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Court of AppealPartially AllowedCivil Application No. NAI 90 of 2013 (UR 60/2013)· [2014] KECA 358 (KLR)

Nguruman Ltd v Shompole Group Ranch & another (Civil Application 90 of 2013) [2014] KECA 358 (KLR)

Court of Appeal of Kenya
3 October 2014
20,615 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 confirmed it can revisit its own orders, then cancelled a stay of proceedings granted without an underlying notice of appeal.

What this practically means

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Executive summary

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This is a five-Judge bench ruling of the Court of Appeal at Nairobi in an application by Nguruman Limited seeking review or correction of the Court's own ruling of 19th April 2013 (Koome, Gatembu Kairu & Otieno-Odek, JJ.A), which had granted a stay of proceedings in the High Court pending an intended appeal, despite there being no notice of appeal against the Judgment of Ang'awa, J. of 2nd December 2009 and despite the fact that the order of G.B.M. Kariuki, J. refusing review was a negative order incapable of being stayed. Two separate rulings were delivered on 3rd October 2014. Nambuye, JA, after an exhaustive survey of the jurisprudence on the Court's power to revisit its own decisions (from Lakhamshi Brothers and Somanis through Rafiki Enterprises, Musiara and the five-Judge Jasbir Singh Rai decision), held that section 3A of the Appellate Jurisdiction Act and the 2010 Constitution now donate jurisdiction to revisit past decisions, subject to safeguards. Musinga, JA, concurring, held that rule 57(2) of the Court of Appeal Rules grants jurisdiction to vary or rescind an order made on an application, and that the stay of proceedings was void for want of jurisdiction, citing the rule that rule 5(2)(b) relief presupposes a notice of appeal against the order to be stayed. Both rulings set aside the order of stay of proceedings in paragraph 35 of the ruling of 19th April 2013, allowed the applicant's application, awarded costs to Nguruman Limited, and directed that Civil Appeal No. 115 of 2013 be expedited. The decision binds subordinate courts and the High Court on the requirement of a notice of appeal for rule 5(2)(b) relief and on the limited circumstances in which the Court of Appeal may revisit its own orders.

Key legal issues

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01

Whether the Court of Appeal has jurisdiction to revisit its own concluded decisions

Holding

Following the introduction of section 3A of the Appellate Jurisdiction Act and the 2010 Constitution, the Court held that jurisdiction now exists to revisit, re-open, re-hear and re-determine decisions previously determined by it, beyond the narrow slip-rule avenue, subject to safeguards against abuse, though not in respect of final judgments which remain governed by the finality principles in the Jasbir Singh Rai line of authority.

Reasoning

The Court traced the jurisprudence from the Court of Appeal for Eastern Africa (Valla, Lakhamshi, Somani) through Rafiki Enterprises, Musiara, Chris Mahinda and the five-judge Jasbir Singh Rai decision, all of which denied any review power beyond the slip rule because Parliament had not spoken. It held that Parliament has now spoken through section 3A (overriding objective) and the people through the Constitution (Articles 48, 20(3) and 159(2)(d)), so the Court can no longer hide under its previous decisions handed down under the retired constitutional regime. Safeguards against a flood of past litigation include the Court's own gatekeeping, analogy to rule 29(2), and Supreme Court certification under Article 163(4).

p. 18
02

Whether the stay of proceedings granted on 19th April 2013 was lawful

Holding

The order of stay of proceedings was granted without jurisdiction and was set aside: there was no notice of appeal against the Judgment of Ang'awa, J., the order of G.B.M. Kariuki, J. was a negative order incapable of being stayed, there were no High Court proceedings capable of being stayed, and the relief was neither sought by the respondents nor canvassed by the parties.

Reasoning

Both rulings found that the earlier bench, having correctly restated the rule that a notice of appeal confers jurisdiction under rule 5(2)(b), nonetheless detoured to grant substantive justice to the 40,000 people dependent on the suit land. Nambuye, JA held the overriding objective does not authorize a court to ignore clear rules of procedure fortified by case law. Musinga, JA held such an order, made without jurisdiction, was void and a nullity, invoking Macfoy v United Africa Co. The order was therefore rescinded under rule 57(2).

p. 31
03

Whether rule 35 (correction of errors) was an available avenue

Holding

Rule 35 was not satisfied: no clerical or arithmetical mistake or accidental slip was identified, and the impugned orders reflected the earlier Court's deliberate intention; therefore the slip rule could not be used to reopen the decision, though the review was achieved through the jurisdiction to revisit and, per Musinga, JA, rule 57(2).

Reasoning

Rule 35 permits correction only so as to give effect to the Court's intention when the judgment was given. The Court found the earlier bench had been fully alive to the absence of a notice of appeal against the Ang'awa judgment and to the negative character of the Kariuki order, and had deliberately chosen a stay of proceedings for substantive-justice reasons; reversing on rule 35 would defeat, not give effect to, that intention. Musinga, JA added that rule 35(2) presupposes an order not corresponding with a judgment, which was not the case, and that the impugned orders were not made in error.

p. 8

Legal principles established

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  • Rule 5(2)(b) relief (stay of execution, injunction or stay of proceedings) is exercisable only where a notice of appeal has been lodged against the specific decision sought to be stayed; without a notice of appeal the Court lacks jurisdiction to grant any such order.
  • A court's jurisdiction flows from the Constitution or legislation, and cannot be expanded by judicial craft or innovation; once a court realizes it has no jurisdiction it must down its tools.
  • The Court of Appeal, under rule 57(2) of its Rules, has jurisdiction to vary or rescind an order made on an application to the Court.
  • No stay order is capable of being issued by a court of law against a negative order, such as a dismissal or a striking out order.
  • The overriding objective (section 3A of the Appellate Jurisdiction Act) emboldens the Court to be guided by a broad sense of justice and fairness but does not operate to uproot established principles and procedures.
  • The Court may depart from its earlier decisions only on recognized grounds (per incuriam, conflict with a later Supreme Court decision) and not without justifiable cause; a departure must not act contrary to the Constitution and statute.

Court orders

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  1. 1.Partial review of paragraphs 30, 31, 32, 33, 34 and 35 of the ruling delivered on 19th April 2013 in Nairobi Civil Application No. NAI 18 of 2012 (UR 13/2012).
  2. 2.Setting aside of the order of stay of proceedings contained in paragraph 35 of the ruling of 19th April 2013.
  3. 3.Allowance of the preliminary objection dated 20th March 2012 and dismissal of the notice of motion dated 27th January 2012 (per Musinga, JA, granting prayers 2, 3, 4 and 5 of the application dated 25th April 2013).
  4. 4.Costs of the application to the applicant (Nguruman Limited).
  5. 5.Direction that Civil Appeal No. 115 of 2013 be expedited.
On appeal from
Court of Appeal of Kenya
Civil Application No. NAI 18 of 2012 (UR 13/2012)
Jurisdiction invoked
Sections 3(2), 3A and 3A of the Appellate Jurisdiction Act (Cap 9); Rules 1(2), 35, 42 and 57(2) of the Court of Appeal Rules, 2010; Article 159(2)(d) of the Constitution of Kenya, 2010

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Nguruman Ltd v Shompole Group Ranch & another (Civil Application 90 of 2013) [2014] KECA 358 (KLR)", Case Analysis (2014). Civil Application No. NAI 90 of 2013 (UR 60/2013). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2014/358/eng@2014-10-03

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