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ELRCAllowedCause No 548 of 2016· [2021] KEELRC 149 (KLR)

Patrick Maina Mungai & 4 others v Bon Motors Limited & 2 others [2021] KEELRC 149 (KLR)

Employment and Labour Relations Court
10 December 2021
MOMaureen Onyango
1,008 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Nairobi court ordered Bon Motors to pay five former employees over Kshs.5.2 million in unpaid redundancy dues because the company never defended the claim.

What this practically means

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Executive summary

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By a letter dated 25th August 2011, B. P. Ndegwa, the Managing Director of Bon Motors Company Limited, informed the District Labour Officer, Nairobi of the company's intention to declare its remaining nine employees redundant, admitting outstanding final dues of approximately Kshs.9,060,000 and proposing to pay them in instalments of Kshs.1,000,000 per quarter. Payments followed between November 2011 and 30th April 2014, when the Sub County Labour Officer confirmed receipt of the final payment of Kshs.90,000 and asked the company to clear the outstanding balance under the agreement dated 6th September 2011. The five Claimants pleaded in their memorandum of claim that a total of Kshs.3,792,781 had been paid, leaving a balance of Kshs.5,207,219, itemised per claimant, which they sought with interest and costs. The Respondents, though properly served as evidenced by an affidavit of service, neither entered appearance nor filed a response, and the court certified the suit for hearing as an undefended claim. Holding that the sum was admitted, the court entered judgment for the Claimants against the Respondents jointly and severally for Kshs.5,207,219 as itemised, with interest on the decretal sum from the date of judgment and costs of the suit. The judgment was delivered virtually at Nairobi on 10th December 2021 pursuant to COVID-19 directions issued by the Chief Justice.

Key legal issues

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01

Liability of the Respondents for outstanding terminal dues following the 2011 declaration of redundancy

Holding

Judgment entered for the Claimants jointly and severally against the Respondents for the admitted balance of Kshs.5,207,219, with interest and costs.

Reasoning

The Respondents notified the District Labour Officer by letter dated 25th August 2011 of their intention to declare all employees redundant, admitting final dues of approximately Kshs.9,060,000. Payments were made between November 2011 and 30th April 2014, when the Sub County Labour Officer confirmed receipt of the final payment of Kshs.90,000, leaving the claimed balance. The Respondents, though duly served, filed no appearance or response, so the claim proceeded undefended and the pleaded sum was treated as admitted.

p. 3

Legal principles established

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  • Where respondents are duly served with summons and a claim, and do not file appearance or response, the court may certify the suit as undefended and proceed to judgment, and an admitted sum claimed may be awarded as pleaded.

Court orders

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  1. 1.Judgment entered for the Claimants against the Respondents jointly and severally in the sum of Kshs.5,207,219, apportioned: Patrick Maina Mungai Kshs.354,205; George Gitangu Mbugua Kshs.1,885,594; John Njuguna Irungu Kshs.54,775; Edward Karanja Thiong'o Kshs.577,323; Jackson Ndegwa Mugwe Kshs.2,277,670
  2. 2.Respondents to pay interest on the decretal sum from the date of judgment
  3. 3.Respondents to pay costs of the suit

Authorities

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Legislation

  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 48
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over redundancy and terminal dues claims (statutory basis not expressly cited in the judgment)

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, "Patrick Maina Mungai & 4 others v Bon Motors Limited & 2 others [2021] KEELRC 149 (KLR)", Case Analysis (2021). Cause No 548 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/149/eng@2021-12-10

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