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Court of AppealAllowedCivil Application No. NAI. 282/2015 (UR 240/2015)· [2018] KECA 373 (KLR)

Velos Enterprises Limited v Paragon Electronics Limited [2018] KECA 373 (KLR)

Court of Appeal of Kenya
8 June 2018
1,904 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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If you never got notice that a court ruling was delivered, Kenyan courts will still hear you — even if the usual deadline has passed.

What this practically means

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Executive summary

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This is a single-Judge ruling of the Court of Appeal (Kantai, J.A.) on a Notice of Motion dated 31st July 2017 by Velos Enterprises Limited seeking leave to file a reference out of time under rule 55 of the Court of Appeal Rules. The background is that Velos' application for extension of time to lodge a notice of appeal against a High Court judgment of 23rd October 2015 was heard by a single Judge, who deferred the ruling to be delivered on notice. The ruling, dismissing that application, was delivered on 28th April 2017 without any notice of the delivery date having been served on Velos' advocates. Velos only learnt of the ruling when garnishee proceedings were served on its bankers after 25th July 2017, and filed the present motion less than a week later. The respondent, Paragon Electronics Limited, opposed, arguing that a reference under rule 55 must be sought within seven days and that the motion was filed with inordinate delay. Kantai, J.A. held that where a ruling is deferred to be delivered on notice, the burden shifts to the court to ensure proper notice is served on all parties, as natural justice and the right to be heard require. Finding as a fact that no notice was served on the applicant, the court held that the rule 55 right of reference is exercisable as of right and without reasons, followed Oshwal Academy (Nairobi) & Another v Induvishwanath, and found no inordinate delay. The motion was allowed with leave granted for a reference before the full bench; the file was referred to the Registrar, and costs of the motion were placed in the reference.

Key legal issues

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01

Entitlement to leave to file a reference out of time under rule 55 where the applicant had no notice of delivery of the ruling

Holding

Leave is granted because the applicant was denied procedural fairness; the single Judge's ruling was delivered in its absence without notice, so the applicant only learnt of it when garnishee orders were served on its bankers.

Reasoning

Rule 55 donates a right to a dissatisfied party to refer a single Judge's decision to the full bench. Since the ruling had been deferred to be delivered on notice, the court bore the burden of serving proper notice on all parties. The record showed no such notice was issued or served on the applicant's advocates. Natural justice and the right to be heard required more; the applicant learned of the ruling only through garnishee proceedings on 25 July 2017 and filed the motion less than a week later, so there was no delay.

p. 3
02

Nature of the right of reference under rule 55

Holding

The right of reference to the full bench is exercisable as of right and requires no reasons; the applicant's failure to apply within 7 days was excused because it lacked notice of the ruling.

Reasoning

The court construed rule 55, noting it permits application informally to the Judge when the decision is given or by writing to the Registrar within seven days, without requiring reasons. Because the applicant was never served with notice of the deferred ruling, the seven-day period could not properly run against it. The court endorsed Waki, J.A.'s approach in Oshwal Academy on the failure to notify parties of a judgment.

p. 2

Legal principles established

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  • Where a court defers a ruling or judgment to be delivered on notice, the burden shifts to the court to ensure that proper notice is served on all parties.
  • The right of reference to the full bench under rule 55 is a right exercisable as of right, without reasons, and need not be forfeited because a party was not notified of the single Judge's decision.
  • Where a party had no notice of delivery of a ruling, the period for seeking a reference runs from actual knowledge, and no inordinate delay arises where the application is made promptly upon learning of the ruling.

Court orders

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  1. 1.Leave granted to the applicant to have a reference as contemplated by rule 55 of the Court of Appeal Rules
  2. 2.No need to file any other application; the file will be placed before the court for a reference
  3. 3.The file and the ruling to be placed before the Registrar of the Court for his necessary action
  4. 4.Costs of the motion to be in the reference

Authorities

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Legislation

  • Appellate Jurisdiction ActSections 3 and 5
  • Court of Appeal RulesRule 42
  • Court of Appeal RulesRule 55

Cases cited (1)

  • Oshwal Academy (Nairobi) & Another v Induvishwanath
    [2017] eKLR
On appeal from
High Court of Kenya at Nairobi
Jurisdiction invoked
Sections 3 and 5 of the Appellate Jurisdiction Act and Rules 42 and 55 of the Court of Appeal Rules

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, "Velos Enterprises Limited v Paragon Electronics Limited [2018] KECA 373 (KLR)", Case Analysis (2018). Civil Application No. NAI. 282/2015 (UR 240/2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/373/eng@2018-06-08

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