Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELCDismissedNot stated in judgment· [2024] KEELC 7207 (KLR)

Bakamoyo Limited v Nathoo & 3 others (Environment & Land Case 43 of 2021) [2024] KEELC 7207 (KLR)

Environment and Land Court
31 October 2024
2,894 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

#

What this practically means

#

Executive summary

#
The 2nd Defendant, John Barasa Fwamba (suing on behalf of the estate of Hadi Bahadurali Hasham), raised a preliminary objection dated 6th August 2024 seeking striking out of the Plaintiff company's land suit on the ground that no board resolution authorized the filing of the suit, the appointment of Mohamed Ahmed Anwar to sign pleadings, or the instruction of the Plaintiff's advocates, contrary to the Companies Act, 2015 and Order 4 Rule 1(4) of the Civil Procedure Rules, 2010. The court framed three issues: the threshold of a preliminary objection, the merit of the objection on lack of board resolution, and costs. Applying Mukisa Biscuits and related authorities, it found the objection raised pure points of law and was properly before the court. On the merits, however, the court held that a letter of authority under seal, filed with the plaint, authorized Mr. Anwar to sign the verifying affidavit; further, following Leo Investments and Spire Bank, absence of a board resolution is not fatal and may be cured at any time before hearing, since Article 159(2)(d) of the Constitution enjoins courts against undue regard to procedural technicalities. The objection was overruled with costs to the Plaintiff. The court, suo motu, ordered the Plaintiff to file a board resolution within 14 days, directed a pre-trial conference mention on 19th February 2025 and hearing on 20th March 2025.

Key legal issues

#
01

Whether the objection met the threshold of a preliminary objection

Holding

It did, as it raised pure points of law regarding compliance with company law requirements under Order 4 Rule 1(4) of the Civil Procedure Rules, 2010

Reasoning

The court surveyed the classic authorities (Mukisa Biscuits, Nitin Properties, United Insurance v Odera) establishing that a preliminary objection must be a pure point of law argued on the assumption that all facts pleaded by the other side are correct. It found that whether the suit complied with Order 4 Rule 1(4) raised a pure point of law, so the objection was properly before the court for determination on the merits.

p. 3
02

Whether the suit was fatally defective for want of a board resolution

Holding

No; the objection was dismissed. The verifying affidavit was sworn by an authorized officer, and any defect in the form of authority is curable before hearing

Reasoning

The plaint filed on 20th March 2021 was accompanied by a letter of authority under the company's seal appointing Mr. Mohamed Ahmed Anwar to execute documents, including verifying affidavits. Although not in the form of a board resolution, it evidenced directorial authorization. Relying on Leo Investments and Spire Bank, the court held Order 4 Rule 1(4) was not meant to be a procedural technicality to strike out suits, and Article 159(2)(d) enjoins courts to disregard technicalities. The court nonetheless ordered the Plaintiff to file a board resolution within 14 days.

p. 4
03

Who should bear the costs of the preliminary objection

Holding

Costs of the preliminary objection were awarded to the Plaintiff, the successful party

Reasoning

Applying Section 27(1) of the Civil Procedure Act and the principle that costs follow the event, the court noted the 2nd Defendant had not succeeded in the objection. The successful party is entitled to costs unless there are compelling reasons to depart from that rule, and none existed here.

p. 6

Legal principles established

#
  • A preliminary objection must be raised on a pure point of law and cannot be raised where facts have to be ascertained
  • Failure to file a board resolution authorizing the filing of a suit by a company does not invalidate the suit; the resolution may be filed at any time before hearing
  • Courts should not elevate procedural technicalities over the dictates of substantive justice

Court orders

#
  1. 1.The Notice of Preliminary Objection dated 6th August, 2024 is found unmeritorious and is overruled
  2. 2.Suo motu order directing the Plaintiff to file a resolution by its board within 14 days of the ruling
  3. 3.Mention on 19th February, 2025 for pre-trial conference under Order 11 of the Civil Procedure Rules, 2010, thereafter hearing on 20th March, 2025
  4. 4.Costs of the Notice of Preliminary Objection awarded to the Plaintiff
Jurisdiction invoked
Environment and Land Court Act, No. 19 of 2011 (original jurisdiction over the land dispute; ruling on preliminary objection)

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Bakamoyo Limited v Nathoo & 3 others (Environment & Land Case 43 of 2021) [2024] KEELC 7207 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/7207/eng@2024-10-31

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