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ELRCOtherCause No 34 of 2012· [2019] KEELRC 49 (KLR)

George Kaniaru v Olive Gardens Limited [2019] KEELRC 49 (KLR)

Employment and Labour Relations Court
9 December 2019
1,228 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~5 min to read original · ~4 min brief

The bottom line

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A Kenyan court sent a dispute over Kshs. 911,377 in decree payments and auctioneer fees to taxation, pausing all execution against the hotel in the meantime.

What this practically means

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Executive summary

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This was a Notice of Motion dated 27th August 2019 filed by the judgment debtor, identified in the ruling as the Respondent/Applicant (Olive Gardens Hotel, an operator of the Olive Gardens Hotel), seeking stay of execution, an injunction restraining the decree holder from interfering with its assets, a declaration that the Kshs. 911,377.00 it paid constituted full settlement of the decree and auctioneer's charges, and lifting of a proclamation levied on 6th August 2019. The application, supported by an affidavit of Kimani Macharia (Finance Manager and Internal Auditor), contended that the auctioneer's fees of Kshs. 143,000 were grossly exaggerated relative to Rule 55 and the Fourth Schedule of the Auctioneers Rules (1997), and that the debtor had overpaid. The decree holder's licensed auctioneer, Jovan Humprey Kariuki, replied that fees had been agreed at Kshs. 95,000 and later at Kshs. 40,000 for collection, that installment agreements had been breached repeatedly, and that a balance of Kshs. 80,000 remained; he urged taxation of his bill. The Applicant relied on section 34(1) of the Civil Procedure Act, Orders 21 and 22 of the Civil Procedure Rules, and two 2016 eKLR authorities on payment into court and cessation of interest. Only the Applicant filed submissions. Lady Justice Hellen Wasilwa declined to adjudicate the competing accounts on the affidavits, holding the dispute could only be resolved through taxation, referred the matter to the Deputy Registrar for further directions and consideration, and granted stay of execution pending that determination. No costs order was made.

Key legal issues

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01

Whether the decretal sum and auctioneer's charges were fully settled

Holding

The Court did not decide the question on the merits; it directed that the dispute be resolved through taxation by the Deputy Registrar.

Reasoning

The Judgment Debtor claimed it had overpaid, contending the auctioneer's fees under Rule 55 and the Fourth Schedule of the Auctioneers Rules (1997) should have been about Kshs. 52,380.10. The auctioneer maintained a balance of Kshs. 80,000 remained and invited taxation. Faced with competing accounts of installment payments, agreed fees and fresh proclamations, the Court declined to adjudicate the sums on the affidavits and referred the question to the taxing master, staying execution in the interim.

p. 2
02

Whether the Court had jurisdiction to entertain the application

Holding

Jurisdiction was asserted pursuant to section 34(1) of the Civil Procedure Act as a question relating to the discharge of the decree; the Court proceeded on that basis without contradiction.

Reasoning

The Applicant submitted that under section 34(1) the Court had jurisdiction to determine questions arising on the discharge of the decree, and relied on Order 21 Rule 1 and Order 22 Rule 1 of the Civil Procedure Rules on payment of money under a decree. The Court did not rule expressly on the jurisdictional question but considered the application, ultimately referring the quantification dispute to taxation.

p. 2

Legal principles established

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  • Where the parties dispute the amount paid against a decree and the auctioneer's charges, the proper forum is taxation before the taxing master rather than determination on affidavit in a stay application.

Court orders

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  1. 1.The matter referred to the Deputy Registrar for further directions and consideration (taxation of the auctioneer's bill to determine what is paid and what, if anything, is owing)
  2. 2.Stay of execution pending determination by the Deputy Registrar

Authorities

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Legislation

  • Civil Procedure Act (referred to by the Applicant as 'section 34 (1) of the Civil Procedure Rules')Section 34(1)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure RulesOrder 22 Rule 1
  • Auctioneers Rules (1997)Rule 55 and the Fourth Schedule

Cases cited (2)

  • Republic v Teachers Service Commission & another Ex parte William Wairagu Muigia
    [2016] eKLR
  • Odhiambo Owiti Company Advocates v Standard Assurance (K) Limited & 3 others
    [2016] eKLR
Jurisdiction invoked
Section 34(1) of the Civil Procedure Act (cited by the Applicant as the source of the Court's jurisdiction to determine questions relating to the discharge of the decree)

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, "George Kaniaru v Olive Gardens Limited [2019] KEELRC 49 (KLR)", Case Analysis (2019). Cause No 34 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/49/eng@2019-12-09

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