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ELCPartially AllowedNot stated in the extract (Notice of Motion dated 28th February 2018)· [2019] KEELC 3086 (KLR)

Julius Musili Kyunga v Kenya Commercial Bank & another;James Muriuki Karaya(Interested Party) [2019] KEELC 3086 (KLR)

Environment and Land Court of Kenya
30 May 2019
3,805 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court set aside a secret consent order that harmed a non-party, but let the plaintiff's suit withdrawal stand.

What this practically means

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Executive summary

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This is a ruling of the Environment and Land Court at Mombasa (C.K. Yano, J) on a Notice of Motion dated 28th February 2018 by the Interested Party, James Muriuki Karaya, who had successfully bid for LR No.2812/I/MN at a public auction in November 2008 and paid a 25% deposit before court orders halted completion. He sought to set aside (a) a notice of withdrawal of suit filed by the plaintiff on 12th July 2016 purporting to withdraw the suit against him, and (b) a consent order of even date between the plaintiff and the defendants, both filed without his knowledge, service or involvement. The plaintiff objected to the competence of the affidavit sworn by the Interested Party's advocate and argued for an absolute right of withdrawal under Order 25 Rule 1, while the defendants contended the Interested Party could be compensated by costs. The court rejected the technical objection to the affidavit, applying Article 159(2)(d). On withdrawal, although the suit had been set down for hearing so the notice invoked the wrong rule and lacked leave, the court, bound by the Supreme Court's decision in Salat v IEBC, declined to set aside the notice of withdrawal, noting the withdrawal carried costs and the Interested Party's counter-claim remains alive. However, the court set aside the consent order, finding it was reached secretly and in collusion without the Interested Party, whose rights over the suit property and whose 25% deposit it purported to abrogate. The application was allowed in terms of prayer 4, with costs to the Interested Party.

Key legal issues

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01

Competence of an advocate swearing an affidavit for a client in an interlocutory application

Holding

The objection is technical and rejected; an advocate may depone to an affidavit in an interlocutory application on facts within his knowledge that do not decide the rights of the parties

Reasoning

The court held the plaintiff's attack on the affidavit was pure technicality contrary to Article 159(2)(d) of the Constitution. An advocate is permitted to swear affidavits in interlocutory applications on facts within his knowledge, and only in contentious matters would such an affidavit be objectionable. The deponent merely referred to court record facts.

p. 3
02

Whether the notice of withdrawal of suit should be set aside

Holding

Refused. The plaintiff's right to withdraw cannot be taken away; the Interested Party has costs and may still pursue his counter-claim

Reasoning

The court acknowledged that the suit had been set down for hearing on 17th November 2016, so the notice of withdrawal invoked the wrong rule and was procedurally ineffective without leave. However, bound by Supreme Court authority in Salat v IEBC, the court could not bar the withdrawal. Since the notice withdrew the suit with costs and the Interested Party's counter-claim remains alive, no prejudice was established.

p. 4
03

Whether the consent order dated 11th July 2016 should be set aside

Holding

Set aside. The consent was reached without the involvement of the Interested Party whose rights it abrogated, and in collusion

Reasoning

The consent was signed only by advocates for the plaintiff and defendants, yet provided for refund of the Interested Party's 25% deposit and dealt with his rights over the suit property. There was no evidence he agreed to the refund. A consent binding a non-party reached secretly, and in the court's view collusively, cannot stand; the parties had a duty to involve the Interested Party.

p. 5

Legal principles established

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  • A consent order entered into secretly and without the involvement of an interested party whose rights it seeks to abrogate is liable to be set aside
  • Once a suit has been set down for hearing, unilateral withdrawal under Order 25 Rule 1 is ineffective; leave of the court or consent of all parties is required

Court orders

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  1. 1.The consent order between the plaintiff and the defendants dated 11th July 2016 and filed on 12th July 2016 and all consequential orders therefrom is set aside
  2. 2.The notice of motion dated 28th February 2018 is allowed in terms of prayer 4 thereof
  3. 3.The Interested Party is awarded costs of the application

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 159(2)(d)
  • Civil Procedure Rules, 2010Order 25 Rules 1, 2, 3 and 4

Cases cited (14)

  • Kentainers Ltd v Assani
    HCCC NO.1625 of 1996
  • Simon Isaac Ngui v Overseas Courier Services (K) Ltd
    (1998) KLR
  • Moses Wachira v Niels Bruel and 2 Others
    (2013) eKLR
  • Beijeng/Beijing Industrial Designing & Research Institute v Lagon Development Limited
    (2005) eKLR / (2015) eKLR
  • Kofinaf Company Limited and Another v Nahashon Ngige Nyagah & 20 Others
    (2017) eKLR
  • Regina Waithira Mwangi Gitau v Boniface Nthenge
    (2015) eKLR
  • Francis Kimutai Bii v Kaisugu (Kenya) Limited
    (2016) eKLR
  • Isaac Ngugi v Overseas Courier Services (K) Ltd
    (1998) eKLR
  • Kisya Investments Ltd & Others v Kenya Finance Corporation Ltd
  • Nicholas Kiptoo Arap Korir Salat v Independent Electoral and Boundaries Commission & 7 Others
    SC App No. 16 of 2014 / (2014) eKLR
  • Samuel Mbugua Ikumbu v Barclays Bank of Kenya Ltd
    (2015) eKLR
  • Agricultural Finance Corporation v Lengetia Limited & Jack Mwangi
    (1985) eKLR
  • John O. Ochanda v Telkom Kenya Limited
    (2014) eKLR
  • Flora Wasike v Destimo Wamboko
    (1982-1988) I KAR 625
Jurisdiction invoked
Original civil jurisdiction; proceedings under Order 25 of the Civil Procedure Rules, 2010

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, "Julius Musili Kyunga v Kenya Commercial Bank & another;James Muriuki Karaya(Interested Party) [2019] KEELC 3086 (KLR)", Case Analysis (2019). Not stated in the extract (Notice of Motion dated 28th February 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/3086/eng@2019-05-30

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