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Court of AppealDismissedCivil Appeal Nos. 158 of 2020, 159 of 2020 and 160 of 2020 (Consolidated)· [2023] KECA 900 (KLR)

Godson Sixty One School Limited v Symbion Kenya Limited

Court of Appeal
24 July 2023
7,358 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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The Court of Appeal dismissed three appeals because the appellant never got the permission Kenyan law requires before appealing arbitration-related decisions.

What this practically means

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Executive summary

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The Court of Appeal (Musinga, P, Ali-Aroni and Mativo, JJ.A) dismissed three consolidated appeals arising from rulings in Nairobi High Court Miscellaneous Civil Cause No. 131 of 2016, a dispute over a 2011 agreement under which the appellant engaged the respondent architect to design and construct a high-end school in Karen. The dispute was arbitrated by a sole arbitrator, Mr Paul Ngotho, who dismissed the appellant's challenges to his impartiality and delivered a final award on 25th February 2016. The appellant then pursued a series of High Court applications: to remove the arbitrator (dismissed by Ochieng, J.), to review that ruling under section 80 of the Civil Procedure Act (dismissed by Mwongo, J.), to set aside the award (dismissed by Tuiyott, J.), and opposing recognition and enforcement of the award (also dismissed). The Court of Appeal framed two preliminary issues: competence for want of leave to appeal, and whether the appeals fell within the Supreme Court's Nyutu exception. It held that leave to appeal from decisions under section 35 of the Arbitration Act is a requirement; the appellant never sought or obtained leave, collapsing Civil Appeal No. 159 of 2020. Relying on Synergy Industrial Credit v Cape Holdings, it held that decisions not anchored on section 35 are not appealable, dooming Civil Appeals Nos. 158 and 160. It further held that a challenge to remove an arbitrator after the final award is moot, as the arbitrator is functus officio; that the CPA and Order 45 review provisions do not apply to section 14 decisions; and that no Article 50 violation was established. The appeals were dismissed with costs to the respondent, including costs of the High Court and arbitral proceedings.

Key legal issues

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01

Competence of appeals filed without leave to appeal under the Arbitration Act

Holding

Leave is a requirement for appeals from High Court decisions under section 35; the appellant never sought or obtained leave, so Civil Appeal No. 159 of 2020 collapses, and the Supreme Court's Nyutu exception does not save the appeals.

Reasoning

The Supreme Court in Nyutu Agrovet held that an appeal lies to the Court of Appeal against a section 35 decision only upon leave granted in exceptional cases, where the High Court made a decision so grave and manifestly wrong that it completely closed the door of justice. The appellant neither sought leave from the High Court nor this Court. The court also noted that under Synergy Industrial Credit, only decisions anchored on section 35 are appealable, and none of these appeals is so anchored.

p. 12
02

Mootness of a challenge to remove an arbitrator after the final award

Holding

Once the final award is delivered, the arbitrator is functus officio and ceases to be in office for purposes of sections 13 and 14; a removal challenge thereafter is moot and academic.

Reasoning

Section 14(2) contemplates an arbitrator who is in office; the provision provides for removal from office, not after the arbitrator has become functus officio. Section 32A makes the award final and binding with no recourse other than as provided by the Act, and section 35 is the exclusive recourse against an award. Seeking to review a decision and substitute an order setting aside the award in a manner not contemplated by section 35 offended sections 10, 32A and 35 of the Act.

p. 7
03

Inapplicability of Civil Procedure Act review provisions to Arbitration Act decisions

Holding

The review provisions in section 80 CPA and Order 45 CPR do not apply to section 14 decisions; the Arbitration Act is self-contained under section 10 and invoking the CPA was impermissible circumvention.

Reasoning

Kenyan law recognises two routes to arbitration: court-annexed arbitration under section 59 CPA and Order 46, with more extensive court involvement, and wholly consensual arbitration under the Arbitration Act. The present arbitration was consensual. Section 10 bars court intervention except as provided in the Act, and by agreeing to arbitration parties waive rights of appeal or review beyond section 35. The court agreed with Mwongo, J. that the CPA and CPR were improperly invoked.

p. 9
04

Alleged constitutional violations and the Nyutu process-failure exception

Holding

No Article 50 violation or natural justice breach was established; the appellant was heard before the arbitrator and the High Court, so the narrow Nyutu window does not apply.

Reasoning

The only ground approaching a process failure was the Article 50 complaint, but the record showed the appellant was heard at every stage. The court cautioned against disguising ordinary grounds as constitutional issues, holding that the judges merely upheld the Act's provisions after according both parties a hearing. The appeals also did not fall under section 39(3)(b), as the High Court exercised jurisdiction under sections 14(5) and (6), 35, 36 and 37, not section 39(1) and (2).

p. 13

Legal principles established

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  • Leave to appeal is a requirement for appeals to the Court of Appeal from High Court decisions made under section 35 of the Arbitration Act; absent leave, such an appeal collapses.
  • A decision of the High Court not anchored on section 35 of the Arbitration Act is not appealable to the Court of Appeal.
  • Once an arbitrator delivers the final award, he ceases to be in office for the purposes of sections 13 and 14 of the Act, and any challenge to his removal thereafter is moot.
  • The review provisions of the Civil Procedure Act and Order 45 of the Civil Procedure Rules do not apply to decisions made under section 14 of the Arbitration Act; the Arbitration Act is self-contained and court intervention is limited to what it provides.
  • Parties who agree to arbitration waive the right to rely on grounds of appeal or review beyond those set out in section 35 of the Act.

Court orders

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  1. 1.Dismissal of the three consolidated appeals (Civil Appeal Nos. 158, 159 and 160 of 2020)
  2. 2.The appellant shall pay to the respondent the costs of the consolidated appeals, the costs of the proceedings in the High Court and the arbitral proceedings
On appeal from
High Court of Kenya, Nairobi (Commercial Division)
Nairobi High Court Miscellaneous Civil Cause No. 131 of 2016 (Commercial Division)
Jurisdiction invoked
Section 35, 14 and 39 of the Arbitration Act as interpreted by the Supreme Court in Nyutu Agrovet Limited v Airtel Networks Kenya Limited; leave to appeal requirement

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, "Godson Sixty One School Limited v Symbion Kenya Limited", Case Analysis (2023). Civil Appeal Nos. 158 of 2020, 159 of 2020 and 160 of 2020 (Consolidated). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2023/900/eng@2023-07-24

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