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Court of AppealStruck OutCivil Appeal No. 322 of 2013

Orchid Pharmacy Limited v Southern Credit Banking Corporation Limited & 3 others [2018] KECA 163 (KLR)

Court of Appeal
9 November 2018
3,057 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~12 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal struck out an entire appeal because the notice of appeal was served over four years late, without seeking an extension of time.

What this practically means

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Executive summary

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The appellant, registered proprietor of two Westlands properties, had sued the respondents alleging a fraudulent charge over one parcel and a sham auction. The High Court (Havelock J) struck out the appellant's suit against the 3rd respondent, struck out its defence to the 3rd respondent's counterclaim, ordered it to give possession, and dismissed its notice to produce. The appellant appealed. Before the hearing, the 3rd respondent moved to strike out both the Notice of Appeal and the Record of Appeal on the ground that they were served outside the prescribed time - by 1,616 days and 1,550 days respectively. The court confirmed the striking-out application was filed within the 30-day window in the proviso to Rule 84. It then held Rule 77(1), requiring service of the Notice of Appeal within seven days, to be mandatory. There had been no application to enlarge time for service, no affidavit from counsel explaining the delay, and only an unparticularised plea of mistake of counsel. Relying on Salat, Costellow, Tana & Athi Rivers Development Authority, Kantaria and Ratman, the court held that the overriding objective is not a panacea and discretion cannot be exercised without a proper foundation. The Notice of Appeal and Record of Appeal were struck out, and with them the appeal itself, with costs to the 3rd respondent. The court declined to address the merits, noting the grounds remained live before the trial court in the still-pending suit against the other respondents.

Questions the Court framed

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

  1. 1.Whether the application to strike out the Notice of Appeal and Record of Appeal was filed within the 30-day period prescribed by Rule 84
  2. 2.Whether service of the Notice of Appeal and Record of Appeal outside the prescribed time, without an application for enlargement of time and without satisfactory explanation, justified striking out the appeal
  3. 3.Whether mistake of counsel and the overriding objective warranted excusing the procedural default

Key legal issues

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01

Timeliness of the application to strike out under Rule 84

Holding

The motion to strike out was filed within 30 days of service of the Notice and Record of Appeal, satisfying the proviso to Rule 84.

Reasoning

The Notice of Appeal was served on 14th March 2018 and the Record of Appeal on 9th March 2018. The motion was filed on 9th April 2018, within 30 days of the last service, so the threshold requirement of the proviso was met and the application was properly before the court.

p. 3
02

Consequences of late service of the Notice and Record of Appeal

Holding

Service outside the seven-day rule without an enlargement-of-time application or satisfactory explanation means there is no valid Notice of Appeal and the appeal must be struck out.

Reasoning

The court held Rule 77(1) mandatory. The appellant offered only counsel's mistake, filed no affidavit from counsel explaining the delay, and never applied to enlarge time for service. Following Ratman v CumaraSamy and the Kantaria line, discretion cannot be exercised without material on which to do so; the default therefore defeated the appeal.

p. 3
03

Whether mistake of counsel and the overriding objective excuse the default

Holding

Mistake of counsel is not automatically excused; courts will excuse it only where it affords just, expeditious disposal and counsel explains the delay, which was not done here.

Reasoning

Citing Tana & Athi Rivers Development Authority, the court acknowledged clients should not suffer for counsel's mistakes but stressed counsel's corresponding duty to the court and the other side. No affidavit from counsel was filed. The overriding objective requires a proper foundation, absent here, so substantive justice could not override the mandatory rules.

p. 4

Legal principles established

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  • Rule 77(1) of the Court of Appeal Rules is mandatory; service of the Notice of Appeal within seven days is not optional, and absent an enlargement of time there is no valid Notice of Appeal to confer jurisdiction on the Court.
  • Without a valid Notice of Appeal served within the prescribed time, the Court of Appeal lacks jurisdiction to entertain the appeal.
  • The overriding objective is not a panacea; a party invoking it must lay a proper and explicable foundation before the Court can exercise the discretion in its favour.
  • Where an appeal is struck out, no appeal remains pending and the court will not delve into the merits of the grounds in the memorandum of appeal.

Court orders

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  1. 1.The Notice of Motion dated 5th April 2018 is allowed
  2. 2.The Notice of Appeal dated 24th September 2013 is struck out
  3. 3.The Record of Appeal filed on 22nd November 2013 is struck out
  4. 4.The appeal is struck out with costs to the 3rd respondent

The bench

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

Mohamed Abdulahi Warsame
M. WarsameJA
Currently serving
majority
majority
majority
On appeal from
High Court at Nairobi
High Court Civil Case No. 389 of 2007
Jurisdiction invoked
There was no valid Notice of Appeal on record; the court found it lacked the requisite jurisdiction to entertain the appeal

Relief refused

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Hearing of the appeal on its merits despite late service of the Notice and Record of Appeal

No satisfactory explanation for the delay, no affidavit from counsel, and no application to enlarge time for service

p. 4

Costs

This appeal be and is hereby struck out with costs to the 3rd respondent.

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.

Rule 77(1) of the Rules of this Court is couched in mandatory terms and compliance with the same is not optional.
p. 3Mandatory nature of service requirements under Rule 77(1)
There being no application to enlarge time within which to serve the Notice and Record of Appeal, it is clear that there is no valid Notice of Appeal on record to clothe us with the requisite jurisdiction to entertain the appeal herein.
p. 3Jurisdiction dependent on valid Notice of Appeal
The upshot is that we allow the Notice of Motion dated 5th April 2018. We hereby strike out the Notice of Appeal dated 24th September 2013 and also strike out the Record of Appeal filed on 22nd November 2013.
p. 4Final orders striking out the Notice and Record of Appeal
This appeal be and is hereby struck out with costs to the 3rd respondent.
p. 4Disposition and costs

Issues in the judgment

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minor

The judgment states leave to appeal out of time was granted on 23rd September 2013 but the Notice of Appeal is dated 24th September 2013 and elsewhere the judgment says it was filed on 25th September 2013, an internal inconsistency in dates.

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, "Orchid Pharmacy Limited v Southern Credit Banking Corporation Limited & 3 others [2018] KECA 163 (KLR)", Case Analysis (2018). Civil Appeal No. 322 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/163/eng@2018-11-09

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