Norlake Investments Ltd
    (2002) 1 EA 227
  • Oraro & Rachier Advocates v Co-operative Bank of Kenya Ltd
    C.A No NAI. 358 of 1999
  • Sellar v Highland Railway Co.
    1919 S.C. (H.L.) 19
  • Serah Njeri Mwobi v John Kimani Njoroge
    C.A No 314 of 2009 (Mombasa)
On appeal from
High Court of Kenya at Nairobi
HCCC No. 553 of 2010
Jurisdiction invoked
Rules 1(2) and 5(2)(b) 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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Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Samiyan Kaur Devinder Singh v Speedway Investments Ltd & another [2014] KECA 355 (KLR)", Case Analysis (2013). Civil Application No. 194 of 2014 (UR 153/2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2014/355/eng@2014-10-03

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