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ELRCPartially AllowedNotice of Motion dated 10th December 2012 (Industrial Cause)· [2013] KEELRC 623 (KLR)

Benard Nyanyuki Nyakina & 301 others v Polysack Limited [2013] KEELRC 623 (KLR)

Industrial Court of Kenya
2 July 2013
3,476 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Industrial Court set aside contempt sanctions against an employer because the court orders were never properly signed and personally served in time.

What this practically means

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Executive summary

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The employer, through a Notice of Motion dated 10th December 2012 under Section 16 of the Industrial Court Act and Rule 32 of the Industrial Court (Procedure) Rules, sought stay of the orders of 26th November 2012 and their variation, review or setting aside, together with an injunction restraining 69 summarily dismissed employees from accessing its premises. The applicant argued that the employees had been dismissed on 19th September 2012, before the orders of 20th September 2012 and 5th October 2012 were issued, that contempt cannot attach retrospectively or in anticipation of orders, and that the orders were never personally served on the Managing Director, Diamond Lalji. The claimants objected that the court was functus officio, having already punished the contemnor, and that the employees had resumed duties though dues remained unpaid. The court first confirmed its inherent jurisdiction to review or set aside its own orders under Section 26 of the Labour Institutions Act read with Section 16 of the Industrial Court Act. It then noted the contested orders were only signed by the Registrar on 25th September and 11th October 2012 respectively, so contempt could only issue after those dates; the affidavit of service claiming earlier personal service could not stand. Relying on the principle that contempt proceedings are akin to criminal proceedings requiring strict procedure and proof of personal service, the court dismissed the claimants' objections, set aside the contempt proceedings, orders and sanctions, maintained the employees' access to the premises subject to keeping the peace, directed the main suit to proceed on merit, and awarded costs in the cause. Judgment was delivered on 2nd July 2013 by M. Mbaru, Judge.

Key legal issues

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01

Jurisdiction to review own orders

Holding

The court has inherent jurisdiction to review or set aside its own orders, including contempt orders, under Section 26 of the Labour Institutions Act and Section 16 of the Industrial Court Act

Reasoning

The claimants objected that the court was functus officio having punished the contemnor. The court held the Constitution confers wide jurisdiction on it over labour relations, supplemented by statute and residual inherent jurisdiction, and that applications to set aside or review its own orders fall within that inherent jurisdiction. The objections were dismissed.

p. 4
02

Service of orders as a prerequisite for contempt

Holding

Orders signed and sealed on dates after the alleged contempt could not found a contempt finding; personal service is essential in penal contempt proceedings

Reasoning

The order dated 25th September 2012 was issued on 20th September 2012 and could not take effect before the Registrar signed it; the orders of 5th October 2012 were only signed on 11th October 2012. The affidavit of service claiming personal service of Diamond Lalji before those dates could not stand, rendering the contempt finding unsustainable.

p. 4
03

Standard and procedure in contempt proceedings

Holding

Contempt proceedings being akin to criminal proceedings, the correct procedure must be followed and facts must establish contempt to the required standard

Reasoning

Relying on authorities cited by both parties, the court held that where service is challenged in a matter of penal nature, personal service must be established, the court must not be left speculating, and Rule 24(3) requires contempt proceedings to be bound by applicable written law. A person may lose their liberty, so the ends of justice demand strict compliance.

p. 5

Legal principles established

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  • Contempt proceedings are akin to criminal proceedings and strict compliance with procedure, including proof of personal service, is required
  • Contempt cannot attach to an order before it was officially signed and sealed
  • The court retains inherent power to review or set aside its own orders

Court orders

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  1. 1.The objections by the claimants stand dismissed
  2. 2.The employees granted leeway to unconditionally access the respondent's premises are maintained subject to keeping the peace pending the hearing of the main cause unless otherwise restrained for any other lawful cause
  3. 3.The contempt proceedings, subsequent orders and sanctions are set aside
  4. 4.The hearing of the main suit should proceed on merit to determine all the pending issues
  5. 5.Costs in the cause

Authorities

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Legislation

  • Industrial Court ActSection 16
  • Industrial Court (Procedure) RulesRule 32
  • Industrial Court (Procedure) RulesRule 24(3)
  • Labour Institutions ActSection 26
  • Constitution of KenyaArticle 41
  • Constitution of KenyaArticle 165(5)
  • Evidence Actgeneral

Cases cited (2)

  • Trust Bank limited versus Shanzu Villas limited & 3 Others
    Civil Case No. 875 of 2001
  • Margaret Ogweno okoth verus Gabriel Onyango Wade et al
    HCCC No. 44 of 2003
Jurisdiction invoked
Article 41 and Article 165(5) of the Constitution; Section 26 of the Labour Institutions Act read with Section 16 of the Industrial Court Act and Rule 32 of the Industrial Court (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, "Benard Nyanyuki Nyakina & 301 others v Polysack Limited [2013] KEELRC 623 (KLR)", Case Analysis (2013). Notice of Motion dated 10th December 2012 (Industrial Cause). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/623/eng@2013-07-02

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