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ELCDismissedMiscellaneous Application dated 14/01/2022 (ELC, Milimani)· [2022] KEELC 2272 (KLR)

Bebadis Company Limited v Nyotta & another (Environment & Land Miscellaneous Case E011 of 2022) [2022] KEELC 2272 (KLR)

Environment and Land Court
23 May 2022
4,218 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled you cannot transfer a case filed in the wrong court; it must be withdrawn and filed afresh in the right one.

What this practically means

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Executive summary

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The Applicant (through Daniel Kimani Kariuki, said to be a director of Bebadis Ltd) moved the Environment and Land Court by a miscellaneous application dated 14/01/2022 seeking withdrawal of Milimani CMCC No. 10717 of 2018 from the Chief Magistrate's Court and its transfer to the High Court/ELC, on the ground that an amended defence and counterclaim of Kshs. 33,035,772.00 exceeded the subordinate court's pecuniary jurisdiction. Before the application was heard, the 1st and 2nd Respondents filed a Notice of Preliminary Objection on ten grounds, contending that the application was a nullity based on an unfiled pleading, that the Applicant lacked locus standi as a former director, and that the matter was res judicata, sub-judice and an abuse of process amounting to forum shopping. The court applied the Mukisa Biscuits test and held that only the locus standi/jurisdiction ground was a pure point of law; grounds on res judicata, sub-judice and abuse of process required probing of evidence and were improperly raised. On locus standi, the court noted leave had been granted to file the amended defence and counterclaim, board resolutions authorised Mr Kariuki, and whether he was a 'former director' required evidence, so grounds 1 and 2 failed and the Preliminary Objection was dismissed entirely with costs in the cause. On the transfer application, invoking Equity Bank v Bruce Mutie Mutuku, Phoenix of EA Assurance and Mini Bakeries, the court held that a suit filed in a court without jurisdiction is incompetent and cannot be transferred under Section 18 of the Civil Procedure Act; the remedy is withdrawal and fresh filing in a competent court. The application was dismissed, with each party bearing its own costs, and the file closed.

Key legal issues

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01

Whether the respondents' grounds qualified as a proper preliminary objection

Holding

Only ground 2 (locus standi/jurisdiction) met the Mukisa Biscuits test; grounds on res judicata, sub-judice, forum shopping and abuse of process required probing of evidence and were improperly raised

Reasoning

Applying Mukisa Biscuits, a preliminary objection must be a pure point of law argued on the assumption that all pleaded facts are correct. The court held that res judicata and sub-judice grounds require ascertainment of disputed facts and evidence, hence cannot be raised in limine. Upholding such an objection would be draconian.

p. 6
02

Whether the Applicant had locus standi

Holding

The objection to standing failed: leave to file the amended defence and counterclaim had been granted, board resolutions authorised Daniel Kimani Kariuki, and the claim that he was a 'former director' required evidence

Reasoning

The record showed a court order of 12/01/2022 granting leave to file the amended defence and counterclaim, board resolutions of 10/01/2022 and 3/02/2022, and an earlier finding that the Applicant was a director. Whether he was a former director required evidence and could not be determined via preliminary objection.

p. 5
03

Whether the subordinate court suit should be transferred to the High Court/ELC

Holding

The application for transfer failed because the counterclaim exceeded the magistrate court's pecuniary jurisdiction, rendering the suit incompetent and not capable of transfer under Section 18

Reasoning

Relying on Equity Bank v Bruce Mutie Mutuku, Phoenix of EA Assurance and Mini Bakeries, the court held that a suit filed in a court lacking jurisdiction cannot be sanctified by transfer under Section 18; parties cannot consent to confer jurisdiction, and the overriding objective cannot cure a fundamental lack of jurisdiction.

p. 8

Legal principles established

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  • A suit filed before a court lacking jurisdiction is incompetent and cannot be transferred under Section 18 of the Civil Procedure Act to a competent court; it must be withdrawn and filed afresh
  • Grounds of res judicata, sub-judice and abuse of process involving disputed facts do not qualify as preliminary objections

Court orders

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  1. 1.The Notice of Preliminary Objection dated 28/01/2022 is dismissed entirely with costs in the cause
  2. 2.The Application dated 14/01/2022 is dismissed
  3. 3.Each party to bear its own costs
  4. 4.File closed

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 3A, 18, 7
  • Civil Procedure Rules, 2010Order 51 Rule 1, Order 1 rule 10(2), Order 8 Rule 3
  • Constitution of Kenya, 2010Articles 159(2)(d), 50

Cases cited (14)

  • Mukisa Biscuit Manufacturing Co. Ltd -vs- West End Distributors Ltd
    (1969) EA 696
  • Owners of Motor Vessel 'Lilian S' -vs- Caltex Oil (Kenya) Ltd
    (1989) 1 KLR
  • Law Society of Kenya -vs- Commissioner of Lands & Others
    Nakuru High Court Civil Case No.464 of 2000
  • Alfred Njau and Others -vs- City Council of Nairobi
    (1982) KAR 229
  • Wilmot Mwadilo, Edwin Mwakaya, Amos Nyatta & Patrick Mbinga -vs- Eliud Timothy Mwamunga & Sagalla Ranchers Limited
    [2017] eKLR
  • Henry Wanyama Khaemba -vs- Standard Chartered Bank Ltd & Another
    (2014) eKLR
  • George Kamau Kimani & 4 Others -Vs- County Government of Trans Nzoia & Another
    (2014) eKLR
  • Quick Enterprises Ltd -vs- Kenya Railways Corporation
    Kisumu HCCC No.22 of 1999
  • United Insurance Co. Ltd -vs- Scholastica A. Odera
    Kisumu HCCA No.6 of 2005
  • Phoenix of EA Assurance Company Limited vs. SM Thiga t/a Newspaper Service
    (2019) eKLR
  • Equity Bank Limited vs. Bruce Mutie Mutuku t/a Diani Tour Travel
    (2016) eKLR
  • Mini Bakeries (NRB) Limited vs Levi Kariz Oriedo
    (2020) eKLR
  • Tata Chemicals Magadi Limited vs County Governor, Kajiado County & another; National Environmental Management Authority & another (Interested Parties)
    (2020) eKLR
  • Salomon vs Salomon Co.
    [1897] A.C.22
Jurisdiction invoked
Sections 1A, 3A and 18(b)(i) of the Civil Procedure Act; Order 51 Rule 1 of the Civil Procedure Rules, 2010; Article 159 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, "Bebadis Company Limited v Nyotta & another (Environment & Land Miscellaneous Case E011 of 2022) [2022] KEELC 2272 (KLR)", Case Analysis (2022). Miscellaneous Application dated 14/01/2022 (ELC, Milimani). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/2272/eng@2022-05-23

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