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Case Brief · caselaw.co.ke
Court of AppealAllowedCivil Appeal (application for leave to appeal) arising from High Court Civil Case No. 569 of 2009; Civil Application No. 479 of 2014· [2021] KECA 339 (KLR)

Kimani Gachuhi & 1 other v Evangelical Mission For Africa & 1 other

Court of Appeal of Kenya
17 December 2021
2,916 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that High Court rulings setting aside arbitral awards can only be appealed in the rarest, clearest cases.

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 (Nambuye, Karanja and Okwengu JJA) delivered on 17th December 2021 on an application for leave to appeal. The underlying dispute concerns a sale and purchase agreement over part of L.R. No. 2951/84 between the appellants and the respondents, which was referred to arbitration by consent. The arbitrators published a final award on 19th August 2014. The respondents applied to the High Court under Sections 35 and 39 of the Arbitration Act to set aside the award, while the appellants sought to strike out that application. By a ruling delivered on 19th May 2015, Ogola J set aside the award in toto under Section 35(2)(b)(ii) for being in conflict with the public policy of Kenya and against the Constitution, and referred the matter to arbitration a second time. The appellants filed an appeal raising twenty-two grounds, principally that the learned Judge misapplied Articles 165(6) and 10 of the Constitution as additional grounds for setting aside the award beyond those in Section 35. Because leave is required under the Supreme Court's decisions in Nyutu Agrovet v Airtel Networks and Synergy Industrial Credit v Cape Holdings, the court confined itself to the leave question. Applying the narrow Nyutu threshold, it found that the High Court appeared to have disregarded the circumscribed statutory grounds and assumed its own parameters. It granted leave for the substantive appeal to proceed and ordered costs of the application to be in the appeal. The decision below was not disturbed at this stage.

Key legal issues

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01

Whether the High Court's reliance on constitutional provisions (Articles 10 and 165(6)) in setting aside an arbitral award falls outside the grounds in Section 35 of the Arbitration Act

Holding

The court was persuaded that the High Court appeared to disregard the circumscribed grounds in Section 35 and assumed its own standards, raising an arguable point that falls within the narrow Nyutu window; leave to appeal was therefore granted.

Reasoning

The court, guided by Nyutu and Synergy, held that appeals from Section 35 determinations lie only where the High Court went beyond the statutory grounds. The learned Judge's invocation of Articles 165(6) and 10 of the Constitution as additional standards for setting aside the award suggested precisely such an excursion. The court eschewed making determinative findings, leaving that to the bench hearing the substantive appeal.

p. 6
02

Whether leave to appeal should be granted in this application

Holding

Leave was granted; the appeal passes through the narrow window opened by the Supreme Court in Nyutu.

Reasoning

Applying the Nyutu and Synergy parameters without delving into the merits of the award, the court found the appellants' contention - that the High Court used extra-statutory constitutional grounds to set aside the award - sufficient to bring the appeal within the narrow and circumscribed jurisdiction, warranting leave for the substantive appeal to proceed.

p. 6

Legal principles established

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  • Not every High Court decision under Section 35 of the Arbitration Act is appealable; an intended appeal must be anchored within the four corners of Section 35, contending that the High Court went beyond the statutory grounds for interfering with an arbitral award.
  • The only instance an appeal may lie from the High Court to the Court of Appeal on a Section 35 determination is where the High Court stepped outside the grounds in Section 35 and made a decision so grave and manifestly wrong that it closed the door of justice.
  • Alleged breaches of the Constitution cannot be introduced into an application to set aside an arbitral award via Section 35 of the Arbitration Act.

Court orders

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  1. 1.Leave granted for the substantive appeal to proceed to hearing before the Court of Appeal
  2. 2.The appeal to be heard and determined by the Court of Appeal
  3. 3.Costs of the application to be in the appeal
On appeal from
High Court of Kenya at Nairobi
Civil Application No. 479 of 2014 (in High Court Civil Case No. 569 of 2009)
Jurisdiction invoked
Leave to appeal from a High Court determination under Section 35 of the Arbitration Act, per the parameters set by the Supreme Court in Nyutu Agrovet v Airtel Networks Limited and Synergy Industrial Credit Limited v Cape Holdings Limited

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, "Kimani Gachuhi & 1 other v Evangelical Mission For Africa & 1 other", Case Analysis (2021). Civil Appeal (application for leave to appeal) arising from High Court Civil Case No. 569 of 2009; Civil Application No. 479 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/339/eng@2021-12-17

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