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Court of AppealPartially AllowedCivil Appeal No. 192 of 2018· [2019] KECA 286 (KLR)

Registered Trustees Kenya Railways Staff Retirement Benefits Scheme v Chairman Rent Restriction Tribunal; Simon O Godia & 98 others (Interested Parties) [2019] KECA 286 (KLR)

Court of Appeal
25 October 2019
1,106 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~4 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that even interim court decisions must follow fair hearing rules; a judge cannot dismiss a case without hearing the parties.

What this practically means

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Executive summary

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The Registered Trustees of the Kenya Railways Staff Retirement Benefits Scheme, landlords of premises occupied by tenants, sought leave in the Environment and Land Court to apply for certiorari and prohibition against proceedings before the Rent Restriction Tribunal, contending the Tribunal lacked jurisdiction. Eboso, J., in chambers and without hearing any party, dismissed the application on his own initiative, holding that the appellant had neither exhausted the review mechanism under Section 5(1)(m) of the Rent Restriction Act nor sought an exemption under Section 9(4) of the Fair Administrative Action Act, so the application was premature. On appeal, the appellant argued that this procedure breached the rules of natural justice. The tenants, though improperly designated interested parties rather than respondents, opposed the appeal as an attack on judicial discretion. The Court of Appeal allowed the appeal. It held that determining a leave application is a judicial function requiring observance of natural justice; the Judge had framed an issue no party raised, invited no views, and upheld his own objection. Relying on Onyango Oloo v Attorney General and Pashito Holdings, the Court reiterated that a decision made in breach of natural justice is null and void ab initio and is not saved by the likelihood that the same result would have followed a hearing. The impugned ruling was set aside to that extent, the judicial review application was reinstated for hearing before any Judge other than Eboso, J., and each party was ordered to bear its own costs. The appeal did not resolve the merits of the Tribunal's jurisdiction.

Key legal issues

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01

Whether a Judge may determine an application for leave to apply for judicial review without hearing the parties

Holding

No. The determination of an application for leave to apply for judicial review is a judicial function requiring observance of the rules of natural justice; deciding it on the papers, on an objection the Judge raised himself, without inviting the parties' views, is a nullity.

Reasoning

The Judge considered the application in chambers, raised what amounted to a preliminary objection premised on non-exhaustion of internal remedies under the Rent Restriction Act and the Fair Administrative Action Act, and dismissed the application without giving any party an opportunity to be heard. Relying on Onyango Oloo v Attorney General and Pashito Holdings, the Court held that a decision reached in breach of natural justice is null and void ab initio and is not cured by the possibility that the same decision would have been reached after a hearing. The ruling was therefore set aside and the application reinstated for hearing de bene esse before another Judge.

p. 2
02

Whether a breach of natural justice is excused if the outcome would have been the same

Holding

No. It is immaterial that the same decision would have been reached had the parties been heard.

Reasoning

Counsel for the appellant relied on Onyango Oloo v Attorney General, Nakumatt Holdings Ltd v Commissioner of VAT and Pashito Holdings for the proposition that natural justice is a minimum standard of fair decision-making. The Court adopted that position, citing the holding in Onyango Oloo that denial of the right to be heard renders a decision null and void ab initio and that the breach is not cured by the correctness of the ultimate outcome.

p. 2
03

Whether the Court should defer to the discretion of the court below

Holding

The argument that the Judge was exercising judicial discretion did not assist, because the discretion was exercised in breach of natural justice, rendering the resulting decision no decision at all.

Reasoning

Counsel for the tenants contended, citing Mbogo v Shah, that no basis was laid to interfere with the Judge's discretion. The Court did not treat the matter as an appeal against the exercise of discretion: the vice identified was procedural, namely the denial of a hearing, which nullified the decision regardless of its merits. The decision was therefore set aside on that footing rather than on an appraisal of discretion.

p. 2

Legal principles established

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  • A judicial officer discharging a judicial function, even at an interlocutory or leave stage, must observe the rules of natural justice and afford the parties a hearing; a decision reached in breach of natural justice is null and void and cannot be saved by the proposition that the same result would have been reached had the parties been heard.
  • A Judge may not, on his own motion, frame an issue or objection that no party raised, canvass it and uphold it without inviting views from the parties.

Court orders

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  1. 1.The ruling and orders of the Environment and Land Court given on 20th March 2018 were set aside to the extent that they were given without affording the appellant an opportunity to be heard
  2. 2.The appellant's application dated 19th March 2018 and filed on 20th March 2018 before the Environment and Land Court was reinstated for hearing before any Judge of that court other than Eboso, J.
  3. 3.Each party shall bear their own costs

Authorities

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Legislation

  • Rent Restriction ActSection 5(1)(m)
  • Fair Administrative Action ActSection 9(4)

Cases cited (5)

  • Onyango Oloo vs. Attorney General
    [1986-1989] EA 456
  • Nakumatt Holdings Limited vs. Commissioner of Value Added Tax
    [2011] eKLR
  • Pashito Holdings Ltd & another vs. Paul Nderitu Ndungu & others
    Civil Appeal No. 138 of 1997 [1997] 1 KLR
  • Mbogo & another vs. Shah
    [1968] EA 93
  • Julia Moracha Matundura & another vs. Sarah Moraa Moracha & another
    [2016] eKLR
On appeal from
Environment & Land Court at Nairobi
Nairobi ELC Judicial Review No. 19 of 2018
Jurisdiction invoked
First appeal / appeal from the Environment and Land Court under the applicable appellate provisions of the Constitution and statute (not expressly stated in the judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Registered Trustees Kenya Railways Staff Retirement Benefits Scheme v Chairman Rent Restriction Tribunal; Simon O Godia & 98 others (Interested Parties) [2019] KECA 286 (KLR)", Case Analysis (2019). Civil Appeal No. 192 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/286/eng@2019-10-25

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