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ELCOtherELC Suit No. 505 of 2011· [2018] KEELC 438 (KLR)

Kobil Petroleum Limited v Alfaways Limited & 2 others [2018] KEELC 438 (KLR)

Environment and Land Court
6 December 2018
2,734 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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This ruling by the Environment and Land Court at Nairobi determined the 2nd defendant's Notice of Motion dated 15th January 2014 seeking striking out of the plaintiff's plaint for contravention of sections 7 and 8 of the Civil Procedure Act, or in the alternative a stay of proceedings pending determination of HCCC No. 897 of 2010 (Family Bank Ltd v Kobil Petroleum Ltd). The dispute arose from a lease between Posta Investment Co-operative Society and the plaintiff over a portion of LR 1/933, Nairobi, containing a right of pre-emption in the plaintiff's favour. Posta nonetheless conveyed the entire parcel to the 1st defendant in July 2010, prompting multiple suits: the plaintiff filed HCCC No. 652 of 2010 against Posta and the 1st defendant; the 2nd defendant filed HCCC No. 897 of 2010 against the plaintiff after the plaintiff threatened to terminate its licence and evict it; and the plaintiff then filed the present suit seeking possession and mesne profits against the 1st, 2nd and 3rd defendants. The court framed a single issue: whether the suit offended sections 6, 7 and 8 of the Civil Procedure Act and the appropriate remedy. The court found the issues in the present suit and HCCC No. 897 of 2010 substantially the same and between the same parties as regards the plaintiff and 2nd defendant, so the suit was barred by section 6. It was not res judicata since the prior suit remained undetermined. The court stayed the suit pending determination of HCCC No. 897 of 2010, declined to consolidate the suits on grounds of public policy against multiplicity of suits, and awarded the 2nd and 3rd defendants the costs of the application.

Key legal issues

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01

Whether the plaintiff's suit contravened section 6 of the Civil Procedure Act (subjudice) given the pendency of HCCC No. 897 of 2010

Holding

The suit offended section 6 as the issues between the plaintiff and the 2nd defendant were substantially the same and between the same parties as in the previously instituted suit

Reasoning

The court compared the pleadings in the present suit and HCCC No. 897 of 2010 and found the issues substantially the same, with both suits concerning the ownership of the entire parcel LR 1/933 and occupation of portions thereof. Both suits were between the same parties litigating under the same title, and HCCC No. 897 of 2010 was still pending, so the court was precluded from proceeding with trial of this suit as between the plaintiff and the 2nd defendant.

p. 3
02

Whether the suit was res judicata under sections 7 and 8 of the Civil Procedure Act

Holding

The suit was not res judicata because HCCC No. 897 of 2010 had not been heard and determined

Reasoning

Res judicata under section 7 requires that the previously instituted suit has been heard and finally determined. Since HCCC No. 897 of 2010 was still pending, the plaintiff's suit could not be struck out as res judicata, though it was barred under section 6, which empowers the court to stay it.

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03

The appropriate remedy for the breach of section 6

Holding

A stay of the present suit pending determination of HCCC No. 897 of 2010, rather than striking out or consolidation

Reasoning

The court held that stay was the best course. Striking out was unavailable as res judicata had not crystallised, and consolidation or hearing the suits side by side would encourage multiplicity of suits, which public policy frowns upon. The plaintiff's filing of multiple suits over the same subject matter instead of joining all parties in one suit was unjustified.

p. 3

Legal principles established

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  • Section 6 of the Civil Procedure Act precludes a court from trying a suit where the matter in issue is directly and substantially in issue in a previously instituted suit between the same parties litigating under the same title, and empowers the court to stay the later suit
  • A suit pending before another court cannot be res judicata under section 7 until it has been heard and determined

Court orders

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  1. 1.This suit is stayed pending the hearing and final determination of Nairobi HCCC No. 897 of 2010, Family Bank Limited v Kobil Petroleum Limited or further orders by the court
  2. 2.The 2nd and 3rd defendants shall have the costs of the application

Authorities

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Legislation

  • Civil Procedure Act, Chapter 21 Laws of Kenyasection 3A
  • Civil Procedure Act, Chapter 21 Laws of Kenyasection 6
  • Civil Procedure Act, Chapter 21 Laws of Kenyasection 7
  • Civil Procedure Act, Chapter 21 Laws of Kenyasection 8

Cases cited (3)

  • Nairobi HCCC No. 652 of 2010 Kobil Petroleum Ltd. v Posta Investment Co-operative Society Ltd. and Alfaways Ltd
  • Nairobi HCCC No. 897 of 2010, Family Bank Ltd. v Kobil Petroleum Ltd.
  • HCCC No. 826 of 2013 Kobil Petroleum Ltd. v Alfaways Limited
Jurisdiction invoked
Sections 3A, 6, 7 and 8 of the Civil Procedure Act, Chapter 21 Laws of Kenya

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, "Kobil Petroleum Limited v Alfaways Limited & 2 others [2018] KEELC 438 (KLR)", Case Analysis (2018). ELC Suit No. 505 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/438/eng@2018-12-06

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