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ELRCDismissedApplication dated 12th May 2014 (Cause not stated)· [2014] KEELRC 227 (KLR)

Paul Irungu Mwangi & 32 others v Orthodox Archbishopric of Kenya & Irinoupolis & another [2014] KEELRC 227 (KLR)

Industrial Court of Kenya (now Employment and Labour Relations Court)
17 October 2014
MNMathews N. Nduma
1,048 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employment court refused to stop an employer's SACCO deductions because the employer had itself failed to remit workers' statutory dues.

What this practically means

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Executive summary

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This was a ruling of the Industrial Court (Nairobi) delivered by the Principal Judge, Mathews N. Nduma, on the Respondent/Applicant employer's Notice of Motion dated 12th May 2014 seeking orders in terms of prayers 1, 2 and 3, following interim orders of 16th May 2014 that had injuncted CFC Stanbic Bank Kenya Limited and Barclays Bank Kenya Limited from paying monies from the employer's accounts to the Interested Party, Miliki Savings and Credit Society Limited, on behalf of 32 Claimants. The Interested Party had earlier been joined to the suit and sought an order restraining the employer from transferring salary deductions except through it; it subsequently moved to stay and set aside the interim injunction. The Claimant and Interested Party filed grounds of opposition arguing the application was beyond the Court's jurisdiction and an abuse of process. The Court framed two issues: its jurisdiction and whether the applicant met the prerequisites for an interim injunction. On jurisdiction, applying Article 162(2) of the Constitution and Section 12 of the Industrial Court Act 2012, it held the dispute over non-remittance of deductions (NSSF, NHIF, SACCO dues, NITA, KRA and union dues) fell within its exclusive original and appellate jurisdiction. Applying Giella v Cassman Brown, the Court held the employer's failure to remit statutory dues tainted its hands, so no prima facie case was established, and no irreparable harm would flow from remitting monies held in trust, quantum being the only dispute. The application was dismissed with costs in the cause and the main suit allowed to take its normal course.

Key legal issues

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01

Jurisdiction of the Industrial Court over disputes on non-remittance of salaries and statutory deductions

Holding

The Court has exclusive original and appellate jurisdiction; the preliminary objection was not upheld.

Reasoning

Article 162(2) of the Constitution read with Section 12 of the Industrial Court Act 2012 confers exclusive original and appellate jurisdiction over employment and labour relations disputes. The dispute concerned non-remittance of monies deducted from employees' salaries to NSSF, NHIF, SACCO, KRA and union dues, all matters relating to employment and labour relations under Section 12(1). The objection that the matter was beyond the Court's jurisdiction and an abuse of process therefore failed.

p. 3
02

Whether the Applicant met the prerequisites for an interim injunction under Giella v Cassman Brown

Holding

The Applicant failed all relevant limbs - no prima facie case and no irreparable harm.

Reasoning

Applying the Giella v Cassman Brown conditions, the Court found the employer had not established a prima facie case with probability of success because its own failure to remit deducted monies tainted its hands, invoking the clean hands doctrine. The Court also considered the Applicant's duty of disclosure at the ex parte stage. Further, the employer would suffer no irreparable harm from remitting funds held in trust, the only dispute being quantum.

p. 4

Legal principles established

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  • An interim injunction is an equitable relief and he who comes to equity must come with clean hands
  • An applicant for interim relief bears a duty to disclose material facts at the ex parte stage
  • The Industrial Court has exclusive original and appellate jurisdiction over employment and labour relations disputes including non-remittance of salaries and statutory deductions

Court orders

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  1. 1.The application dated 12th May 2014 is dismissed
  2. 2.Costs awarded against the Applicant, costs in the cause
  3. 3.The main suit will take its normal course
Jurisdiction invoked
Article 162(2) of the Constitution as read with Section 12 of the Industrial Court Act, 2012

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, "Paul Irungu Mwangi & 32 others v Orthodox Archbishopric of Kenya & Irinoupolis & another [2014] KEELRC 227 (KLR)", Case Analysis (2014). Application dated 12th May 2014 (Cause not stated). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/227/eng@2014-10-17

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