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Court of AppealDismissedCivil Appeal No. 58 of 2006· [2015] KECA 747 (KLR)

Flystar Limited v Delphis Bank Limited [2015] KECA 747 (KLR)

Court of Appeal
8 May 2015
3,357 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal ruled that a defective verifying affidavit doesn't kill a lawsuit, confirming judges can fix procedural errors rather than striking out entire cases.

What this practically means

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Executive summary

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The Court of Appeal (Githinji, Musinga & J. Mohammed, JJ.A) dismissed Flystar Limited's appeal against a High Court ruling (Azangalala, J) which had partially set aside ex parte judgment entered against Flystar in a suit by Delphis Bank Limited. The trial judge had found that the verifying affidavit accompanying the plaint was commissioned by an advocate without a valid practising certificate and was therefore null and void; he struck out the affidavit but, exercising discretion under Order VII rule 1(3), declined to strike out the plaint and instead ordered the plaintiff to file a compliant verifying affidavit. He also found that summons had not been properly served, and accordingly set aside the default judgment ex debito justitiae and granted the defendant leave to file its defence, with no order as to costs. The appellant argued on appeal that the judge exceeded his jurisdiction by striking out the affidavit and granting leave to file a compliant one when no application had been made, and erred in denying costs despite finding no proper service. The Court of Appeal held that Order VII rule 1(3) empowered the judge to act on his own motion, that striking out a plaint is a draconian remedy to be exercised rarely, and that procedural lapses not going to jurisdiction or fundamental prejudice should not nullify proceedings. Applying Mbogo v Shah and related authorities, the court found no basis to interfere with the judge's discretion on the affidavit or on costs, and dismissed the appeal. The decision affirms the principle that courts should favour substantial justice over procedural technicality where a defect is curable.

Key legal issues

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01

Power of the court to act suo motu in striking out a non-compliant verifying affidavit

Holding

Order VII rule 1(3) expressly empowers the court, of its own motion, to strike out a non-compliant verifying affidavit and the judge did not exceed his jurisdiction in doing so and in allowing a compliant affidavit to be filed.

Reasoning

The appellant argued that the judge determined issues not raised by any application. The court held that Order VII rule 1(3) permits the court to act of its own motion or on the defendant's application. The judge struck out the defective affidavit but, exercising discretion, declined to strike out the plaint, instead ordering a compliant affidavit within seven days. This fell squarely within the rule and did not exceed jurisdiction.

p. 5
02

Consequences of a verifying affidavit commissioned by an advocate without a valid practising certificate

Holding

Such a verifying affidavit is a nullity, but the defect does not automatically doom the plaint; the court retains discretion to save the suit by striking out only the affidavit and requiring a compliant one.

Reasoning

Following Kenya Commercial Bank v Kenya Hotels, the trial judge found the affidavit was commissioned by an advocate without a practising certificate and was therefore null and void. However, the Court of Appeal endorsed the principle that rules of procedure are handmaidens of justice: deviations not going to jurisdiction or causing fundamental prejudice should not nullify proceedings, and a suit showing even a semblance of a cause of action curable by amendment should proceed.

p. 5
03

Interference with judicial discretion on costs

Holding

The trial judge's order that there be no order as to costs was a discretionary exercise with some basis (the appellant's belated resort to court when threatened with execution) and would not be disturbed.

Reasoning

Section 27 of the Civil Procedure Act makes costs discretionary and provides that costs follow the event unless the court for good reason otherwise orders. Relying on Devram Nanji Dattani v Haridas Kalidas Dawda and Supermarine Handling Services Ltd v Kenya Revenue Authority, the court held it would not interfere where grounds exist for the judge's discretion. The judge's discretionary power here was properly exercised.

p. 6
04

Duty of a first appellate court

Holding

A first appellate court is entitled to reconsider the evidence, evaluate it and draw its own conclusions while making allowance for not having seen or heard the witnesses.

Reasoning

In framing its approach, the court cited Selle v Associated Motor Boat Company Ltd, Kenya Ports Authority v Kuston (Kenya) Ltd and Pil Kenya Ltd v Oppong for the standard of review on a first appeal. This framed the standard of review applied to the findings under appeal but was not itself decisive of the outcome.

p. 4

Legal principles established

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  • An appellate court will not interfere with a trial judge's exercise of discretion on striking out a plaint or on costs unless the judge misdirected himself, exercised discretion on wrong principles, or the decision was clearly wrong resulting in injustice.
  • Where a verifying affidavit is defective but the plaint shows a cause of action, the court may strike out only the affidavit and allow the filing of a compliant one; striking out the plaint is a draconian measure of last resort.
  • Procedural lapses that do not go to jurisdiction or cause fundamental prejudice should not nullify proceedings.
  • An appellate court will not interfere with a trial judge's discretion on costs where there is some ground supporting its exercise; it may interfere where no reasons are given and the order is wrong.

Court orders

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  1. 1.Appeal dismissed

Authorities

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Legislation

  • Civil Procedure Rules (repealed)Order VII rule 1(2) and 1(3)
  • Civil Procedure Rules (repealed)Order V rule 26(1)
  • Civil Procedure Rules (repealed)Order VIII
  • Civil Procedure RulesOrder 4 rule 1(2)
  • Civil Procedure ActSection 27
  • Oaths and Statutory Declarations Actnot specified

Cases cited (11)

  • Kenya Commercial Bank Ltd and Another v Kenya Hotels Ltd
    No. Nai 40 of 2004 (UR 24/2004)
  • Mbogo v Shah
    [1968] EA 93
  • Selle v Associated Motor Boat Company Ltd
    [1968] EA 123
  • Kenya Ports Authority v Kuston (Kenya) Ltd
    [2009] 2 EA 212
  • Pil Kenya Ltd v Oppong
    (2009) KLR 442
  • Microsoft Corporation v Mitsumi Computer Garage Ltd & Another
    [2001] KLR 470
  • Pastificio Lucio Garofalo Spa v Security & Fire Equipment Co & Another
    [2001] KLR 483
  • Salesio M'aribu v Meru County Council
    Civil Appeal No. 183 of 2002
  • Kenya Commercial Finance Company Limited v Richard Akwesera Onditi
    Civil Appl No. Nai 329 of 2009
  • Devram Nanji Dattani v Haridas Kalidas Dawda
    [1949] EACA 35
  • Supermarine Handling Services Ltd v Kenya Revenue Authority
    Civil Appeal No. 85 of 2006 [2010] eKLR
On appeal from
High Court of Kenya at Nairobi
HCCC No. 447 of 2002
Jurisdiction invoked
First appeal to the Court of Appeal under the Civil Procedure Act / Appellate jurisdiction (not expressly stated in the judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (5)

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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, "Flystar Limited v Delphis Bank Limited [2015] KECA 747 (KLR)", Case Analysis (2015). Civil Appeal No. 58 of 2006. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2015/747/eng@2015-05-08

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