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ELRCPartially Allowed· [2019] KEELRC 1095 (KLR)

Maxwell Agutu Maigo v Kenya National Trading Corporation Limited & another [2019] KEELRC 1095 (KLR)

Employment and Labour Relations Court
10 July 2019
2,440 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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The Judgment Debtor/Applicant moved the court by Notice of Motion dated 19th March 2019 under Sections 3A and 63(c) & (e) of the Civil Procedure Act and various Orders of the Civil Procedure Rules, seeking leave for new advocates to come on record post-judgment, temporary injunctions restraining the sale of motor vehicles KBR 205U and KAY 079V and trailer ZD 5216, stay of execution of the decree of 18th June 2018, and setting aside of warrants of attachment issued on 28th February 2019 and the notification of sale dated 13th March 2019. The Applicant contended it had fully settled the decretal sum of Kshs.3,195,632.57 under a consent of 2nd August 2018, that no proclamation notice was issued, and that the auctioneer lacked a valid 2019 licence. The Claimant/Respondent, through a Replying Affidavit sworn by its counsel Patrick Waiganjo Wachira, maintained the attachment was lawful, denied receiving the alleged payments, and questioned the application as an abuse of process. Both sides filed submissions and cited authorities on execution and affidavits sworn by advocates on record. The court found that the Applicant had paid the decretal sum by cheques drawn directly to the Claimant, bypassing the Claimant's Counsel, who was kept in the dark and thus levied execution. The court held the Applicant's conduct occasioned the mess, ordered that the Respondent's Counsel personally bear the Auctioneers' costs and other execution costs, that the taxed costs of Kshs.237,102 be paid to the Claimant's Counsel less sums already paid, and that the Applicants pay the costs of the application. The substantive injunctive and setting-aside prayers were not expressly disposed of.

Key legal issues

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01

Irregularity of execution against a judgment debtor who claims the decree was settled

Holding

The court found that although the decretal sum was largely paid, payment was made directly to the Claimant without informing the Claimant's Counsel, occasioning the warrants of attachment; no express setting aside of the warrants was ordered, but costs consequences were imposed on the Applicant's side.

Reasoning

The court traced the history: a consent of 2/8/2018 provided for payment of the decretal sum in instalments with costs to be taxed. The Applicant paid by cheques drawn directly to the Claimant from 6/5/2015 to 18/10/2018, without going through the Claimant's Counsel. Only a later cheque of Kshs.118,551 was paid through Counsel. Because Counsel had no information that the decree had been settled, warrants issued on 28/2/2019, proclamation followed on 13/3/2019 and notice of sale on 15/3/2019. The court held the Applicant's own departure from practice caused the execution.

p. 4
02

Costs of the aborted execution and of the application

Holding

The Auctioneers' costs and costs leading to execution are to be borne personally by the Respondent's (Applicant's) Counsel; the taxed costs of Kshs.237,102 are payable to the Claimant's Counsel by the Respondents less amounts already paid; costs of the application are payable by the Respondent/Applicants.

Reasoning

The court apportioned financial responsibility according to fault: because the mess in execution was occasioned by the Applicant's manner of dealing with the Claimant contrary to practice, the Applicant's Counsel was to personally bear the Auctioneers' costs and other execution costs, and the Applicants were also to pay the costs of the application. The taxed costs already on record were to be paid over, net of prior payments.

p. 4
03

Whether the Replying Affidavit sworn by the Claimant's counsel on record should be struck out

Holding

The court did not strike out the Replying Affidavit; it proceeded to determine the application on the averments of the parties notwithstanding the objection that counsel could not swear affidavits in contentious matters.

Reasoning

The Applicant objected that the Replying Affidavit deponed by Patrick Waiganjo Wachira offended Rule 9 of the Advocates Practice Rules and Order 19 Rule 3(1) of the Civil Procedure Rules, relying on Amina Adam, Regina Waithira Mwangi and Gerphas Alphonse Odhiambo. The Claimant relied on Kamlesh M.A Pattni. The judgment records no order striking out the affidavit; the court disposed of the application on its merits with costs consequences instead.

p. 4

Legal principles established

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  • Where a judgment debtor settles a decree directly with the claimant, bypassing the claimant's advocate on record, the resulting confusion in execution is attributable to the judgment debtor, who may bear the execution costs personally.

Court orders

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  1. 1.Taxed costs of Kshs. 237,102 to be paid to the Claimant's Counsel by the Respondents less what has already been paid
  2. 2.Respondent's Counsel to personally bear the Auctioneers' costs and other costs leading to execution
  3. 3.Costs of the application to be paid by the Respondent/Applicants

Authorities

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Legislation

  • Civil Procedure Act, Cap 21Sections 3A, 63(c) & (e), 44(1)
  • Civil Procedure Rules, 2010Order 9 Rule 9(a); Order 22 Rules 22, 41, 51(1), 59(3); Order 40 Rules 1(a), 4(1) & (2); Order 51 Rule 1; Order 19 Rule 3(1)
  • Auctioneers Rules, 1997Rule 12(1)(b)
  • Advocates Practice RulesRule 9

Cases cited (7)

  • Stephen Somek Takwenyi & Another v David Mbuthia Githare & 2 Others
    Nairobi HCCC No. 363 of 2009
  • Christopher Musyoka Musau v N.P.G. Warren & 8 Others
    (2013) eKLR
  • Green Island Ship Chandlers (K) Limited v Imperial Bank Limited (In Receivership) & Another
    (2018) eKLR
  • Kamlesh M.A Pattni v Nasir Ibrahim Ali & 2 Others
    (2005) eKLR
  • Amina Adam & 3 Others v Rosamma Alexander & 2 Others
    (1993) eKLR
  • Regina Waithira Mwangi v Boniface Nthenge
    (2015) eKLR
  • Gerphas Alphonse Odhiambo v Felix Adiego
    (2006) eKLR
Jurisdiction invoked
Sections 3A and 63(c) & (e) of the Civil Procedure Act, Cap 21; Orders 9, 22, 40 and 51 of the Civil Procedure Rules

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, "Maxwell Agutu Maigo v Kenya National Trading Corporation Limited & another [2019] KEELRC 1095 (KLR)", Case Analysis (2019). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1095/eng@2019-07-10

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