Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
Court of AppealPartially AllowedCivil Application No. Nai 39 of 2009 (as consolidated with Civil Application No. 305 of 2013)· [2014] KECA 856 (KLR)

Kensilver Express Limited & 137 Others v The Commissioner Insurance & 3 Others

Court of Appeal
31 January 2014
5,063 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

#

Kenya's Court of Appeal refused to strike out defective appeal notices, choosing to fix procedural mistakes rather than end the case on a technicality.

What this practically means

#

Executive summary

#
This is a joint ruling of the Court of Appeal at Nairobi (Nambuye, Warsame and G.B.M. Kariuki JJA) on two consolidated interlocutory applications arising from an intended appeal against the judgment of Ang'awa J of 18 December 2007 in HC. Misc. Civil Suit No. 1345 of 2005, in which the High Court found the insurance Regulator liable for colossal unpaid claims. Kensilver Express Limited and 137 others applied to strike out the respondents' Notices of Appeal for failure to lodge records of appeal within sixty days and failure to serve the Notice of Appeal on all parties. The Commissioner of Insurance cross-applied for leave to amend the Notice of Appeal, extend time, and serve it by advertisement in the Daily Nation, explaining that the lapse arose under the Attorney General's representation before the Insurance Regulatory Authority acquired its own counsel. The court declined to strike out the Notices of Appeal, reasoning that striking out would not deliver the fruits of judgment given an open-ended stay of execution in Civil Application No. 7 of 2008, and would merely allow the appellate process to restart, prolonging litigation contrary to the overriding objective in Sections 3A and 3B of the Appellate Jurisdiction Act and Article 159(2)(d) of the Constitution. It allowed the amendment, granted fourteen days for service by advertisement, gave sixty days to lodge the record of appeal, and awarded fixed costs of Kshs.30,000/= in each application, with the dismissal in the first application standing discharged if the record was not lodged in default.

Key legal issues

#
01

Whether striking out the Notices of Appeal serves the ends of justice

Holding

No. Striking out would not give the applicants automatic access to the fruits of judgment because of the subsisting open-ended stay order, and would merely prolong litigation by allowing a fresh appellate process.

Reasoning

The court weighed the admitted procedural lapses against the overriding objective in Sections 3A and 3B of the Appellate Jurisdiction Act and Article 159(2)(d) of the Constitution. Because an open-ended stay in Civil Application No. 7 of 2008 already blocked execution, striking out would not deliver the judgment's fruits and would simply restart the appellate process, prolonging the controversy without final determination.

p. 6
02

Whether the delay in seeking to amend and serve the Notice of Appeal was inordinate

Holding

No. The delay of about one year and eight months since new counsel came on record was not inordinate, being accounted for by participation in numerous applications and perusal of numerous files before discovering the lapse.

Reasoning

The court measured delay from when Senior Counsel Lucy Kambuni came on record in 2012, finding the roughly two-year period sufficient to cover participation in offshoot litigation, perusal of files, discovery of the lapse and steps to rectify it. It found nothing to displace counsel's explanation for how the lapse arose.

p. 7
03

Whether parties omitted from the Notice of Appeal must first be joined by leave

Holding

No. Where affected parties were neither cited in the heading of the Notice of Appeal nor served with it, the correct procedure is leave to amend followed by leave to serve out of time; prior leave to join is unnecessary.

Reasoning

The court held that parties who participated in or were affected by the High Court proceedings would ordinarily be brought into the appeal by citation in the heading of the Notice of Appeal and service. Where that procedural lapse exists, the cure is amendment and out-of-time service, not a prior joinder application, which would only have been needed had the amendment application been filed in the other file.

p. 7
04

Factors governing extension of time applications

Holding

The decision to extend time is discretionary, guided by the length of and reason for delay, chances of success, prejudice to the respondent, public importance and the interests of justice.

Reasoning

The court restated the settled framework from Sila Leo Mutiso v Rose Hellen Wangari Mwangi, as enriched by African Airlines International (all relevant factors under unfettered discretion), Githiaka v Nduriri (public importance and interests of justice) and Delphis Bank v Recco Builders (a defaulting party may seek leave to regularise a Notice of Appeal).

p. 6

Legal principles established

#
  • Rules of procedure are handmaids of justice, not yokes of oppression, and must be obeyed but not applied to defeat substantive justice
  • Where parties affected by an appeal were neither cited in the heading of the Notice of Appeal nor served with it, the correct cure is leave to amend and serve out of time, not prior leave to join them
  • The exercise of judicial discretion is wide and unfettered but must be exercised judicially, not on whim, caprice or sympathy
  • Courts should not automatically strike out a pleading but first consider whether striking out conforms with the overriding objective and whether alternatives exist

Court orders

#
  1. 1.In Civil Application No. 39 of 2009, prayers 2 and 3 dismissed
  2. 2.Applicants in No. 39 of 2009 awarded costs of Kshs.30,000/= payable by the respondents within 10 days, failing which the application stands allowed
  3. 3.Respondents given sixty (60) days from the date of the ruling to lodge the record of the intended appeal
  4. 4.In default of lodging the record, the dismissal orders in No. 39 of 2009 shall stand discharged
  5. 5.In Civil Application No. 305 of 2013, prayer 2 allowed; the Notice of Appeal amended in terms of the draft annexed as SMM2
  6. 6.Applicants in No. 305 of 2013 given fourteen (14) days to serve the amended Notice of Appeal by advertisement once in the Daily Nation on all parties
  7. 7.Respondents to No. 305 of 2013 awarded costs of Kshs.30,000/= payable by the applicant
  8. 8.Parties to proceed according to law and on priority basis

Authorities

#

Legislation

  • Appellate Jurisdiction ActSection 3(2)
  • Appellate Jurisdiction ActSection 3A
  • Appellate Jurisdiction ActSection 3B
  • Court of Appeal RulesRule 80
  • Court of Appeal RulesRule 1(2)
  • Court of Appeal RulesRule 4
  • Court of Appeal RulesRule 17(1)
  • Court of Appeal RulesRule 41
  • Court of Appeal RulesRule 42(1)
  • Court of Appeal RulesRule 44
  • Court of Appeal RulesRule 47(1)
  • Constitution of Kenya 2010Article 159(2)(d)
  • Insurance Act Cap 487amended by Legal Notice No. 11 of 2006

Cases cited (10)

  • Harry Njai v Taita Ranching Co. Limited
    Mombasa Civil Application No. 255 of 2010 (UR)

    Sections 3A, 3B and Article 159 were meant to avoid delay caused by technicalities

  • Board of Trustees National Social Security Fund & Six Others v Meshack Owino Onyango (suing as legal representative of the Estate of Silas Ochieng Onyango (deceased)
    Nairobi CA (Application) No. 87 of 2007 (UR)

    Courts must administer justice without undue regard to procedural technicalities and give effect to the overriding objective

  • Deepak Chamanla Kamani & another v Kenya Anti-Corruption Commission & 3 Others
    Nairobi CA (Application) 152 of 2009

    Courts must not automatically strike out pleadings but consider alternatives consistent with the overriding objective

  • BIGU 221 v Bank Leisure PLC
    [1999] I.W.L.R 1926

    Lord Woolf's inspiration for the overriding objective approach to striking out

  • City Chemist (NRB) & Others v Oriental Commercial Bank Limited
    Civil Application No. Nai (Application) 302 of 2008 (UR 199/2008)

    The new thinking enriches rather than uproots established principles on judicial discretion

  • Housing Finance Company of Kenya v Rose Wangari Ndegwa R.
    Mombasa CA (Application) 83 of 2008 (U.R)

    Declined to strike out a record of appeal for minor procedural lapses capable of rectification

  • Githiaka v Nduriri
    (2004) 2 KLR 67

    Judicial discretion must be exercised judicially; public importance and interests of justice are additional extension-of-time factors

  • Sila Leo Mutiso v Rose Hellen Wangari Mwangi
    [1999] 2 EA 231

    Factors for extension of time: length and reason of delay, chances of success, prejudice to respondent

  • African Airlines International Limited v Eastern and Southern African Trade & Development Bank (PTA)
    [2003] KLR 140

    Court enjoined to take into account all relevant factors in exercising its unfettered discretion

  • Delphis Bank Limited v Recco Builders Limited & Another
    [2005] 346

    A defaulting party is not precluded from seeking leave to regularise a Notice of Appeal

On appeal from
High Court of Kenya at Nairobi
HC. Misc. Civil Suit No. 1345 of 2005
Jurisdiction invoked
Sections 3(2), 3A and 3B of the Appellate Jurisdiction Act (Cap 9) and Rules 1(2), 4, 17(1), 41, 42(1), 44, 47(1) and 80 of the Court of Appeal Rules

Key timeline

#

Practical implications

#

Frequently asked questions

#

Later judgments citing this (1)

#

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

Cite this brief

#

Cite this brief

Caselaw, "Kensilver Express Limited & 137 Others v The Commissioner Insurance & 3 Others", Case Analysis (2014). Civil Application No. Nai 39 of 2009 (as consolidated with Civil Application No. 305 of 2013). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2014/856/eng@2014-01-31

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