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Court of AppealDismissedCivil Appeal No. 252 of 2009

Kenya Hotels Limited v Oriental Commercial Bank Limited

Court of Appeal
25 January 2019
1,767 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 refused to let Kenya Hotels add a new appeal ground never raised in the High Court, confirming appeals cannot smuggle in fresh arguments.

What this practically means

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Executive summary

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This is a ruling of a full bench of the Court of Appeal at Nairobi on a reference against the decision of a single judge, K. M'Inoti, J.A., who had disallowed Kenya Hotels Limited's application to amend its memorandum of appeal in Civil Appeal No. 252 of 2009. The applicant sought to add a ground contending that the charge transaction underlying the dispute was void for want of Land Control Board consent, the suit property having allegedly been declared agricultural land under the Land Control Act. The underlying High Court suit, decided by Kimaru, J. on 28th August 2009, had found the applicant indebted to Oriental Commercial Bank Limited under an equitable mortgage and permitted the bank to sell the suit properties. The intended ground had never been pleaded, argued or adjudicated before the High Court. The full bench restated the settled principles governing interference with a single judge's discretionary decision: interference lies only where the single judge considered irrelevant factors, ignored relevant ones, applied a wrong principle, or reached a plainly wrong decision, and the onus rests on the party seeking the reference. The Court held that the question whether the property was agricultural or had been converted to commercial use was a contested factual matter never assessed by the trial court, and that the applicant was in effect seeking to introduce new evidence on appeal. The single judge's discretion was found to have been exercised judiciously. The reference was dismissed with costs to the respondent.

Questions the Court framed

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

  1. 1.Whether the full bench should interfere with the single judge's (K. M'Inoti, J.A.) decision disallowing the amendment of the memorandum of appeal
  2. 2.Whether the single judge erred or exercised his discretion injudiciously in refusing to allow a new ground of appeal based on alleged illegality for want of Land Control Board consent

Key legal issues

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01

Test for interference by a full bench with a single judge's discretionary decision under rule 44

Holding

The full bench may interfere only where the single judge considered irrelevant factors, failed to consider relevant factors, applied a wrong principle, or the decision is plainly wrong; the onus is on the party seeking the reference.

Reasoning

The Court adopted the principles in Mwangi v Kenya Airways Ltd, holding that a single judge exercises the whole court's powers and that interference is confined to the narrow grounds applicable to appellate interference with discretionary decisions. The appellant bore the burden of establishing error and failed to discharge it.

p. 2
02

Whether a new ground of appeal based on illegality (lack of Land Control Board consent) could be introduced on appeal

Holding

No - where the issue was never pleaded, argued or adjudicated at trial and its resolution depends on contested facts, allowing the amendment would amount to adducing new evidence on appeal.

Reasoning

The intended ground concerned whether the suit property was agricultural land requiring Land Control Board consent. One party asserted it was agricultural land, the other that it had been converted to commercial use. That factual contest was never subjected to assessment by the trial court, so the new ground could not be entertained on appeal.

p. 3

Legal principles established

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  • A full bench will not interfere with a single judge's discretionary decision unless the single judge erred or exercised discretion injudiciously, and the onus lies on the party seeking the reference.
  • A reference is not an appeal but a reconsideration of the manner in which a single judge exercised discretion on behalf of the Court.
  • A full court may interfere with a single judge's discretion only where irrelevant factors were considered, relevant factors ignored, a wrong principle applied, or the decision is plainly wrong.

Court orders

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  1. 1.The reference from the single judge's decision is dismissed
  2. 2.Costs of the reference awarded to the respondent

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 Nairobi
HCCC No. 195 of 2005 (OS)
Jurisdiction invoked
Rule 44 of the Court of Appeal Rules - reference from a decision of a single judge of appeal

Relief refused

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Setting aside the single judge's decision disallowing the amendment of the memorandum of appeal

The single judge exercised his discretion judiciously; the intended ground was never pleaded, argued or adjudicated below and amounts to an attempt to adduce new evidence

p. 3

Costs

The reference was dismissed with costs to the 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.

We must reiterate that a reference is not an appeal, though it has the nature of one. It is no more than a re-consideration of the manner in which a single judge exercised his or her discretion on behalf of the Court.
p. 3Nature of a reference from a single judge's decision
the full bench will not interfere with the exercise of a discretion of a single judge of this Court unless it is clear that the single judge erred or exercised his discretion injudiciously. The onus is on the party who asked for the reference to establish this.
p. 3Threshold for interference with a single judge's discretion
In view of the contestation by one party that the property is agricultural land and by the other that it had been converted to commercial use, it remains a factual matter of evidence which was never subjected to assessment by the trial court. As suspected by the respondent the applicant was in effect seeking to adduce new evidence.
p. 3New ground of appeal raising unpleaded factual issue
All in all, we find no basis for disturbing the ruling by K. M'Inoti, J.A. Consequently, we dismiss this reference with costs to the respondent.
p. 3Final orders - dismissal of the reference

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (7)

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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, "Kenya Hotels Limited v Oriental Commercial Bank Limited", Case Analysis (2019). Civil Appeal No. 252 of 2009. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/1037/eng@2019-01-25

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