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ELCAllowednot stated in the judgment text provided· [2019] KEELC 2077 (KLR)

Lake Naivasha Crescent Camp Limited v Wagiciengo Holdings Limited & another [2019] KEELC 2077 (KLR)

Environment and Land Court at Nakuru
10 July 2019
MSMunyao Sila
539 words in judgment
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The bottom line

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Kenya's Environment and Land Court confirmed that an arbitration award nobody challenges becomes an enforceable court judgment.

What this practically means

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Executive summary

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This was an application dated 8 October 2015 by the plaintiff under section 36 of the Arbitration Act, 1995 and Rule 9 of the Arbitration Rules, 1997, seeking judgment in terms of an arbitration award dated 30 September 2015. The underlying suit, filed on 9 December 2013 by plaint against Wagiciengo Holdings Limited and Anastacia Wariara Wagiciengo, concerned leasehold agreements over LR Nos. 396/9 and 396/10 in Naivasha. The plaintiff alleged a 15-year lease from 1 January 2002 for a tented camp and restaurant, investments of Kshs. 68,900,000, and a wrongful termination of the lease by notice dated 25 November 2013 on account of claimed rent arrears of Kshs. 4,132,759, which the plaintiff disputed, contending only Kshs. 2,000,000 was owing. The matter was referred to arbitration and the suit held in abeyance. The arbitrator made his award on 30 September 2015 (delivered to parties 2 October 2015), which was not challenged. The respondents, though duly served with the adoption application, filed nothing in opposition. The court, per Munyao Sila J, entered judgment in terms of the award and allowed a decree to issue for enforcement. As the arbitrator had ordered costs of the arbitration to be shared equally, which the parties did, the court made no order as to the costs of the suit. Judgment delivered at Nakuru on 10 July 2019.

Key legal issues

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01

Adoption of an uncontested arbitration award as a court judgment

Holding

The court entered judgment in terms of the award where the respondents, though served, filed nothing to oppose the application and there was no challenge to the award.

Reasoning

The application was brought under section 36 of the Arbitration Act and Rule 9 of the Arbitration Rules seeking judgment in terms of the award of 30 September 2015. The supporting affidavit deposed that there had been no challenge to the award. Despite service, the respondents filed nothing, and the court had nothing to disbelieve the applicant. Judgment was accordingly entered in terms of the award with a decree to issue.

p. 1

Legal principles established

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  • An unchallenged arbitration award may be adopted as the judgment of the court under section 36 of the Arbitration Act, and a decree may issue for its enforcement.

Court orders

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  1. 1.Judgment entered in favour of the plaintiff in terms of the arbitration award dated 30 September 2015
  2. 2.A decree may accordingly issue for enforcement
  3. 3.No order as to the costs of the suit

Authorities

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Legislation

  • Arbitration ActSection 36
  • Arbitration RulesRule 9
Jurisdiction invoked
Section 36 of the Arbitration Act, 1995 and Rule 9 of the Arbitration Rules, 1997

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, "Lake Naivasha Crescent Camp Limited v Wagiciengo Holdings Limited & another [2019] KEELC 2077 (KLR)", Case Analysis (2019). not stated in the judgment text provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/2077/eng@2019-07-10

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