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ELCAllowedNot stated in the excerpt provided· [2024] KEELC 6528 (KLR)

Hasmo Agencies Limited v National Social Security Fund; Koros & 3 others (Contemnor) (Land Case E052 of 2023) [2024] KEELC 6528 (KLR)

Environment and Land Court
3 October 2024
2,589 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 contempt findings against NSSF officers because they were never properly served with the contempt application.

What this practically means

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Executive summary

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The 1st to 4th contemnors, officers of the National Social Security Fund, moved the court by Notice of Motion dated 8th April 2024 seeking to set aside the ruling of 7th March 2024 in which they were found in contempt of injunction orders issued on 14th and 15th August 2023, and for leave to defend the contempt application dated 9th November 2023. They contended they were never personally served with the contempt application, which was served by email and phone in breach of Order 5 Rules 22B and 22C of the Civil Procedure Rules, and that they were not represented in their personal capacity at the hearing. The plaintiff opposed, asserting the contemnors had knowledge of the proceedings, were represented through the firm on record, and had authorized the Head of Legal, Hellen Koech, to swear affidavits on their behalf, yet had failed to purge the contempt. The court framed three issues: notice, representation, and whether the ruling of 7th March 2024 should be set aside. Relying on African Management Communication International Ltd v Joseph Mathenge Mugo, it held officers must be personally served or shown to have personal knowledge before being held personally liable for contempt. Finding no delivery receipt annexed as required, the court held the contemnors, save Hellen Koech, were not duly served and were denied an opportunity to be heard. The court set aside the ruling of 7th March 2024, granted leave to defend the contempt application, and ordered costs of the application to be in the course.

Key legal issues

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01

Whether the contemnors had notice of the contempt application and were duly served

Holding

The contemnors, except Ms Hellen Koech, were not duly served with the contempt application as service by email and phone failed to comply with Order 5 Rule 22B and 22C (no delivery receipt annexed), prejudicing the 1st contemnor whose liberty was at stake.

Reasoning

The court examined the affidavit of service of Stephen Shikanda, who claimed service by email and M-Pesa confirmed phone contact and service at the legal office. It found no delivery receipt was annexed as required for electronic service, and the method did not constitute personal service on the contemnors. Given that contempt proceedings carry penal consequences against persons in their personal capacity, strict compliance with service rules was necessary, and its absence deprived the contemnors of the opportunity to be heard.

p. 6
02

Whether service and representation through the Defendant's Head of Legal sufficed

Holding

Service and participation through Hellen Koech, the Legal Manager, did not cure the lack of personal service on the contemnors, especially as the 1st contemnor denied authorizing her to swear affidavits on his behalf.

Reasoning

Although the plaintiff argued that Hellen Koech had the authority of the contemnors to swear a replying affidavit on their behalf, the court held this did not substitute for the required personal service. It noted the contempt proceedings, while directed at the officers in their official capacities, carried penal consequences enforceable personally. The 1st contemnor's express denial of authority to Koech in his further affidavit reinforced that her representation could not bind the individual contemnors.

p. 5
03

Whether the ruling dated 7th March 2024 should be set aside

Holding

Yes. Relying on the court's inherent jurisdiction and the principles in Shah v Mbogo, the court set aside the ruling of 7th March 2024 and granted the contemnors leave to defend the contempt application.

Reasoning

The court invoked its inherent power under Sections 3 and 3A of the Civil Procedure Act and Order 51 Rule 15, which allows setting aside ex parte orders. Following Shah v Mbogo, the discretion to set aside exists to avoid injustice resulting from accident, inadvertence or excusable mistake. Since the contemnors were not duly served and were denied a fair hearing before being found in contempt, justice required setting aside the ruling and allowing them to respond to the contempt application.

p. 6

Legal principles established

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  • Where a party's liberty is at stake in contempt proceedings, service must strictly comply with the prescribed procedure; non-compliance that prejudices the contemnor vitiates the contempt finding.
  • Directors/officers cannot be held personally liable for contempt unless they are served with the order or shown to have personal knowledge of it.
  • Electronic service requires a delivery receipt to be effective under Order 5 Rule 22B.

Court orders

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  1. 1.The orders and the ruling of the court dated 7th March 2024 are set aside and the contemnors are granted leave to defend and respond to the contempt application dated 9th November 2023.
  2. 2.The costs of the application to be in the course.

Authorities

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Legislation

  • Civil Procedure ActSection 3
  • Civil Procedure ActSection 3A
  • Civil Procedure RulesOrder 40 Rule 4
  • Civil Procedure RulesOrder 51 Rule 1
  • Civil Procedure RulesOrder 51 Rule 15
  • Civil Procedure RulesOrder 5 Rule 22B
  • Civil Procedure RulesOrder 5 Rule 22C

Cases cited (2)

  • Shah v Mbogo
    [1967] EA 116
  • African Management Communication International Limited vs Joseph Mathenge Mugo & another
    [2013] eKLR
Jurisdiction invoked
Sections 3 and 3A of the Civil Procedure Act (inherent/special jurisdiction) and Order 40 Rule 4 and 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, "Hasmo Agencies Limited v National Social Security Fund; Koros & 3 others (Contemnor) (Land Case E052 of 2023) [2024] KEELC 6528 (KLR)", Case Analysis (2024). Not stated in the excerpt provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/6528/eng@2024-10-03

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