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ELRCPartially AllowedCause (Mombasa) – committal motion dated 31 July 2013 and Respondent's motion dated 23 September 2013 (arising from judgment of 28 June 2013)· [2014] KEELRC 985 (KLR)

Kenya Long Distance Truck Drivers & Allied Workers Union v Kyoga Hauliers Limited [2014] KEELRC 985 (KLR)

Industrial Court of Kenya (now Employment and Labour Relations Court)
16 May 2014
2,621 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenyan courts can summon company directors to face civil jail for ignoring employment court orders, and companies cannot dodge enforcement by claiming they were never served.

What this practically means

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Executive summary

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Following a judgment of 28 June 2013 ordering Kyoga Hauliers Ltd to grant the Union recognition and to deduct and remit members' subscriptions, the Union moved under section 13 of the Industrial Court Act seeking committal of the company's directors to civil jail for disobeying the decree. The Respondent, served with the contempt application, filed its own motion seeking stay of execution, setting aside of the judgment and leave to defend, contending it was never served with summons or the decree and that a draft Response raised triable issues, including that the Union had not attained the recognition threshold. The Court found as a fact, on the process server's uncontradicted evidence, that the decree was served on 5 July 2013 through the Respondent's premises. It held that a juristic person cannot be jailed, and that the proper course was to summon the directors, including Ismail Gulam, to appear on 30 May 2014 to show cause why they should not be committed for contempt. On the Respondent's motion, the Court found the Respondent had been notified of mentions and hearings at its own address and had been served with a hearing notice on its Legal Clerk. The Conciliator's findings that the Union enjoyed 61.38% membership and faced no rival union, the Court held, should not easily be disturbed, and Article 41 rights of workers to organise could not be frustrated by abuse of court process. The Union's motion succeeded; the Respondent's motion was dismissed, with costs of both applications to the Union. Delivered at Mombasa on 16 May 2014 by Radido Stephen, Judge.

Key legal issues

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01

Whether the Respondent was served with the decree

Holding

The Court found, on a balance of probabilities, that the Respondent was served with the decree on 5 July 2013 and was aware of it

Reasoning

The process server deposed that a security guard took the decree inside and returned saying a Legal Officer, Hamadi, had accepted it but declined to endorse a copy. Neither Hamadi nor the security guard filed an affidavit dealing first-hand with these events. The Respondent's director's affidavit did not address the guard taking the decree inside. Weighing the disputed depositions, the Court accepted service was effected and found the Respondent in contempt for ignoring the decree.

p. 3
02

Whether directors are the proper parties for committal where the judgment debtor is a company

Holding

Committal cannot lie against the company itself; the proper course is to summon its directors to show cause why they should not be committed to civil jail

Reasoning

The Cause and decree were directed at a juristic person, which cannot be imprisoned. Drawing on section 38 of the Civil Procedure Act and Order 22 rule 28 of the Civil Procedure Rules, the Court held that enforcement against a corporation must proceed through the natural persons behind it, and directed the directors, including Ismail Gulam, to appear and show cause.

p. 4
03

Whether the judgment/decree should be set aside for want of service and triable issues

Holding

The application failed; the Respondent was aware of the Cause, was served with mention and hearing notices, and no triable issues or irreparable loss were established

Reasoning

The Respondent's own address was on record and the Deputy Registrar had notified it of the mention; affidavits of service showed service of the hearing notice on its Legal Clerk. The Conciliator had found 61.38% union membership and no rival union after inspection, findings the Court held should not be lightly disturbed. No loss would flow from deducting and remitting dues, which come solely from employees.

p. 4

Legal principles established

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  • A juristic person cannot be imprisoned for contempt; committal must be directed at natural persons such as its directors, who may be summoned to show cause
  • Where a party disputes service but the process server's evidence is not first-hand contradicted by the alleged recipient, the court may find on a balance of probabilities that service was effected
  • Factual findings of County Labour Officers/Conciliators should not be easily disturbed by courts
  • Courts will not allow parties to abuse court process to frustrate constitutionally guaranteed rights of workers to organise

Court orders

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  1. 1.The Claimant's committal motion succeeded; the directors of the Respondent, including Mr. Ismail Gulam, were summoned to personally appear before the Court on 30 May 2014 to show cause why they should not be committed to civil jail for contempt of court
  2. 2.The Respondent's motion seeking stay of execution, setting aside of the judgment/decree and leave to defend was dismissed
  3. 3.The Union to have costs of both applications

Authorities

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Legislation

  • Industrial Court Actsection 13
  • Industrial Court (Procedure) Rules, 2010rules 29(4), 31(1)
  • Civil Procedure Actsection 38
  • Civil Procedure RulesOrder 22 rule 28
  • Constitution of Kenya, 2010Article 41
  • Employment Actnot specified
  • Labour Institutions Actnot specified
  • Labour Relations Actnot specified
Jurisdiction invoked
Section 13 of the Industrial Court Act; rules 29(4) and 31(1) of the Industrial Court (Procedure) Rules, 2010; sections 38 and Order 22 rule 28 of the Civil Procedure Act/Rules for enforcement of decrees

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, "Kenya Long Distance Truck Drivers & Allied Workers Union v Kyoga Hauliers Limited [2014] KEELRC 985 (KLR)", Case Analysis (2014). Cause (Mombasa) – committal motion dated 31 July 2013 and Respondent's motion dated 23 September 2013 (arising from judgment of 28 June 2013). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/985/eng@2014-05-16

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