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Court of AppealDismissedCivil Application E215 of 2020· [2022] KECA 1290 (KLR)

Invesco Assurance Company Limited v Mulwa & 59 others & another

Court of Appeal
18 November 2022
1,721 words in judgment
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The bottom line

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Kenya's Court of Appeal refused to excuse an insurer's unexplained delay in serving its appeal notice, so the accident victims' insolvency case against it proceeds.

What this practically means

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Executive summary

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Invesco Assurance Company Limited applied under rule 4 of the Court of Appeal Rules, 2010 for extension of time to serve a notice of appeal against a High Court ruling (M. Odero, J, 29th May 2020) in an insolvency petition brought by 60 road traffic accident victims holding unpaid decrees against the applicant totalling Kshs 53,284,914.25. The notice of appeal was filed and paid for on 11th June 2020 amid email delivery problems; service by email on the respondents' advocate bounced on 20th June 2020, but physical service was effected only on 9th July 2020, 20 days after time had lapsed. Okwengu, JA applied the Supreme Court's Salat principles on extension of time. The court accepted that technological challenges explained the delay in filing, but found no explanation for the 19-day delay in effecting physical service after the email bounced. It also held that rule 77 requires service of copies of the notice as filed, rejecting the submission that service could precede filing. The applicant filed no draft memorandum of appeal or grounds, failing to demonstrate good faith or an appeal capable of succeeding. Weighing prejudice, the court found the accident-victim respondents would be prejudiced by delay while the applicant would suffer none, since the substantive petition remains pending in the High Court with appeal rights preserved. The motion was dismissed with costs.

Key legal issues

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01

Discretion to extend time under rule 4 of the Court of Appeal Rules

Holding

The discretion must be exercised judicially, applying the Salat principles; an applicant who fails to explain the delay in service and to demonstrate an arguable appeal does not deserve the indulgence

Reasoning

The court applied the Supreme Court's Salat principles. Although technological difficulties explained the delay in filing, no reason was given for the 19-day delay in physical service after the email bounced. The applicant also filed no draft memorandum of appeal or grounds, failing to demonstrate good faith or an appeal capable of succeeding.

p. 2
02

Service of notice of appeal under rule 77

Holding

Rule 77 requires service of copies of the notice of appeal as filed, before or within 7 days after lodging; the court rejected the submission that service could occur before filing

Reasoning

The court held that the reference to 'copies' in rule 77 can only mean copies of the original notice which has been filed, hence the phrase 'before or within 7 days after lodging notice of appeal'. The applicant's unexplained 19-day delay in effecting physical service after the bounced email was fatal.

p. 3
03

Prejudice and public interest

Holding

The respondents, accident victims with unpaid decrees, would be prejudiced by delay, while the applicant would suffer none since the substantive petition remains pending in the High Court

Reasoning

The court weighed prejudice: the 1st respondents are road traffic accident victims with decrees of over Kshs 53 million unpaid, and the applicant's liquidity is a matter of general public importance. Dismissal of the motion merely paves way for the substantive hearing of the pending petition, with appeal rights preserved against any ensuing judgment.

Legal principles established

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  • Extension of time is an equitable remedy available only to a deserving party at the court's discretion, and the applicant bears the burden of explaining the delay to the court's satisfaction

Court orders

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  1. 1.The applicant's notice of motion dated 17th July 2020 is dismissed with costs

Authorities

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Legislation

  • Court of Appeal Rules, 2010Rule 4
  • Court of Appeal Rules, 2010Rule 77
  • Chapter 405 of the Laws of Kenya (Insurance Act)

Cases cited (3)

  • Leo Sila Mutiso vs Hellen Wangari Mwangi
    [1999] 2 EA 231

    Discretion to extend time must be exercised judicially and not whimsically

  • Nicholas Kiptoo Arap Korir Salat v Independent Electoral and Boundaries Commission & 7 others
    [2014] eKLR

    Principles governing exercise of discretion to extend time

  • Baber Alibhai Mawji vs Sultan Hasham Lalji & 2 Others
    Civil Application No NAI 236 of 1992

    Court cannot condone an error where simply looking at the Rules would have guided counsel

On appeal from
High Court at Nairobi
High Court Insolvency Petition No. E008 of 2019
Jurisdiction invoked
Rule 4 of the Court of Appeal Rules, 2010

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, "Invesco Assurance Company Limited v Mulwa & 59 others & another", Case Analysis (2022). Civil Application E215 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2022/1290/eng@2022-11-18

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