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Court of AppealAllowedCivil Appeal No. 291 of 2010· [2016] KECA 402 (KLR)

Samson Karino Ole Nampaso v Kaana Ka Arume Co. Ltd [2016] KECA 402 (KLR)

Court of Appeal of Kenya
14 July 2016
1,727 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 any High Court judge can set aside a default judgment obtained against you, and it did exactly that here.

What this practically means

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Executive summary

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The appellant, defendant in H.C.C.C. No. 195 of 2004, was condemned to judgment by Koome J. on 28th September 2007 after his advocate's application for an adjournment was refused and the respondent's case proceeded ex-parte. His application to set aside that judgment under Section 63(A) of the Civil Procedure Act and Order IXB Rule 8 of the Civil Procedure Rules was dismissed by Ouko J., who declined to revisit findings made by Koome J., a judge of coordinate jurisdiction, holding that her decision could only be challenged on appeal. The Court of Appeal allowed the appeal. It held, following its earlier decision in Ngok, that a judge other than the one who entered an ex-parte judgment may exercise the Order 9B Rule 8 jurisdiction without sitting in appeal over a coordinate judge; the learned Judge's refusal to follow that binding holding without reasons amounted to abdication of jurisdiction. The Court restated the settled principles for setting aside ex-parte judgments, drawn from Shah v Mbogo as upheld in Mbogo v Shah: the discretion must be exercised judicially to avoid injustice from accident, inadvertence or excusable mistake, not to reward deliberate obstruction, and the court must consider whether a triable defence exists. The Judge had considered neither the merits nor the defence on file, which allegedly raised triable issues including non-existence of a title, privity of contract and statutory time bar. The discretion was therefore wrong in principle, attracting appellate intervention. The High Court ruling was set aside, Koome J.'s ex-parte judgment and the resultant decree were set aside, and the suit was remitted to the High Court for expeditious hearing on merit, with each party bearing its own costs of the appeal.

Key legal issues

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01

Whether a judge of concurrent jurisdiction may entertain an application to set aside an ex-parte judgment entered by a fellow judge

Holding

Yes; the jurisdiction under Order 9B Rule 8 may be exercised by a judge other than the one who entered the ex-parte judgment, and doing so does not amount to sitting on appeal over a coordinate judge.

Reasoning

The Court of Appeal had previously held, in the Ngok case, that such an application is permissible and does not amount to sitting in appeal. The learned Judge expressly acknowledged that holding yet declined to follow it without giving discernible reasons. In doing so he failed to follow a binding precedent of this Court and effectively abdicated the jurisdiction donated by the Rules, denying the appellant a recognised mode of relief.

p. 3
02

The principles governing the setting aside of ex-parte judgments

Holding

The discretion is to be exercised judicially and judiciously on clear principle to avoid injustice or hardship from accident, inadvertence or excusable mistake, but not to assist deliberate obstruction or delay; the court must also consider whether a triable defence exists.

Reasoning

Relying on Shah v Mbogo, as upheld in Mbogo v Shah, the Court restated the settled principles. The learned Judge failed to consider the application on merits, failed to assess whether the appellant's absence was due to excusable mistake or inadvertence, and made no mention of the defence on file, which allegedly raised triable issues including non-existence of a title deed, privity of contract and statutory time bar. That failure was wrong in principle.

p. 3
03

Whether the appellate Court should interfere with the High Court's exercise of discretion

Holding

Yes; because the Judge turned his back on a litigant who demonstrated excusable mistake and arguably a good defence, his discretion was exercised wrongly in principle, inviting appellate intervention.

Reasoning

An appellate court interferes with discretion where it is exercised on a wrong principle or by overlooking material matters. Citing CMC Holdings Ltd v Nzioki and Patel v E.A. Cargo Handling Services Ltd, the Court found the Judge failed to consider the application on merits and the defence filed, so the discretion was wrongly exercised and had to be set aside.

p. 3

Legal principles established

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  • A judge other than the one who entered an ex-parte judgment may exercise the jurisdiction under Order 9B Rule 8 to set it aside without sitting in appeal over a judge of concurrent jurisdiction.
  • The discretion to set aside an ex-parte judgment must be exercised judicially and judiciously on clear principle, to avoid injustice from accident, inadvertence or excusable mistake, not to assist deliberate obstruction or delay.
  • In an application to set aside an ex-parte judgment, the court must consider whether the defendant has a defence raising a triable issue; if so, the defence should be allowed to be ventilated on merit.
  • A judge who declines to exercise the setting-aside jurisdiction for an applicant properly before him, diverting the applicant to appeal, abdicates his jurisdiction and errs in principle, inviting appellate interference.

Court orders

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  1. 1.The orders of the High Court are set aside
  2. 2.Substituted with an order setting aside the judgment of Koome J. dated 28th September and the resultant decree
  3. 3.The suit is remitted to the High Court for expeditious hearing on merit
  4. 4.Each party shall bear its own costs of the appeal

Authorities

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Legislation

  • Civil Procedure ActSection 63(A)
  • Civil Procedure RulesOrder IXB Rule 8 (Order 9B Rule 8)

Cases cited (5)

  • Joseph Nathaniel Kipruto Arap Ngok v Attorney General & Another
    Civil Appeal No. 326 of 2005
  • Shah v Mbogo & Another
    [1967] EA 116
  • Mbogo v Shah
    [1968] EA 93
  • CMC Holdings Limited v Nzioki
    [2004] KLR 173
  • Patel v E.A. Cargo Handling Services Ltd
    [1974] EA 75
On appeal from
High Court of Kenya at Nakuru
H.C.C.C. No. 195 of 2004
Jurisdiction invoked
First appellate jurisdiction over appeals from the High Court (Court of Appeal Act / Constitution Article 164); appeal against a ruling dismissing an application under Order 9B Rule 8 of the Civil Procedure Rules

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (8)

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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, "Samson Karino Ole Nampaso v Kaana Ka Arume Co. Ltd [2016] KECA 402 (KLR)", Case Analysis (2016). Civil Appeal No. 291 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2016/402/eng@2016-07-14

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