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ELRCDismissedNot stated in extract· [2015] KEELRC 1040 (KLR)

Misheck Kirimi Mwithimbu & 7 others v Liquidator Nkuene Farmers Co-operative Society & 17 others [2015] KEELRC 1040 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
5 June 2015
897 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Employment Court refused to undo a Kshs 53 million judgment because the employers falsely claimed they were never served with court papers.

What this practically means

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Executive summary

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The 5th, 7th, 8th, 9th, 10th, 12th, 14th, 15th, 16th and 17th respondents in a terminal-benefits claim of approximately Kshs. 53,351,491.05 filed a notice of motion dated 21.05.2015 seeking to set aside the court's judgment of 30.09.2014, the consequential decree and all orders flowing from it, and for leave to defend the suit. They argued, through the affidavits of Joseph Kinoti M'rinchuni, that they were never served with summons or notified of the hearing date, that they were condemned unheard in breach of natural justice, and that they would suffer monumental loss. The claimants, through the replying affidavit of Misheck Kirimi Mwithimbu, opposed the motion, relying on an affidavit of service by Joseph Mwangi Advocate showing personal service, the 7th respondent's appearance and defence, and service of the hearing notice on the 7th respondent's advocate. Reviewing its earlier judgment, the court noted unchallenged findings that all defendants except the 7th neither entered appearance nor filed defence, that the 7th filed a defence but skipped the hearing despite notice, and that the claimants' terminal benefits had been computed, acknowledged by the liquidator and partially paid. The court found the application was based on misleading facts about non-service, that the prayer to defend was misconceived as regards the 7th respondent, and that no serious issue justified reopening the suit. The application was dismissed with costs.

Key legal issues

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01

Service of summons and hearing notice

Holding

The court found that all respondents, including the applicants, were served with summons to enter appearance but chose not to oppose the suit, except the 7th respondent which filed a defence but failed to attend the hearing despite service of the hearing notice on its advocate.

Reasoning

The court revisited its earlier judgment, which had found that all defendants except the 7th neither entered appearance nor filed defence, and that the 7th, though served with a hearing notice, did not attend. Those findings had not been set aside on review, and no material before the court warranted a different finding. The application's assertion of non-service was therefore misleading.

p. 3
02

Existence of a serious defence justifying reopening the suit

Holding

No serious issue existed that would justify reopening the suit, since the claimants' terminal benefits claim had been acknowledged by the liquidator and partially settled.

Reasoning

The judgment under attack had found there was no dispute the plaintiffs were to be paid terminal benefits, that these had been computed and partly paid, and that the claim had been acknowledged by the liquidator. Those findings stood. Given the acknowledged claim, the applicants had no arguable defence, so leave to defend and setting aside of the judgment were refused.

p. 3

Legal principles established

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  • A party seeking to set aside an interlocutory judgment must establish a valid and just reason; an application founded on misleading facts about service cannot succeed, particularly where the underlying claim was acknowledged by the liquidator and partially settled.

Court orders

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  1. 1.The notice of motion filed on 21.05.2015 seeking to set aside the judgment dated 30.09.2014 and for leave to defend the suit is dismissed
  2. 2.Costs of the application awarded to the claimants

Authorities

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Legislation

  • Constitution of KenyaArticles 25(c), 50(1), 159, 162(2)(a)
  • Civil Procedure Act, Cap 21Sections 1A, 1B, 3A, 63(c) and (e)
  • Civil Procedure Rules, 2010Order 10 Rule 11; Order 51 Rules 1, 3 and 4
  • Industrial Court Act, No. 20 of 2011Not specified
  • Labour Institutions Act, No. 12 of 2007Not specified
Jurisdiction invoked
Articles 25(c), 50(1), 159 and 162(2)(a) of the Constitution of Kenya; Industrial Court Act, No. 20 of 2011; Labour Institutions Act, No. 12 of 2007

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, "Misheck Kirimi Mwithimbu & 7 others v Liquidator Nkuene Farmers Co-operative Society & 17 others [2015] KEELRC 1040 (KLR)", Case Analysis (2015). Not stated in extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1040/eng@2015-06-05

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