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Court of AppealPartially AllowedCivil Appeal No. 311 of 2006

Rose Detho v Ratilal Automobiles & others [2018] KECA 50 (KLR)

Court of Appeal of Kenya
20 December 2018
6,515 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 ruled that unclear or invalid court orders cannot send anyone to jail for contempt, even if the person knew about the order.

What this practically means

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Executive summary

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This appeal, heard with the related Civil Appeal No. 279 of 2006, challenged a ruling of the High Court at Eldoret (Gacheche, J.) dated 24th November 2006 finding Rose Detho, the statutory manager of Charterhouse Bank appointed by the Central Bank of Kenya, in contempt of ex parte stay orders granted at the leave stage of judicial review proceedings brought by Ratilal Automobiles Limited and others, and directing her to regularise her position within thirty-six hours or face six months' imprisonment. The Court of Appeal framed four issues: whether the order was served on the appellant; whether she had knowledge of it; whether it was disobeyed; and whether the High Court exceeded its jurisdiction in granting the stay. The Court held that service on the appellant's assistant was proper and that knowledge of an order suffices for contempt, notice having been established by service on the assistant, newspaper advertisement and a letter from the Bank's managing director enclosing the order. However, the Court found no deliberate or wilful disobedience: the acts complained of were either outside the appellant's statutory duties or impossible to perform lawfully, and the impugned orders were imprecise and partly granted in excess of jurisdiction, since an ex parte mandatory injunction cannot issue in judicial review proceedings and an order made without jurisdiction cannot attract contempt sanctions. The Court allowed the appeal, set aside the ruling, substituted an order dismissing the contempt notice of motion, and awarded costs of the appeal to the appellant.

Questions the Court framed

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

  1. 1.Whether service of the order was effected upon the appellant
  2. 2.Whether the appellant had knowledge of the order
  3. 3.Whether the order was disobeyed
  4. 4.Whether in granting the order of stay in the manner it did the High Court exceeded its jurisdiction

Key legal issues

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01

Whether personal service of the contempt order was effected on the appellant

Holding

Service on the appellant's assistant was proper; the burden lay on the appellant to demonstrate that service was improper, and she failed to discharge it.

Reasoning

The process server made several attempts at personal service before serving the assistant, and the affidavit of service set out those unsuccessful efforts. Service upon an authorised officer or assistant of a public or corporate entity is deemed service on the principal, following the Wambora decision. The appellant did not discharge the burden of showing improper service.

p. 6
02

Whether knowledge of the order suffices for contempt

Holding

Knowledge of an order is sufficient for contempt purposes; notice was established by service on the assistant, newspaper advertisement by way of substituted service, and a letter notifying the appellant of the order.

Reasoning

Relying on Mate v Wambora, the Court held that a person can only be held in contempt where it is proved beyond a shadow of doubt that they had full knowledge or notice of the order. Here notice was established through substituted service by newspaper advert and a letter from the Bank's Managing Director enclosing the order, making it highly unlikely that the appellant was unaware of it.

p. 6
03

Whether the appellant was in deliberate disobedience of the order

Holding

The appellant was not in wilful disobedience; the acts complained of were either outside her statutory duties as statutory manager or impossible to perform without breaching the law, and the orders were imprecise.

Reasoning

The Clearing House was an organ of the Kenya Bankers Association over which neither the appellant nor CBK had control. The appellant had lawfully declared a moratorium and could not honour bills of exchange without breaching the law. The orders were not clear, precise and capable of execution by her, and some had been granted in excess of jurisdiction.

p. 8
04

Whether the High Court exceeded its jurisdiction in granting the stay orders

Holding

The High Court lacked jurisdiction to grant some of the ex parte orders, including an interlocutory ex parte mandatory order; such an order is null and void and cannot found contempt proceedings.

Reasoning

The Court, guided by its decision in the related appeal (Civil Appeal No. 279 of 2006) and Grain Bulk Handlers, found the orders imprecise, wide and partly incapable of implementation. An ex parte mandatory injunction cannot be issued in judicial review proceedings, and an order made without jurisdiction cannot attract criminal sanctions for its purported breach.

p. 8

Legal principles established

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  • Knowledge of a court order is sufficient for purposes of contempt proceedings; personal service may be dispensed with where there is valid substituted service or service on an authorised officer.
  • A party who knows of an order must obey it and cannot determine for itself whether the order is null or valid; it must apply to court for discharge.
  • Before a person is cited for contempt, the order alleged to have been breached must be clear, precise and unambiguous.
  • An ex parte mandatory injunction cannot be issued in judicial review proceedings; an order issued without jurisdiction is null and void and cannot attract contempt sanctions.
  • An appellate court will not interfere with the exercise of discretion by a trial judge unless the judge misdirected himself or was clearly wrong, resulting in a miscarriage of justice.

Court orders

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  1. 1.Appeal allowed
  2. 2.The ruling delivered on 24th November 2006 by the High Court set aside
  3. 3.Order substituted dismissing the Notice of Motion dated 26th September 2006
  4. 4.Costs of the appeal 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 Eldoret
Misc. Civil Application No. 649 of 2006
Jurisdiction invoked
Section 5 of the Judicature Act (appeal from High Court contempt ruling)
Consolidated with
Civil Appeal No. 279 of 2006

Relief refused

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Respondents' application for committal of the appellant to civil jail and attachment of her assets for contempt

The Court was not satisfied that there was deliberate breach or wilful disobedience of the ex parte orders, which were imprecise and partly granted without jurisdiction

p. 8

Costs

The costs of this appeal are awarded to the appellant.

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.

All in all, we are not satisfied that there was deliberate breach or willful disobedience of the ex parte orders by the appellant. Consequently, we allow this appeal and set aside the ruling delivered on 24th November, 2006. We substitute therefor an order dismissing the Notice of Motion dated 26th September, 2006.
p. 8Final orders - appeal allowed, contempt ruling set aside
It is well settled today that knowledge of an order is sufficient for purposes of contempt proceedings.
p. 6Knowledge as sufficient basis for contempt
An exparte mandatory injunction cannot be issued in judicial review proceedings. An order issued without jurisdiction is null and void and any purported breach thereof cannot attract criminal sanctions.
p. 8Jurisdiction to grant ex parte mandatory orders in judicial review
It is trite law that before a person is cited for contempt, the Court must be satisfied that the impugned order is clear and unambiguous.
p. 8Clarity requirement before contempt findings
It is the plain and unqualified obligation of every person against or in respect of whom an order is made by a court of competent jurisdiction, to obey it unless and until that order is discharged.
p. 7Obligation to obey court orders (as cited in Econet Wireless)
The costs of this appeal are awarded to the appellant.
p. 8Costs order

Issues in the judgment

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minor

The judgment contains an apparent typographical inconsistency in the notification letter's date ('since Monday 18th June 2006') in a letter dated 22nd September 2006 concerning events of September 2006.

minor

The judgment cites 'Order 45 rule 7 of the Supreme Court Rules' as governing penal notices while elsewhere attributing Order 52 rule 3 of the Supreme Court Practice as the procedural basis of the contempt application, without reconciling the two.

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Rose Detho v Ratilal Automobiles & others [2018] KECA 50 (KLR)", Case Analysis (2018). Civil Appeal No. 311 of 2006. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/50/eng@2018-12-20

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