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ELRCPartially AllowedCause No 414 of 2013· [2018] KEELRC 1195 (KLR)

Transport Workers Union v Lochab Brothers Limited [2018] KEELRC 1195 (KLR)

Employment and Labour Relations Court
30 April 2018
2,037 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 ruling of the Employment and Labour Relations Court at Nakuru (Mbaru J) determined two applications by the respondent, Lochab Brothers Limited, dated 21st December 2017 and 4th January 2018, seeking to set aside execution proceedings mounted by the claimant union pursuant to a judgment of 28th March 2014 as reviewed on 30th September 2016, awarding the claimant Kshs.2,655,400.00. The respondent argued that execution was irregular: no amended decree was extracted after the review; more than one year had lapsed since judgment so a notice to show cause was required under Order 22 Rule 18 of the Civil Procedure Rules, 2010; the attached assets were neither proclaimed nor was leave granted under the Auctioneers Rules, 1997; and the party and party bill was drawn and taxed in person despite an advocate being on record, without proper notice. The claimant countered that stay orders had lapsed on the respondent's failure to deposit the decretal sum, and that the respondent had been served with the bill of costs. Applying Rule 32(2) of the ELRC (Procedure) Rules, 2016, the court found the claimant's admission that execution proceeded without an amended decree fatal; relying on the ex parte Kenya Commercial Bank authority, it held execution without the Order 22 Rule 18 notice unprocedural and unlawful, and observed that the warrants of attachment were unsigned and unsealed. The court allowed both applications in part: execution proceedings were set aside, taxation to commence afresh, and the attached motor vehicles and property released, save that the respondent was to deposit Kshs.2,655,400.00 within 14 days. The prayer to fix the dormant application of 2nd November 2016 for hearing was declined, costs being awarded to the claimant.

Key legal issues

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01

Regularity of execution without an amended decree and notice to show cause

Holding

The execution proceedings were irregular and a nullity in part because the claimant's own admission established that execution proceeded without an amended decree and without the notice to show cause required by Order 22 Rule 18

Reasoning

Judgment was entered on 28 March 2014 and reviewed on 30 September 2016. After the review, an amended decree and notice to the respondent ought to have issued before execution. The claimant admitted in submissions that execution proceeded without an amended decree, casting doubt on the entire process. The court relied on Order 22 Rule 18 and the ex parte Kenya Commercial Bank authority to hold the process unprocedural and unlawful.

p. 3
02

Irregular warrants of attachment

Holding

Even though warrants of sale were signed and sealed, the warrants of attachment were not, making the motions of attachment baseless

Reasoning

Relying on Republic v Commissioner of Police & 2 others ex parte Kenya Commercial Bank, the court noted that without the requisite notice, or dispensation thereof, execution is unprocedural and unlawful. On perusal of the court file, the warrants of attachment were not signed and sealed even though the warrants of sale were. The execution proceedings were therefore unjustified and the attachments had no basis.

p. 3
03

Respondent's non-compliance with deposit orders

Holding

Although execution was flawed, the respondent's non-compliance with the 8 November 2016 and 5 January 2018 orders to deposit the decretal sum could not be encouraged, and set-aside was conditioned on deposit of the reviewed judgment sum within 14 days

Reasoning

The court balanced the irregularity of execution against the respondent's failure to comply with conditional stay orders requiring deposit of the decretal sum. To ensure completeness of the process and a fair footing between the parties, release of the attached vehicles and fresh taxation were granted only on condition that the respondent deposit the reviewed judgment sum of Kshs.2,655,400.00 within fourteen days.

p. 3
04

Duty to prosecute a pending application

Holding

The respondent could not enlist the claimant's motion to have its own dormant application of 2nd November 2016 fixed for hearing; the duty to move the court lies with the party who filed the application

Reasoning

The application dated 2nd November 2016 had been pending since 8 November 2016. The court found no effort by the respondent to urge it. Asking for a hearing date through the claimant's application conflated the issues. The court therefore did not grant that prayer.

p. 3

Legal principles established

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  • Where a decree or order is more than one year old, a notice to show cause why the decree should not be executed must issue before attachment under Order 22 Rule 18 of the Civil Procedure Rules
  • Following a review of a judgment, an amended decree must be extracted and notice issued before execution can lawfully proceed; execution without an amended decree is flawed

Court orders

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  1. 1.The execution proceedings by the claimant are set aside
  2. 2.The process of taxation shall commence afresh
  3. 3.The attached motor vehicle registration numbers KAL 670K and KAD 664G and property of the respondent shall be released
  4. 4.The respondent shall deposit with the court the judgement amount in terms of orders of 30th September 2016, being Kshs.2,655,400.00, within 14 days
  5. 5.Costs awarded to the claimant

Authorities

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Legislation

  • Civil Procedure Rules, 2010Order 22 Rule 18
  • Auctioneers Rules, 1997Not specified
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rule 32(2)
  • Advocates Remuneration OrderNot specified

Cases cited (3)

  • Mini Bakeries (K) Ltd versus George Ondieki Nyamanga
    [2014] eKLR
  • Philip Kiptoo Chemwolo & Another versus Augustine Kudende
    [1986] KLR
  • Republic v Commissioner of Police & 2 others ex parte Kenya Commercial Bank
    [2014] eKLR
Jurisdiction invoked
Rule 32(2) of the Employment and Labour Relations Court (Procedure) Rules, 2016 permitting use of the Civil Procedure Rules on execution 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, "Transport Workers Union v Lochab Brothers Limited [2018] KEELRC 1195 (KLR)", Case Analysis (2018). Cause No 414 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1195/eng@2018-04-30

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