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Court of AppealDismissedCivil Application No. E 301 of 2020· [2021] KECA 521 (KLR)

Faulu Micro Finance Bank Limited v Joseph Kipngeno Kirui & another [2021] KECA 521 (KLR)

Court of Appeal
4 June 2021
1,057 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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The Court of Appeal dismissed Faulu Bank's request for more time to appeal because it couldn't prove why its filing was three months late.

What this practically means

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Executive summary

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Faulu Micro Finance Bank Limited moved the Court of Appeal (Murgor, JA, in chambers) by Notice of Motion dated 18 September 2020 seeking stay of proceedings in Chief Magistrate's Civil Suit No. 3074 of 2017 and extension of time to file a Notice of Appeal, Memorandum and Record of Appeal out of time. The intended appeal was against a High Court judgment (Kasango, J, delivered 3 June 2020) in which the High Court had granted the respondents' application to set aside the trial court's refusal of a temporary injunction restraining Faulu from selling Nairobi/Block 111/666. Faulu attributed its roughly three-month delay to Covid-19 restructuring and lengthy internal board approvals. The 1st respondent opposed the application as frivolous and an abuse of process. The Judge held the stay-of-proceedings prayer was not properly before her in chambers and declined to determine it. On extension of time, applying the Leo Sila Mutiso principles, she found the delay unexplained: Faulu produced no documentation showing when its internal approval process commenced or concluded, only two emails about staff working from home. She was also not satisfied the intended appeal, which attacked a discretionary injunction ruling, had a likelihood of success, and prejudice was not apparent from the pleadings. The motion was dismissed with costs to the respondents on 4 June 2021.

Key legal issues

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01

Extension of time under Rule 4

Holding

The application failed because the applicant did not satisfactorily explain the delay of about three months, producing no documentation of its internal approval timeline, and the intended appeal against an exercise of discretion showed no likelihood of success.

Reasoning

The court reaffirmed the Leo Sila Mutiso principles: length of delay, reason for delay, arguability, and prejudice. The applicant attributed the delay to Covid-19 restructuring and board approval processes but produced only two emails about staff working from home, no evidence of when the approval process began or ended. The intended appeal attacked a discretionary injunction decision, undermining arguability, and prejudice was not apparent.

p. 2
02

Competence of the stay-of-proceedings prayer before a single Judge

Holding

The stay of proceedings application was not properly before the single Judge sitting in chambers and could not be determined.

Reasoning

The Judge noted that a stay of proceedings application was not within what could be determined in an in-chambers single Judge application of this nature, and confined the determination to the extension of time prayer.

p. 2

Legal principles established

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  • Under Rule 4 of the Court of Appeal Rules the Court has an unfettered discretion to extend time, exercised judiciously and guided by the length of the delay, the reason for the delay, the chances of success of the appeal, and prejudice to the respondent.

Court orders

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  1. 1.The Notice of Motion dated 18th September, 2020 be and is hereby dismissed with costs to the respondents

Authorities

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Legislation

  • Constitution of Kenya, 2010right to appeal (invoked by applicant)
  • Court of Appeal RulesRule 4
  • Court of Appeal RulesRule 75

Cases cited (1)

  • Leo Sila Mutiso vs Rose Hellen Wangari Mwangi
    Civil Application No. Nai 251 of 1997
On appeal from
High Court of Kenya, Commercial & Tax Division, Nairobi
Civil Appeal No. 12 of 2017
Jurisdiction invoked
Rule 4 of the Court of Appeal Rules (extension of time)

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, "Faulu Micro Finance Bank Limited v Joseph Kipngeno Kirui & another [2021] KECA 521 (KLR)", Case Analysis (2021). Civil Application No. E 301 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/521/eng@2021-06-04

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