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ELCPartially AllowedNotice of Motion dated 3/11/2023 (BPRT Appeal arising from BPRT Case No. 986 of 2019)· [2024] KEELC 1143 (KLR)

Kionga Investments Company & another v Kimani (Miscellaneous Civil Application E109 of 2023) [2024] KEELC 1143 (KLR)

Environment and Land Court
4 March 2024
5,662 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~23 min to read original · ~4 min brief

The bottom line

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The court let landlords revive their appeal after a two-year delay caused by their lawyer, but refused to block enforcement because they offered no security.

What this practically means

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Executive summary

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This was a Notice of Motion dated 3/11/2023 in which the Applicants (landlords) sought leave to file and serve a Memorandum of Appeal out of time against the Ruling of the Business Premises Rent Tribunal at Nairobi (Hon. Gakuhi Chege) delivered on 12/11/2021, together with a stay of execution of that Ruling. The Tribunal had ordered the landlords to refund a deposit of Kshs. 500,000 to the Tenant/Respondent. The Respondent opposed the application through grounds of opposition and a replying affidavit, arguing it was res judicata because the Applicants had earlier sought and obtained leave and a 45-day conditional stay from the High Court (Justice Sergon, Ruling dated 15/07/2022) in HCCA No. E056 of 2022, but failed to deposit the ordered Kshs. 500,000 security; that appeal was struck out for want of jurisdiction. Only the Respondent filed submissions. The court framed three issues. On res judicata, it held that an appeal struck out for lack of jurisdiction has not been 'heard and finally determined' under Section 7 of the Civil Procedure Act, so the doctrine did not bar the application. On extension of time, although the delay of almost two years was inordinate, the explanation - that previous counsel filed the appeal in the wrong court - was held sufficient, applying the Salat principles and the rule that mistakes of advocates should not be visited on clients; prejudice could be compensated by costs. Prayers 2 and 3 were therefore allowed, with the Memorandum of Appeal deemed duly filed and served upon payment of fees. However, the stay of execution was refused: the Applicants failed to demonstrate substantial loss and offered no security as mandatorily required by Order 42 Rule 6(2). The case was directed for mention on 10/04/2024, with costs in the cause. Judgment delivered virtually at Nairobi on 4 March 2024 by MOGENI J.

Key legal issues

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01

Res judicata

Holding

The application and intended appeal are not res judicata; the earlier High Court appeal was struck out for lack of jurisdiction and therefore not heard and finally determined on the merits

Reasoning

Section 7 of the Civil Procedure Act requires that the matter in issue was heard and finally decided by a competent court. The prior appeal in HCCA No. E056 of 2022 was struck out for want of jurisdiction, which is not an adjudication on the merits. A dismissal or striking out for want of jurisdiction cannot ground res judicata, and applying it mechanically would offend Article 50(1) fair hearing and the statutory eschewal of procedural technicalities.

p. 6
02

Extension of time to file appeal

Holding

Leave to appeal out of time granted; the almost two-year delay was inordinate but sufficiently explained by previous counsel filing the appeal in the wrong court, and no prejudice compensable in costs would be suffered

Reasoning

Applying the Salat principles, the applicant must show good and sufficient cause for the delay. The delay was occasioned by misapprehension of the law by previous counsel who filed in the High Court, which was struck out on 9/11/2023, and the present application was filed about 31 days later, hence without undue delay. Any prejudice to the respondent can be compensated by costs, and the memorandum of appeal discloses an arguable case.

p. 8
03

Stay of execution

Holding

Stay refused; the Applicants failed to demonstrate substantial loss and offered no security

Reasoning

Under Order 42 Rule 6(2), the applicant must show substantial loss, that the application was made without unreasonable delay, and must furnish security. The Applicants merely asserted exposure to execution without evidencing substantial loss, and evaded the issue of security despite a money decree of Kshs. 500,000. Security is mandatory, and its absence disentitles them to a stay.

p. 9

Legal principles established

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  • A suit dismissed or struck out for want of jurisdiction has not been 'heard and finally decided' for purposes of res judicata under Section 7 of the Civil Procedure Act; a party may file a fresh appeal after the earlier appeal is struck out for lack of jurisdiction
  • Mistakes of advocates should not be visited upon their clients when considering extension of time to appeal
  • Security is a mandatory condition precedent for a stay of execution under Order 42 Rule 6(2)(b); a stay cannot be granted where no security is offered

Court orders

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  1. 1.The Appellants are granted leave to appeal out of time in terms of prayer 2 of the motion dated 3/11/2023
  2. 2.The Memorandum of Appeal filed and served by the Applicants against the Ruling of the Business Premises Rent Tribunal at Nairobi (Hon. Gakuhi Chege) delivered on 12/11/2021 be and is hereby deemed as duly filed and served within time upon payment of the requisite fees
  3. 3.Case to be mentioned for directions on 10/04/2024
  4. 4.Costs be in the cause

Authorities

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Legislation

  • Civil Procedure Act (Cap 21)Sections 1A, 1B, 3A, 7, 79G, 95
  • Civil Procedure RulesOrder 42 Rules 6(1), 6(2); Order 51 Rule 1
  • Constitution of KenyaArticles 50(1), 159(2)(d)
  • Environment and Land Court ActSection 19(1)

Cases cited (17)

  • Christopher Kenyariri vs Salama Beach
    (2017) eKLR
  • E.T v Attorney General & Another
    [2012] eKLR
  • Omondi Vs National Bank of Kenya Limited and Others
    (2001) EA 177
  • Njangu vs Wambugu and another
    Nairobi HCCC No.2340 of 1991 (unreported)
  • Suleiman Said Shabhal v Independent Electoral & Boundaries Commission & 3 Others
    [2014] eKLR
  • Amtim Capital Inc v Appliance Recycling Centres of America
    2014 ONCA 62
  • Benjamin Koech v Baringo County Government & 2 others; Joseph C. Koech (Interested Party)
  • Nicholas Kiptoo Arap Korir Salat v Independent Electoral and Boundaries Commission & 7 others
    [2014] eKLR
  • Kenya Power and Lighting Company Limited v IO suing through GIO
    [2020] eKLR
  • Patriotic Guards Limited v James Kipchirchir Sambu
    [2018] eKLR
  • Andrew Kiplagat Chemaringo v Paul Kipkorir Kibet
    [2018] eKLR
  • Butt v Rent Restriction Tribunal
    [1982] KLR 417
  • Machira T/A Machira & Co. Advocates v East Africa Standard
    [2002] eKLR
  • Aron C. Sharma v Ashana Raikundalia T/A Rairundalia & Co. Advocates
  • Equity Bank Ltd v Taiga Adams Company Ltd
    [2006] eKLR
  • Carter & Sons Ltd v Deposit Protection Fund Board & 3 Others
  • Mukuma v Abuoga
    [1988] K.L.R 645
On appeal from
Business Premises Rent Tribunal at Nairobi (Hon. Gakuhi Chege)
BPRT Case No. 986 of 2019
Jurisdiction invoked
Sections 1A, 1B, 3A & 79G of the Civil Procedure Act (Cap 21), Order 42 & Order 51 Rule 1 of the Civil Procedure Rules

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, "Kionga Investments Company & another v Kimani (Miscellaneous Civil Application E109 of 2023) [2024] KEELC 1143 (KLR)", Case Analysis (2024). Notice of Motion dated 3/11/2023 (BPRT Appeal arising from BPRT Case No. 986 of 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/1143/eng@2024-03-04

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