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ELRCPartially AllowedIndustrial Cause No. 1896 of 2013· [2014] KEELRC 824 (KLR)

National Union of Water & Sewage Employees v Paul Njagi Michuki & 11 others [2014] KEELRC 824 (KLR)

Industrial Court of Kenya
4 February 2014
3,516 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This interlocutory ruling of the Industrial Court at Nairobi dealt with two competing applications in Industrial Cause No. 1896 of 2013: the claimant union's Notice of Motion dated 27th November 2013 and the 6th respondent's application dated 29th November 2013 seeking a stay of proceedings pending Cause No. 755 of 2013 or, in the alternative, consolidation of the two suits. The dispute concerned a leadership struggle within the National Union of Water and Sewerage Employees, with the claimant's officials (led by Elijah Otieno Awach) alleging that the respondents refused to surrender the union's books of accounts, office premises and control of a bank account at the National Bank, exposing the union and its 8,000 members to deregistration for failure to file annual returns. The respondents countered that the claimant's officials had 'sneaked' a fraudulent consent into Cause No. 513(N) of 2009 and that parallel litigation (Causes 513(N) of 2009 and 755 of 2013, including contempt proceedings) should be resolved first. The court found no basis for stay or consolidation: the parties and orders sought in the three suits were fundamentally different, no injustice was demonstrated, and the claimant opposed consolidation. Relying on the unchallenged Registrar of Trade Unions extract of 2nd May 2013, the court accepted the claimant's list of registered officials and, invoking sections 21, 42 and 43 of the Labour Relations Act, allowed the claimant's application in its entirety, directing surrender of union property, restraint from purporting to be officials, and bank access to enable filing of annual returns.

Key legal issues

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01

Whether stay of proceedings and consolidation with Cause No. 755 of 2013 was warranted

Holding

The stay and consolidation applications were dismissed; the suits involve different parties, the memoranda of claims were not attached to show similarity, and consolidation was opposed by the claimant

Reasoning

Rule 23 of the Industrial Court Procedure Rules permits consolidation where a common question of fact or law arises or where it is practical and appropriate to proceed simultaneously. The parties in the three suits are fundamentally different, no injustice was demonstrated, and the claimant opposed consolidation. Allegations of fraud were unsupported by tangible evidence and no police report was made.

p. 5
02

Whether the claimant's application for surrender of books, restraint from purporting to be officials and access to the bank account should be granted

Holding

The application was allowed in full; the Registrar of Trade Unions extract dated 2nd May 2013 identified the current registered officials and was unchallenged

Reasoning

The respondents' replying affidavits and submissions did not effectively respond to the issues raised. The Registrar's extract of 2nd May 2013 identifying the current officials was undisputed and was taken as the official record. Registered officials under sections 21, 42 and 43 of the Labour Relations Act have a duty to manage the union, render accounts and file annual returns; denying them access to the union's property and account would cause deregistration and injustice to 8000 members.

p. 6

Legal principles established

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  • Consolidation of suits requires a common question of fact or law or that it is practical and appropriate to proceed simultaneously; where one party is totally opposed, the court must assess the need for consolidation
  • The Registrar of Trade Unions' record of registered officials, if unchallenged, is the true position of the current status of a trade union
  • Registered officials of a trade union have a statutory duty to render accounts and file annual returns; failure would render the union ineffective and jeopardise members' interests

Court orders

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  1. 1.Dismissal of the 6th respondent's application dated 29th November 2013 in its entirety
  2. 2.The 1st to 12th respondents directed to hand over or surrender all books of accounts and any other property of the claimant Trade Union pending the hearing of the claim
  3. 3.The 1st to 12th respondents to forthwith cease representing themselves as the registered officials of the claimant Trade Union pending the hearing of the claim
  4. 4.The 13th respondent to allow the claimant Trade Union officials access to account No. 01020060636400 held at National Bank, Harambee Avenue, Nairobi to enable them file annual returns with the Registrar of Trade Unions
Jurisdiction invoked
Sections 11 and 20 of the Industrial Court Act; Industrial Court Procedure Rules Rules 16-19, 23, 27

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, "National Union of Water & Sewage Employees v Paul Njagi Michuki & 11 others [2014] KEELRC 824 (KLR)", Case Analysis (2014). Industrial Cause No. 1896 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/824/eng@2014-02-04

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