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ELCDismissedNot stated in the judgment as provided· [2025] KEELC 6484 (KLR)

Josvir Traders & Agencies Limited v Kiruni & 2 others; Wambu t/a Chador Auctioneers (Respondent) (Environment and Land Case 174 of 2018) [2025] KEELC 6484 (KLR)

High Court of Kenya
29 September 2025
2,258 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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The High Court dismissed a bid to force an auctioneer to release Kshs. 6 million in fees, ruling fee disputes must go through formal assessment.

What this practically means

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Executive summary

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The Decree Holder applicant moved the High Court by Notice of Motion dated 21st February 2025 seeking an order that Eliud Chai Wambu of Chador Auctioneers release Kshs. 6,000,000 withheld out of Kshs. 38,000,000 recovered in execution of decrees totalling over Kshs. 340 million, plus costs. The Respondent conceded recovery and partial remittance (Kshs. 32,000,000) but justified the retention as auctioneer's fees, denied impropriety, and objected that the Applicant had lodged a parallel complaint before the Auctioneers Licensing Board in Disciplinary Cause No. 7 of 2025 on the same allegations, amounting to forum shopping. Justice J. M. Onyango framed a single issue: whether the Applicant was properly before the Court. Applying Rules 7, 19 and 55 of the Auctioneers Rules, 1997, the court held that disputes over the quantum of auctioneer's fees must be assessed by the Registrar, a Magistrate or the Board, and that permitting direct release applications would substitute judicial intervention for the prescribed procedure. The court emphasized that this procedural shield does not absolve the auctioneer of the fiduciary duty under Rule 19 to hold client monies in a clients' account subject only to lawful deductions. Invoking the exhaustion doctrine as articulated in Speaker of National Assembly v Karume and Ramogi, the court also held that concurrent pursuit of the same grievance before the Board and the High Court could not be countenanced. The application was dismissed with no order as to costs, without prejudice to the Applicant's right to seek assessment under Rule 55.

Key legal issues

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01

Whether the High Court is the proper forum for a decree holder seeking release of monies retained by an auctioneer as fees

Holding

The application was not properly before the court; Rule 55 requires such fee disputes to be resolved by taxation or assessment before the Registrar, a Magistrate or the Auctioneers Licensing Board.

Reasoning

The court held that Rule 55 of the Auctioneers Rules deliberately channels disputes over auctioneers' fees to assessment by the Registrar, Magistrate or Board. Entertaining an application for direct release of funds would substitute the prescribed procedure with judicial intervention. The court distinguished between the forum for disputing fees and the auctioneer's continuing fiduciary duty under Rule 19 to safeguard client monies.

p. 5
02

Whether concurrent proceedings before the Auctioneers Licensing Board and the High Court on the same allegations could be maintained

Holding

No; the duplication of proceedings on indistinguishable allegations offended the exhaustion doctrine and judicial order.

Reasoning

The Applicant had already lodged a complaint before the Auctioneers Licensing Board in Disciplinary Cause No. 7 of 2025 on substantially the same allegations. The court held that permitting concurrent proceedings would multiply litigation and undermine the constitutional preference for specialized dispute-resolution mechanisms, invoking the exhaustion doctrine as affirmed in Karume and Ramogi.

p. 5

Legal principles established

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  • Where a statute prescribes a specific procedure for redress of a grievance, that procedure must be strictly followed and exhausted before resorting to the court
  • Disputes as to the quantum of auctioneer's fees must be assessed by the Registrar, Magistrate or the Board under Rule 55, and unilateral retention is not permitted
  • An auctioneer remains under a fiduciary duty under Rule 19 to hold client monies in a clients' account and may only deduct fees properly chargeable

Court orders

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  1. 1.The application dated 21st February 2025 is dismissed
  2. 2.No order as to costs
  3. 3.The dismissal is without prejudice to the Applicant's right to seek redress in the proper forum under Rule 55 of the Auctioneers Rules

Authorities

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Legislation

  • Auctioneers Rules, 1997Rule 7
  • Auctioneers Rules, 1997Rule 19
  • Auctioneers Rules, 1997Rule 55
  • Civil Procedure Rules (Cap 21, Sub. Leg.)Definition of Registrar

Cases cited (5)

  • Sitienei & another v Lang'at t/a Kaloto Auctioneers
    [2023] KEELRC 2815 (KLR)
  • Geofirey Chege Kirundi & Lucy Wamaitha Chege v Josvir Traders & Agencies Ltd
    [2023] eKLR
  • Autoports Freight Terminals Limited v Opar t/a Skypac Consult Auctioneers
    [2025] KEHC 1683 (KLR)
  • Speaker of the National Assembly v Karume
    [1992] KLR 21
  • William Odhiambo Ramogi & 3 others v Attorney General & 4 others
    [2020] eKLR
Jurisdiction invoked
Inherent jurisdiction of the High Court in execution/decree proceedings (Auctioneers Act and Auctioneers Rules, 1997 framework); no specific constitutional or statutory provision invoked

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, "Josvir Traders & Agencies Limited v Kiruni & 2 others; Wambu t/a Chador Auctioneers (Respondent) (Environment and Land Case 174 of 2018) [2025] KEELC 6484 (KLR)", Case Analysis (2025). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/6484/eng@2025-09-29

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