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ELCPartially AllowedNot stated in the judgment (Notice of Motion dated 21st April 2017)· [2019] KEELC 3739 (KLR)

Anne Wanjiku Gathoni v Monica Mwikali Mwanzia [2019] KEELC 3739 (KLR)

High Court of Kenya
25 March 2019
1,647 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's High Court set aside an interlocutory judgment because the claim mixed liquidated damages with declarations and injunctions, meaning default judgment was never available.

What this practically means

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Executive summary

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This is a ruling on the defendant's Notice of Motion dated 21st April 2017 seeking to set aside an interlocutory judgment entered by the Deputy Registrar on 23rd September 2015 in a suit arising from a sale agreement over LR No. Ngong/Ngong/21441, and seeking leave to file a defence and counterclaim. The plaintiff opposed, arguing the judgment was regular, the defendant had delayed three years, and the defence was a sham. The court framed two issues: whether the plaintiff's cause of action warranted interlocutory judgment, and whether the Deputy Registrar had jurisdiction to enter it. Applying Order 10 rules 4(2) and 4(6) of the Civil Procedure Rules, 2010, the court held that the plaint, which sought liquidated damages of Kshs 650,000 together with declaratory, injunctive and eviction reliefs, was not a claim in which interlocutory judgment could be entered; such reliefs required formal proof. Relying on Meir vs Nairobi City Council (as approved in W. M. Muiruri vs V.O.P Ngonge) and Mint Holdings Ltd vs Trust Bank Ltd, the court found the entry of interlocutory judgment irregular and held that the Deputy Registrar had no jurisdiction to enter it. Invoking Order 10 Rule 11 and Article 50(1) of the Constitution, and finding the draft defence and counterclaim raised triable issues, the court set aside the interlocutory judgment, granted the defendant twenty-one days to file and serve her defence and counterclaim, with corresponding leave to the plaintiff to reply, and ordered the defendant to bear the costs of the application. The application succeeded in full.

Key legal issues

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01

Availability of interlocutory judgment for the plaintiff's claim

Holding

The plaint sought declaratory, injunctive and eviction reliefs and did not fit Order 10 rule 4(2); interlocutory judgment was not available and the entry of it was irregular.

Reasoning

The court examined Order 10 rules 4(2) and 4(6) of the Civil Procedure Rules, 2010. Rule 4(2) applies where a plaint makes a liquidated demand together with some other claim, and rule 4(6) requires formal proof for other claims. The plaint sought liquidated damages of Kshs 650,000 plus declaratory, injunctive and eviction orders, so the claim required formal proof. The court applied Meir vs Nairobi City Council and Mint Holdings Ltd vs Trust Bank Ltd, which held that interlocutory judgment was not available where the reliefs sought require formal proof.

p. 2
02

Jurisdiction of the Deputy Registrar to enter interlocutory judgment

Holding

The Deputy Registrar had no jurisdiction to enter the interlocutory judgment against the defendant.

Reasoning

Since the claim was not one in which interlocutory judgment could be entered at all, the Deputy Registrar lacked jurisdiction to enter it. The court found that the plaintiff's application dated 9th May 2014 sought declaratory and injunctive reliefs, which required formal proof, and concluded that the judgment entered on 23rd September 2015 was irregular and a nullity that the court could set aside ex justitiae debito.

p. 3
03

Discretion to set aside default judgment and the right to be heard

Holding

Under Order 10 Rule 11 the court has discretion to set aside a default judgment on such terms as are just, and Article 50(1) entitled the defendant to be heard; the draft defence and counterclaim raised triable issues.

Reasoning

The court invoked Order 10 Rule 11 of the Civil Procedure Rules and Article 50(1) of the Constitution guaranteeing the right to be heard. It noted the parties entered into a new sale agreement dated 17th January 2014 and that the defendant was in occupation of the suit property. Finding the draft defence and counterclaim to raise triable issues, the court exercised its discretion in favour of setting aside the irregular judgment so the defendant could prosecute her defence.

p. 3

Legal principles established

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  • Interlocutory judgment is only available where a plaint makes a liquidated demand only, or a liquidated demand together with some other claim; where the reliefs sought require formal proof, entry of interlocutory judgment is irregular.

Court orders

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  1. 1.The interlocutory judgment entered by the Deputy Registrar on 23rd September 2015 is set aside
  2. 2.The defendant is granted leave to file and serve the defence and counterclaim annexed to the application within twenty-one (21) days, with corresponding leave to the plaintiff to file and serve a reply to the defence and counterclaim if need be
  3. 3.Costs of the application to be borne by the defendant/applicant

Authorities

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Legislation

  • Civil Procedure ActSections 1, 1A, 1B, 3A
  • Civil Procedure Rules, 2010Order 10 Rule 4(2)
  • Civil Procedure Rules, 2010Order 10 Rule 4(6)
  • Civil Procedure Rules, 2010Order 10 Rule 11
  • Civil Procedure Rules, 2010Order 51 Rule 1
  • Constitution of Kenya, 2010Article 50(1)

Cases cited (9)

  • Meir vs Nairobi City Council & Others
    Milimani HCC Commercial Case No. 131 of 2003
  • W. M. Muiruri t/a Senior Deputy Registrar High Court of Kenya vs V.O.P Ngonge t/a O.P Ngoge & Associates Advocate
    [2008] eKLR
  • Mint Holdings Ltd & Another vs Trust Bank Ltd
    [2000] eKLR
  • Unilever Kenya Ltd vs Proctor & Gamble International Operations SA & Procter & Another
    [2015] eKLR
  • Robertson Insurance Brokers Ltd vs Kipngetich K. Bett & Another
    [2003] eKLR
  • Sagoo vs Dourado
    [1983] KLR 365-366
  • William Kazungu Karisa vs Cosmas Angore Chanzera
    [2006] eKLR
  • Gurdev Singh Birdi & Marinder Singh Ghatora & Others vs Abubakar Madhbuti
    CA Civil Appeal No. 65 of 1996
  • National Bank of Kenya Limited vs Pipeplastic Samkolit (K) Limited & Another
    [2002] 2 EA 503
Jurisdiction invoked
Sections 1, 1A, 1B and 3A of the Civil Procedure Act (Cap 21) and Order 10 Rule 11 of the Civil Procedure Rules, 2010; Article 50(1) of the Constitution

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, "Anne Wanjiku Gathoni v Monica Mwikali Mwanzia [2019] KEELC 3739 (KLR)", Case Analysis (2019). Not stated in the judgment (Notice of Motion dated 21st April 2017). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/3739/eng@2019-03-25

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