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Court of AppealAllowedNotice of Motion dated 25th February 2023· [2023] KECA 529 (KLR)

Hindafro Enterprises Limited v Barclays Bank of Kenya Limited (Civil Application E075 of 2023) [2023] KECA 529 (KLR)

Court of Appeal
12 May 2023
1,393 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 allowed Hindafro Enterprises more time to serve its notice of appeal, ruling a three-month delay was acceptable because it was properly explained.

What this practically means

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Executive summary

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This is a single-judge ruling of the Court of Appeal at Nairobi (Laibuta, JA) on a Notice of Motion dated 25th February 2023 by Hindafro Enterprises Limited seeking extension of time to serve its notice of appeal. The notice of appeal, dated 14th December 2022 and lodged on 16th December 2022 against a High Court judgment (Wakianga, J.) delivered on 5th December 2022 in a banking dispute involving alleged fraud and agency, had not been served within the prescribed period because the superior court file was reportedly untraceable until January 2023. Applying the settled Rule 4 framework from Fakir Mohammed v Joseph Mugambi, the Court considered arguability, length and explanation of delay, and prejudice to the respondent. It found that all but one of the six grounds of the intended appeal raised arguable points of law; that a three-month delay was not inordinate; and that the applicant had given a plausible and satisfactory explanation for the delay. The Court allowed the application, ordering the applicant to serve the notice of appeal within seven days, with the costs of the application to abide the outcome of the intended appeal. The ruling reiterates that arguability is only the first step, and that there is no fixed minimum or maximum period of delay under Rule 4 — any delay must be satisfactorily explained.

Key legal issues

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01

Scope of the Court's discretion under Rule 4

Holding

The discretion under Rule 4 is unfettered and the relevant factors include period of delay, reason for delay, chances of the appeal succeeding, prejudice to the respondent, effect on public administration, compliance with time limits, resources of the parties and public importance.

Reasoning

The Court adopted the celebrated formulation in Fakir Mohammed v Joseph Mugambi, holding that since the amendment removing the stricture of 'sufficient reason' in 1985, there is no limit to the number of relevant factors the Court may consider in exercising its Rule 4 discretion.

p. 2
02

Whether three months' delay in serving the notice of appeal was inordinate

Holding

A period of three months was held not to be inordinate, particularly where the superior court file was untraceable and the applicant gave a plausible and satisfactory explanation.

Reasoning

The Court stressed that while notices of appeal should be served at the earliest opportunity, the law prescribes no minimum or maximum period of delay; what matters is a valid and clear explanation upon which discretion can be favourably exercised.

p. 3
03

Arguability of the intended appeal

Holding

All but one of the six grounds in the memorandum of appeal raised arguable points of law deserving of the Court's consideration, satisfying the first requirement for extension of time.

Reasoning

The intended appeal was a second appeal from the High Court judgment of Wakianga, J.; the Court found that with the exception of the last ground, the grounds raised arguable points of law, but treated arguability as merely the first step in the Rule 4 analysis.

p. 2

Legal principles established

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  • An arguable appeal is only the first step; the applicant must also satisfy the Court on delay, explanation for delay and absence of prejudice before extension of time is granted under Rule 4.
  • There is no fixed minimum or maximum period of delay under Rule 4; any delay must be satisfactorily explained.

Court orders

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  1. 1.The application dated 25th February 2023 is allowed
  2. 2.The applicant to serve the notice of appeal upon the respondent within seven (7) days of the order
  3. 3.Costs of the application to abide the outcome of the intended appeal
On appeal from
High Court
null
Jurisdiction invoked
Rule 4 of the Court of Appeal Rules, read with rule 3(e) of the Court of Appeal Rules, 2022 (computation of time during Court recess)

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, "Hindafro Enterprises Limited v Barclays Bank of Kenya Limited (Civil Application E075 of 2023) [2023] KECA 529 (KLR)", Case Analysis (2023). Notice of Motion dated 25th February 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2023/529/eng@2023-05-12

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