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Court of AppealAllowedCivil Appeal No. 110 of 2012

Margaret Njeri Mbugua v Kirk Mweya Nyaga [2016] KECA 288 (KLR)

Court of Appeal
12 August 2016
4,225 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 that a bare denial is no defence to a debt claim, reinstating judgment against a defendant who merely denied owing money.

What this practically means

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Executive summary

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This second appeal arose from a debt claim of Kshs 760,000 plus interest. The trial magistrate allowed the appellant's chamber summons under the repealed Order VI Rule 13(1)(a) & (b), struck out the respondent's defence as a mere denial raising no triable issue, and entered judgment for the appellant. The High Court (Angawa, J) allowed the respondent's first appeal, holding that the appellant should have proceeded by way of summary judgment under Order XXXV Rule 2, and set aside the trial court's decision, directing a full trial. The Court of Appeal allowed the appellant's second appeal. It held that while a first appellate court may decide an appeal on grounds outside the memorandum of appeal under Order 42 Rule 4, the proviso requiring a sufficient opportunity to contest the new ground must be observed; here the Judge decided the appeal on a procedural ground never raised or argued. The Court further clarified the distinction between striking out pleadings under Order VI Rule 13 and summary judgment under Order XXXV, holding the magistrate properly exercised the striking-out jurisdiction, and that a combined application under grounds (a) and (b) is not defective merely because it is supported by affidavit evidence, since the evidence bar applies only to ground (a). Applying authority that a mere denial is not a sufficient defence to a liquidated claim, and noting the respondent's affidavit more or less admitted receipt of the money, the Court held the striking out was proper. The Court set aside the High Court's judgment, reinstated the trial magistrate's orders striking out the defence and entering judgment for the appellant, and awarded costs to the appellant in both courts.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether a first appellate court may rest its decision on a ground other than those set out in the memorandum of appeal, and if so on what conditions
  2. 2.Whether the High Court erred in treating the appellant's application under Order VI Rule 13 as an application for summary judgment under Order XXXV
  3. 3.Whether the respondent's defence raised a reasonable triable issue and whether the trial magistrate properly struck it out and entered judgment

Key legal issues

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01

Scope of Order 42 Rule 4 on grounds outside the memorandum of appeal

Holding

The High Court had power to consider a new ground but erred because the proviso was not complied with - no opportunity was given to argue the new ground.

Reasoning

Order 42 Rule 4 confines the appellant to grounds in the memorandum but expressly permits the High Court to decide the appeal on other grounds. The proviso requires that the party affected be given sufficient opportunity to contest the case on that ground. The record showed the issue of wrong procedure for summary judgment was never raised by the respondent nor did the Judge invite argument on it, so the proviso was breached.

p. 4
02

Distinction between striking out under Order VI Rule 13 and summary judgment under Order XXXV

Holding

The trial magistrate properly exercised the distinct jurisdiction under Order VI Rule 13; the Judge misdirected herself in construing the application as one for summary judgment.

Reasoning

Order VI Rule 13 empowers the court on striking out a pleading to order the suit stayed, dismissed or judgment entered. Order XXXV provides a separate summary judgment procedure for liquidated demands. The appellant chose the striking-out route, and having found no reasonable defence, the magistrate could properly enter judgment. The Judge's contrary holding was wrong.

p. 5
03

Defect of affidavit evidence in a combined Order VI Rule 13 application

Holding

No defect: evidence may support a ground (b) limb even if inadmissible for a ground (a) limb.

Reasoning

Order VI Rule 13(2) bars evidence only for applications under sub-rule (1)(a). Because the application also invoked ground (b) (scandalous, frivolous or vexatious), affidavit evidence was permissible, and combining the two grounds is lawful.

p. 7
04

Duty of a first appellate court

Holding

The Judge failed to re-evaluate the application, affidavit evidence and reply as required of a first appellate court.

Reasoning

A first appellate court must reconsider the evidence, evaluate it and draw its own conclusions. The Judge should have considered the striking-out application, the supporting affidavit and the respondent's reply, but instead decided on a procedural ground, thereby failing to consider matters she should have considered - an error of law cognizable on second appeal.

p. 5
05

Sufficiency of the defence

Holding

The defence was a general denial; the respondent's affidavit more or less admitted receiving the money while demanding proof, so striking out was proper.

Reasoning

The plaint detailed the transaction; the respondent gave no fair and substantial answer, merely denying generally and demanding proof of an admitted deposit. Authorities hold a mere denial insufficient for a liquidated claim, so no reasonable defence was disclosed and judgment properly followed.

p. 7

Legal principles established

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  • A second appeal is confined to matters of law only.
  • A first appellate court may decide an appeal on a ground not in the memorandum of appeal, but only if the party affected had sufficient opportunity to contest that ground.
  • An application to strike out a pleading may combine grounds (a) and (b) of Order VI Rule 13(1); evidence is only barred for ground (a) applications.
  • A mere denial or general traverse is not a sufficient defence to a claim for a debt or liquidated amount.

Court orders

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  1. 1.Judgment and order of the learned Judge of the High Court set aside
  2. 2.Order of the trial magistrate striking out the respondent's defence and entering judgment in favour of the appellant as prayed in the plaint reinstated
  3. 3.Costs of the appeal in the High Court and in this Court awarded to the appellant

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

majority

Wrote the judgment

majority

Wrote the judgment

On appeal from
High Court of Kenya at Nairobi
HCCA No. 574 of 2010
Jurisdiction invoked
Section 72 of the Civil Procedure Act (second appeal on matters of law only)

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Accordingly, we set aside the judgment and order of the learned Judge and reinstate the order of the trial magistrate striking out the respondent’s defence and entering judgment in favour of the appellant as prayed in the plaint.
p. 7Final orders - appeal allowed
A mere denial is not a sufficient defence and a defendant has to show either by affidavit, oral evidence, or otherwise, that there is a good defence.
p. 7Sufficiency of defence to a liquidated claim
There is nothing to prevent an applicant from combining his application under grounds (a) and (b) as the appellant did.
p. 7Combined striking-out grounds
As the power to strike out pleadings is exercised without the court being fully informed on the merits of the case, through discovery and oral evidence, it should be used sparingly and cautiously.
p. 6Caution in exercising striking-out power
The learned Judge was therefore quite right in considering a ground other than those to be found in the memorandum of appeal. However the proviso to Order 42 Rule 4 had to be complied with.
p. 3First appellate court and new grounds

Issues in the judgment

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minor

The judgment refers inconsistently to Order XXXV Rule 2 and Order XXXV Rule 1 as the summary judgment provision.

minor

The judgment inconsistently gender-references the appellant ('The appellant brought his application...') who is the female appellant Margaret Njeri Mbugua.

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, "Margaret Njeri Mbugua v Kirk Mweya Nyaga [2016] KECA 288 (KLR)", Case Analysis (2016). Civil Appeal No. 110 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2016/288/eng@2016-08-12

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