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Court of AppealAllowedCivil Application No. NAI 238 of 2015 (UR 197/2015)· [2015] KECA 169 (KLR)

DHL Exel Suppl Chain Kenya Limited v Tilton Investments Limited [2015] KECA 169 (KLR)

Court of Appeal of Kenya
4 December 2015
2,385 words in judgment
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The bottom line

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Kenya's Court of Appeal gave DHL more time to seek permission to appeal an arbitration ruling, confirming courts focus on delay explanations, not case merits, at this stage.

What this practically means

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Executive summary

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This is a single-judge ruling of the Court of Appeal at Nairobi by Mwilu, JA, on a notice of motion by DHL Exel Suppl Chain Kenya Limited seeking extension of time to file an application for leave to appeal against a ruling of the High Court (J. Kamau, J) dated 21st July 2015 dismissing its application under sections 35(2)(a)(iv) and 35(2)(b)(ii) of the Arbitration Act to set aside an arbitral award. The applicant filed its notice of appeal within two days but took approximately forty-eight days to file the leave application, exceeding the fourteen-day period in rule 39 by thirty-four days. The court excused eleven days attributable to obtaining a signed copy of the ruling and found the remaining twenty-three-day delay satisfactorily explained and not inordinate, while criticising counsel's reliance on client consultations as an excuse. The judge declined to examine the merits of the intended leave application or the intended appeal, including the point of law of general importance said to arise under section 39(3)(b) of the Arbitration Act, holding that this was a matter for the court seized of the leave application. The motion was allowed, with costs to abide the outcome of the intended leave application, and the leave application was to be filed within twenty-one days failing which the extension would lapse automatically. The respondent's reliance on the five-judge decision in Nyutu Agrovet and Karisa Chengo did not dissuade the court at this interlocutory stage.

Key legal issues

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01

Scope of the extension-of-time inquiry

Holding

The application is decided on delay length, explanation and arguability considerations, not on the merits of the intended application for leave to appeal.

Reasoning

The court distinguished between the present extension-of-time application and the intended application for leave under section 39(3)(b) of the Arbitration Act. Because the applicant was not yet seeking leave, the judge confined himself to the discretionary factors - length of delay, explanation, and effect on the other party - leaving the merits of leave to be argued before the trial court.

p. 3
02

Whether the delay of thirty-four days beyond the fourteen-day rule 39 period was inordinate

Holding

The eleven days taken to obtain a signed ruling were excused and the remaining delay of approximately twenty-three days was explained and not inordinate.

Reasoning

The applicant filed its notice of appeal within two days of the ruling and promptly requested certified proceedings. Of the forty-eight-day total, eleven days were attributable to obtaining a signed copy of the ruling, leaving twenty-three days explained by consultations and receipt of instructions, which the court found satisfactorily explained and not inordinate, though it censured counsel for attributing delay to consultations.

p. 4
03

Access to court on extension-of-time applications

Holding

Access to court should not be barred on the basis of an assessment of the merits of the intended case at the extension-of-time stage.

Reasoning

The judge held that it was not his province, at the extension stage, to pre-empt the leave application or deny the applicant access to the court based on his view of the strength of the intended appeal; the respondent would have full opportunity to oppose the leave application before the trial court.

p. 4

Legal principles established

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  • An application for extension of time is discretionary and is determined on the length of delay, the explanation for the delay, and whether the delay is inordinate or excusable.
  • On an extension-of-time application the court should not delve into the merits of the intended application for leave or the intended appeal.

Court orders

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  1. 1.The Notice of Motion dated 7th September 2015 and filed on 9th September 2015 is allowed
  2. 2.Costs to abide by the outcome of the intended application for leave to appeal
  3. 3.The application for leave to appeal to be filed within 21 days of the date of the ruling, in default of which the extension of time granted shall automatically lapse

Authorities

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Legislation

  • Appellate Jurisdiction Actsections 3A, 3B
  • Court of Appeal Rulesrules 4, 39, 42, 43, 75(4)
  • Arbitration Actsections 35(2)(a)(iv), 35(2)(b)(ii), 35(2)(iv), 39, 39(3)(b)
  • Arbitration Rulesrule 7

Cases cited (4)

  • Nyayo Tea Zones Development Corporation v Njuca Consolidated Company Limited
    Civil Appl. No. Nai 192 of 2014 (unreported)
  • Aviation Cargo Support Limited v St. Mark Freight Services Limited
    [2014] eKLR
  • Nyutu Agrovet Limited v Airtel Networks Limited
    [2015] eKLR
  • Karisa Chengo, Jefferson Kalama Kengha & Kitsao Charo Ngati v Republic
    [2015] eKLR
On appeal from
High Court of Kenya at Nairobi
Miscellaneous Civil Application No. 507 of 2014
Jurisdiction invoked
Sections 3A and 3B of the Appellate Jurisdiction Act and rules 4, 39, 42 and 43 of the Court of Appeal Rules

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "DHL Exel Suppl Chain Kenya Limited v Tilton Investments Limited [2015] KECA 169 (KLR)", Case Analysis (2015). Civil Application No. NAI 238 of 2015 (UR 197/2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2015/169/eng@2015-12-04

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