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Court of AppealDismissedCivil Application No. 389 of 2018 (UR 316 of 2018)· [2020] KECA 710 (KLR)

Thika Coffee Mills v Rwama Farmers Co-operative Society Limited [2020] KECA 710 (KLR)

Court of Appeal
24 April 2020
4,377 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal refused Thika Coffee Mills permission to take its arbitration dispute to the Supreme Court, confirming you cannot raise new issues at the highest court.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (Okwengu, Musinga & Sichale, JJ.A) on a notice of motion dated 24th December 2018 by Thika Coffee Mills, the appellant in Civil Appeal No. 251 of 2013. The applicant sought a stay of execution of the Court of Appeal judgment of 12th October 2018 and of the High Court judgment of 28th September 2012, leave to appeal to the Supreme Court, and certification that the intended appeal raises a matter of general public importance under Article 163(4)(b) of the Constitution. The underlying dispute concerned an arbitral award of Ksh5,422,160.25 in favour of Rwama Farmers Co-operative Society Limited, which the High Court (Mabeya, J.) adopted as a judgment of the court; the Court of Appeal's majority dismissed the applicant's appeal against that decision. Applying the Supreme Court's principles in Hermanus Phillipus Steyn v Giovanni Gnecchi-Ruscone, the Court held that several of the issues the applicant sought to raise (jurisdiction of the Co-operatives Tribunal, legality of pre-1997 co-operative contracts, retrial principles) were never raised or determined in the Court of Appeal and were therefore foreclosed. The remaining issues collapsed into the question of the Court of Appeal's jurisdiction under Section 35 of the Arbitration Act, which the Supreme Court had already exhaustively settled in the Nyutu Agrovet decision. The application was dismissed, certification refused, and costs awarded to the respondent.

Key legal issues

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01

Certification of a matter of general public importance under Article 163(4)(b)

Holding

The applicant failed the Hermanus Phillipus Steyn test: it did not demonstrate a substantial point of law with a significant bearing on the public interest transcending the circumstances of the case.

Reasoning

Applying the Supreme Court's principles in Hermanus Phillipus Steyn v Giovanni Gnecchi-Ruscone, the Court tested whether the issues intended for the Supreme Court had arisen and been determined in the Court of Appeal. Several issues (jurisdiction of the Co-operatives Tribunal, legality of pre-1997 co-operative contracts, principles for retrial) were never raised below. The remaining issues on pleadings and Sections 35 and 37 of the Arbitration Act collapsed into a question of jurisdiction already settled by the Supreme Court in Nyutu Agrovet. Certification was therefore refused.

p. 5
02

Scope of issues permissible on an intended appeal under Article 163(4)(b)

Holding

Only issues raised before and determined by the Court of Appeal may be pursued in an intended appeal under Article 163(4)(b).

Reasoning

Because the intended appeal is one under Article 163(4)(b), the applicant is confined to issues that were the subject of judicial determination in the Court of Appeal. The Court compared the grounds in the motion against its own 12th October 2018 judgment and found that issues (b) to (e) and (k) were never raised or addressed in that judgment, and were therefore foreclosed before the Supreme Court.

p. 4
03

Jurisdiction of the Court of Appeal under Section 35 of the Arbitration Act

Holding

The question is settled by the Supreme Court in Nyutu Agrovet: appeals lie only in exceptional, narrow circumstances focused on process infractions.

Reasoning

The Court noted that the jurisdictional question in the intended appeal was exactly the same as that resolved in Nyutu Agrovet, where the Supreme Court held that although there is no express bar to appeals under Section 35, the Court of Appeal has only a residual, circumscribed jurisdiction exercisable sparingly in the clearest of cases. Since the applicant's appeal was heard on merit and found to lack substance, and appeals under Section 35 concern process rather than merit, the issue was not novel and did not merit Supreme Court determination.

p. 5

Legal principles established

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  • On an application for certification under Article 163(4)(b), an intending appellant may only raise issues that were the subject of determination in the Court of Appeal; issues not raised or addressed below are not open for consideration by the Supreme Court.
  • Issues framed for an intended Supreme Court appeal that were not raised before or addressed by the Court of Appeal cannot qualify for certification under Article 163(4)(b).
  • An appeal to the Court of Appeal from a High Court decision under Section 35 of the Arbitration Act should be focused on process infractions and not merit.
  • The question of the jurisdiction of the Court of Appeal under Section 35 of the Arbitration Act has been exhaustively settled by the Supreme Court in the Nyutu Agrovet decision and is no longer novel.

Court orders

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  1. 1.The Court declined to certify the intended appeal as involving a matter of general public importance under Article 163(4)(b) of the Constitution
  2. 2.The applicant's motion for leave to appeal to the Supreme Court was rejected
  3. 3.The respondents were awarded the costs of the motion

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 163(4)
  • Constitution of Kenya, 2010Article 163(4)(b)
  • Constitution of Kenya, 2010Article 163(4)(a)
  • Constitution of Kenya, 2010Article 50
  • Constitution of Kenya, 2010Article 48
  • Constitution of Kenya, 2010Article 50(1)
  • Constitution of Kenya, 2010Article 164(3)
  • Constitution of Kenya, 2010Article 165(3)
  • Constitution of Kenya, 2010Article 258
  • Arbitration ActSection 35
  • Arbitration ActSection 36
  • Arbitration ActSection 37
  • Arbitration ActSections 10, 35 to 39
  • Arbitration Rules, 1997Rule 7
  • Co-operative Societies Act No. 12 of 1997Section 76

Cases cited (2)

  • Hermanus Phillipus Steyn vs Giovanni Gnecchi-Ruscone
    [2013] eKLR
  • Nyutu Agrovet Limited vs Airtel Networks Kenya Limited & Anor
    [2019] eKLR
On appeal from
Court of Appeal
Civil Appeal No. 251 of 2013
Jurisdiction invoked
Article 163(4)(b) of the Constitution - application for leave to appeal and certification of a matter of general public importance

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, "Thika Coffee Mills v Rwama Farmers Co-operative Society Limited [2020] KECA 710 (KLR)", Case Analysis (2020). Civil Application No. 389 of 2018 (UR 316 of 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/710/eng@2020-04-24

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