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ELCDismissedEnvironment and Land Case Civil Suit 73 of 2018· [2023] KEELC 17304 (KLR)

Pampa Grill Limited & another v North Lake Limited & another

Environment and Land Court
11 May 2023
5,994 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~24 min to read original · ~4 min brief

The bottom line

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A Kenyan court refused to overturn a Kshs 19 million judgment against a company that delayed six months and showed no real defence.

What this practically means

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Executive summary

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This ruling by S. O. Okong'o, J of the Environment and Land Court at Nairobi determines the 1st defendant's (Buena Bizz Limited's) Notice of Motion dated 20th December 2021 seeking stay of execution, setting aside of the judgment of 10th June 2021 entered after formal proof, and leave to file a defence out of time. The underlying suit arose from the forceful eviction of the plaintiffs from leased premises L.R No. 330/352, Nairobi pursuant to ex-parte eviction orders the 1st defendant allegedly obtained irregularly; judgment was entered for the plaintiffs for Kshs. 19,134,528 comprising security deposits, compensation for converted, stolen and destroyed goods, and general and punitive damages. The applicant argued it was never served with summons, that its former advocates took instructions from an auctioneer, and that it had a good defence. The court held the judgment was regular: the applicant's director admitted service of summons and appointment of two law firms, and prior rulings confirmed the advocates on record were served with pleadings and hearing notices. Applying the James Kanyiita Nderitu principles, the court found the five-month delay in filing the application unexplained, no defence on merit demonstrated (only technical issues such as the 2nd plaintiff's administration), and greater prejudice to the plaintiffs if the judgment were disturbed. The application was dismissed with costs to the plaintiffs.

Key legal issues

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01

Whether the judgment of 10th June 2021 was irregular

Holding

The judgment was regular because the applicant was served with summons and its advocates on record were served with pleadings and hearing notices.

Reasoning

The applicant's director admitted service of summons and appointment of two law firms. Previous rulings found the advocates on record were duly served with pleadings and hearing notices. Under the James Kanyiita Nderitu principles, an irregular judgment is one entered against a defendant not served; that was not this case, so the court's discretion under Order 10 Rule 11 applies rather than setting aside as of right.

p. 8
02

Whether the delay in filing the application was explained

Holding

The five-month delay was not reasonably explained; the claimed fee dispute and search for evidence were rejected.

Reasoning

The application was filed six months after judgment and five months after the applicant learned of it. The court found no evidence of a retainer dispute, noting the previous firm ceased acting because the applicant withdrew instructions and took its file. The applicant, having defended an interlocutory injunction application, could not credibly claim it needed five months to gather evidence.

03

Whether the applicant demonstrated an arguable defence

Holding

No defence on merit was demonstrated; only technical issues were raised.

Reasoning

The applicant did not show on a prima facie basis that the eviction was lawful or that the lower court order was lawful. It did not establish that the goods the administrator intended to sell were the same as the claimed stolen or destroyed items, nor that the 2nd plaintiff's suit lacked the administrator's authorisation.

p. 9
04

Where the balance of prejudice lies

Holding

The plaintiffs would suffer more prejudice if the judgment were set aside.

Reasoning

The plaintiffs were evicted five years ago and obtained judgment after trial; setting it aside would require a fresh hearing at added cost and further delay. The applicant had its opportunity to defend itself and did not use it, so it has only itself to blame.

p. 9

Legal principles established

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  • A judgment entered after formal proof against a defendant duly served through advocates on record is a regular judgment, settable aside only in the court's discretion upon explanation for default, demonstration of a triable issue, and consideration of delay and prejudice.
  • A mere averment that an advocate failed to file a defence, without more, is not an explanation for default; the mistake of an advocate should not be visited on the court or the other party.

Court orders

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  1. 1.The applicant's Notice of Motion application dated 20th December 2021 is dismissed
  2. 2.Costs of the application to the plaintiffs

Authorities

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Legislation

  • Civil Procedure RulesOrder 10 Rule 11
  • Civil Procedure RulesOrder 12 Rule 7

Cases cited (7)

  • James Kanyiita Nderitu & another v. Marios Philotas Ghikas & another
    [2016] eKLR

    Distinction between regular and irregular default judgments and principles for setting aside each

  • Patriotic Guards Ltd. v James Kipchirchir Sambu
    [2018] eKLR

    Judicial discretion must be exercised judiciously on legal principles, not caprice

  • Shah v. Mbogo
    (1967) E.A 116

    Discretion to set aside ex parte judgment exists to avoid injustice from accident, inadvertence or excusable mistake

  • Patel v. E. A. Cargo Handling Services
    [1974] E. A 75

    Regular judgment set aside only where a defence on the merits raising a triable issue is shown

  • Peter Ngugi Kabiri v. Esther Wangari Githinji & another
    Nyeri CA No. 36 of 2014

    Balancing right to be heard on merit against ending litigation and prompt prosecution of claims

  • Richard Ncharpi Leiyagu -vs- Independent Electoral and Boundaries Commission and 2 others
    Nyeri C.A. No. 18 of 2013

    Right to a hearing is a well-protected constitutional right and cornerstone of the rule of law

  • Stephen Ndungu Kimungu v. James Muigu & another
    [2018] eKLR

    Responsibility for an advocate's failure to perform professional duties depends on circumstances of each case

Jurisdiction invoked
Order 10 Rule 11 and Order 12 Rule 7 of the Civil Procedure Rules; inherent discretion of the Environment and Land Court

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (6)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Pampa Grill Limited & another v North Lake Limited & another", Case Analysis (2023). Environment and Land Case Civil Suit 73 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/17304/eng@2023-05-11

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