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Court of AppealDismissedCivil Appeal No E104 of 2021· [2024] KECA 250 (KLR)

Mwangi v Consolidated Bank of Kenya Ltd & 3 others (Civil Appeal E104 of 2021) [2024] KECA 250 (KLR)

Court of Appeal of Kenya
8 March 2024
3,908 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that litigants who repeatedly skip hearings and give shifting excuses for adjournments can have their cases dismissed for good.

What this practically means

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Executive summary

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The Court of Appeal (M'Inoti, Tuiyott and Ngenye-Macharia, JJA) dismissed an appeal by John Mathara Mwangi against the ruling of the High Court (Majanja, J.) of 10th February 2021 dismissing his suit for want of prosecution. The underlying suit challenged the 1st respondent bank's sale, by public auction to the 2nd respondent, of the appellant's Garden Estate property charged for an unpaid loan, on grounds of undervaluation, fraud and violation of the in duplum rule under section 44A of the Banking Act. On the virtual hearing date, the appellant twice sought adjournments on shifting grounds - indisposition, lack of instructions, counsel's diary conflict and a late wish for a physical hearing - which the judge refused; the appellant then failed to prosecute the suit and it was dismissed. The Court applied the United India Insurance test for interfering with discretionary decisions and found no misdirection, misapprehension of facts, or plainly wrong decision. It held that adjournment is not a birthright, that presenting four inconsistent reasons showed lack of candour, and that Order 12 rule 3(1) required dismissal absent good cause. It rejected the claims of a lacuna in the legal framework for virtual hearings, citing the gazetted Practice Directions on Electronic Case Management, 2020; rejected alleged bias on the bias-apprehension test; and held D.T. Dobie and Philip Chemwolo distinguishable. The appeal was dismissed with costs to the 1st and 2nd respondents, affirming the High Court ruling.

Key legal issues

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01

Whether the trial judge's refusal of the adjournment and dismissal for want of prosecution were a proper exercise of discretion

Holding

The judge properly exercised his discretion: the appellant presented four inconsistent reasons for adjournment on two occasions, was absent when the suit was called, and showed no good cause against dismissal.

Reasoning

The court applied the United India Insurance principles for interfering with discretionary decisions and found none established. The hearing had been adjourned more than three times previously at the appellant's instance. The inconsistent grounds advanced - indisposition, lack of instructions, counsel's diary conflict, and a wish for physical hearing - revealed a lack of candour, and Order 12 rule 3(1) mandated dismissal absent good cause.

p. 6
02

Whether the appellant's right to access justice and be heard was violated

Holding

The right to be heard does not entitle a party to hold the court to ransom; it applies only in deserving cases and must be balanced against expeditious disposal.

Reasoning

The court held that the appellant, having repeatedly failed to appear and having advanced dubious adjournment grounds, could not invoke the Constitution or the overriding principle. Justice delayed defeats the equally important principle of expeditious resolution of disputes, and the constitutional right to be heard is not absolute in the litigation context.

p. 6
03

Whether there was a lacuna in the legal framework for virtual hearings

Holding

There was no lacuna; the Practice Directions on Electronic Case Management, 2020, gazetted on 20th March 2020, governed virtual proceedings, so the ground was an afterthought and a red herring.

Reasoning

The Chief Justice had gazetted elaborate Practice Directions covering e-filing, e-service, electronic discovery, video and audio conferencing within a week of the first Covid-19 case. It was disingenuous for the appellant to claim, a year later, that no framework existed. The belated wish for an open-court hearing, raised only after adjournment failed, was an afterthought.

p. 6
04

Whether the trial judge was biased or failed to keep an accurate record

Holding

No bias was established: the complete record captured both parties' submissions, and costs were awarded properly as costs follow the event.

Reasoning

Applying the reasonable-apprehension test for bias, the court found an informed observer aware of the antecedents, prior adjournments and the weak adjournment grounds would not apprehend bias. The appellant had relied on a truncated record; the complete supplementary record showed accurate proceedings, and the costs award upon dismissing the suit was neither irregular nor an afterthought.

p. 6
05

Whether the learned judge erred in failing to follow binding precedent (D.T. Dobie and Philip Chemwolo)

Holding

Those decisions were distinguishable: D.T. Dobie concerned summary dismissal of a suit and Philip Chemwolo setting aside a default judgment, neither applicable to dismissal for want of prosecution after refusal of adjournment.

Reasoning

The court held that the cited authorities dealt with different procedural situations and were easily distinguishable from the issues before the trial judge, namely refusal of an adjournment and dismissal for failure to prosecute when called upon. Their non-application therefore involved no breach of stare decisis.

p. 7

Legal principles established

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  • The Court of Appeal will not interfere with a discretionary decision of the High Court unless the judge misdirected himself in law, misapprehended the facts, took into account irrelevant considerations, failed to take account of relevant considerations, or the decision is plainly wrong (United India Insurance v East African Underwriters).
  • An adjournment is not a party's entitlement; once a suit is set down for hearing, adjournment is the exception and must be justified by genuine and bona fide reasons under Order 17 rule 1 of the Civil Procedure Rules.
  • A party presenting multiple inconsistent reasons for adjournment displays lack of candour and cannot expect an adjournment to be granted.
  • Where the plaintiff does not appear and the defendant is present on the hearing date, the suit is to be dismissed under Order 12 rule 3(1) unless good cause is shown.
  • Constitutional and overriding-principle rights to be heard are not a licence to delay; courts will hear suits on merit only in deserving cases, balancing them against expeditious resolution of disputes.
  • The test for judicial bias is whether the circumstances would give a reasonable, fair-minded and informed member of the public a reasonable apprehension that the judge will not act impartially.
  • The Practice Directions on Electronic Case Management, 2020, gazetted on 20th March 2020, provided a legal framework for virtual hearings applicable to all courts.

Court orders

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  1. 1.The appeal is dismissed with costs to the 1st and 2nd respondents

Authorities

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Legislation

  • Banking Actsection 44A
  • Civil Procedure RulesOrder 17 rule 1
  • Civil Procedure RulesOrder 12 rule 3(1)
  • Judiciary Code of Conductregulation 9(1)
  • Practice Directions on Electronic Case Management, 2020Gazette No. 2357 (20th March 2020)

Cases cited (18)

  • D.T. Dobie & Company (K) Ltd v Joseph Mbaria Muchina
    [1980] eKLR
  • Philip Chemwolo & Another v. Augustine Kubende
    [1986] eKLR
  • Essanji & Another v. Solanki
    [1968] EA 218
  • Geofirey M. Asanyo & 3 Others v Attorney General
    [2020] eKLR
  • Dodhia v. National & Grindlays Bank Ltd. & Another
    [1970] EA 195
  • Protus Evans Masinde v. Cheng Katana Kioi & 3 others
    [2021] eKLR
  • Kasmir Wesonga Ongoma & Another v Wanga
    [1987] eKLR
  • Lucy Bosire v. Kehancha Division Land Dispute Tribunal & 2 Others
    [2013] eKLR
  • Shah v Mbogo
    [1968] EA 93
  • Kaisugu v Stephen George & 103 Others
    [2007] eKLR
  • Pandya Memorial Hospital v Geeta Joshi
    [2020] eKLR
  • Mbithika Titus v. Jackline Mutindi
    [2020] eKLR
  • Samuel Thalami M'Maitai v. Susan Kairuthi Mbirithi
    [2021] eKLR
  • Savannah Development Co. Ltd. v. Mercantile Finance Co. Ltd.
    [1992] eKLR
  • M/s Shiv Cotex v. Tirgun Auto Plant P. Ltd & Others
    CA No. 7532 of 2011
  • Mukabi Ways Co. Ltd v Family Bank Ltd
    [2015] eKLR
  • United India Insurance Co. Ltd. v East African Underwriters (Kenya) Ltd.
    [1985] E.A 898
  • Kalpana H. Rawal v Judicial Service Commission of Kenya & 2 Others
    [2016] eKLR
On appeal from
High Court of Kenya at Nairobi
Not stated in the judgment
Jurisdiction invoked
First appeal to the Court of Appeal against the ruling of the High Court (not expressly tied to a constitutional provision in the judgment)

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, "Mwangi v Consolidated Bank of Kenya Ltd & 3 others (Civil Appeal E104 of 2021) [2024] KECA 250 (KLR)", Case Analysis (2024). Civil Appeal No E104 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/250/eng@2024-03-08

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