Paul Abuto Obwon & 61 others v Muhoroni Sugar Company Limited [2018] KEELRC 111 (KLR)
The bottom line
#Kenya's Employment Court struck out 62 employees' compensation claim because they filed it too late — repackaging a contract dispute as a constitutional petition doesn't beat the six-year deadline.
What this practically means
#Executive summary
#Key legal issues
#Limitation of actions in employment/contract claims
The petition, being in substance a contract claim for termination and terminal dues, was filed outside the six-year limitation period and is time barred
The cause of action arose when the Petitioners were placed on unpaid leave, with the claim crystallising at the expiry of the 120 days of unpaid leave. The six-year limitation window under section 4(1) of the Limitation of Actions Act expired around 30 October 2007, yet the Petition was filed in 2012. The court found no justifiable reason for the delay in claiming against the receiver manager.
Use of constitutional petitions to disguise ordinary contract claims
A suit cannot circumvent limitation by being dressed up as a constitutional petition where no constitutional violation is pleaded
The court found that the Petitioners raised no constitutional violations under the erstwhile 1963 Constitution and no transitional justice issues. The decision in Njuguna Githiru was held inapplicable. Reliance was placed on the Devicon decision to hold that courts cannot extend the limitation period for contract claims, whatever the form of the suit.
Jurisdiction
The court lacked jurisdiction to delve into the merits because the claim was time barred
Having determined the preliminary objection on limitation, the court held that the time bar robbed it of jurisdiction to entertain the substantive claim, and struck the petition out without considering the merits of the constructive dismissal and terminal dues allegations.
Legal principles established
#- No court may extend the six-year limitation period for suits founded on contract, and presenting such a claim as a constitutional petition does not evade limitation
- A preliminary objection on limitation must be determined first, as guided by the Mukisa Biscuits decision
Court orders
#- 1.The Petition is struck out for want of jurisdiction
- Jurisdiction invoked
- Jurisdiction of the Employment and Labour Relations Court over employment disputes, defeated by limitation under section 4(1) of the Limitation of Actions Act (Cap 22)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Paul Abuto Obwon & 61 others v Muhoroni Sugar Company Limited [2018] KEELRC 111 (KLR)", Case Analysis (2018). Not stated on the face of the judgment extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/111/eng@2018-12-06
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.