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ELRCDismissedMisc Application No E032 of 2021· [2022] KEELRC 647 (KLR)

Khalwale & Company Advocates v Devyan Food Industries Kenya Limited, Formerly, Sameer Agriculture and Livestock Co. Limited [2022] KEELRC 647 (KLR)

Employment and Labour Relations Court
25 February 2022
827 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled a company was properly served with a bill of costs and its own payment records proved it had hired the advocate, so its challenge failed.

What this practically means

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Executive summary

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The applicant, Devyani Food Industries Kenya Limited (formerly Sameer Agriculture and Livestock Limited), filed a chamber summons under rule 11(4) of the Advocates Remuneration Order seeking leave to file a reference against a ruling dated 2nd September 2021, and an order that the process server, Christopher Mulinya, be summoned for cross-examination on his affidavit of service. The applicant argued that the advocate-client bill of costs and notice of taxation were never served, and denied any client-advocate relationship with the respondent, Khalwale & Company Advocates. The respondent filed a replying affidavit exhibiting the process server's affidavit showing physical service at the applicant's offices and service by registered courier. Applying rule 12 of the ELRC (Procedure) Rules, 2016 on service upon corporate bodies, the Court found service was duly effected. On the second ground, the applicant's own further affidavit admitted paying the respondent Kshs.100,000.00 in connection with ELRC Case No. 419 of 2014 (Gideon Muteti Njau v Sameer Agricultural & Livestock (Kenya) Limited), from which the Court concluded a client-advocate relationship was obvious; the disputed purpose of that payment was held to fall outside the scope of the application. The Court also observed that submissions seeking to set aside the decree and taxation proceedings had no basis, as no such prayer appeared in the application and no consequential steps were prayed for. Both main grounds having collapsed, the application dated 25th November 2021 and filed 26th November 2021 was dismissed with costs on 25th February 2022.

Key legal issues

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01

Sufficiency of service of the bill of costs and taxation notice on a corporate body

Holding

Service was duly effected in accordance with rule 12 of the ELRC (Procedure) Rules, 2016, being both physical service at the place of business and service by registered courier

Reasoning

Rule 12 permits service on a corporate body by leaving pleadings at a conspicuous place where it carries on business or by registered courier to the registered office. The process server left documents at the applicant's place of business as directed by the guards on duty and additionally served by registered courier. The Court therefore found no reason to doubt service, disposing of the first ground and the prayer for cross-examination of the process server.

p. 1
02

Existence of a client-advocate relationship

Holding

The applicant's own assertions (including admission of payment of Kshs.100,000.00 to the advocates) established the client-advocate relationship, collapsing the second ground

Reasoning

The applicant denied instructing the respondent but its further affidavit admitted paying the respondent Kshs.100,000.00 with respect to ELRC Case No. 419 of 2014, saying only that the taxing master had not been informed. The Court held it should now be obvious that a client-advocate relationship existed. The respondent claimed the payment was for other services, but the Court held the purpose of that payment fell outside the scope of the application.

p. 2

Legal principles established

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  • Service of court processes on a corporate body may be effected under rule 12 of the ELRC (Procedure) Rules, 2016 by leaving documents at a conspicuous place of business or by registered courier to the registered office where officers cannot be found

Court orders

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  1. 1.The application dated 25.11.2021 and filed on 26.11.2021 is dismissed with costs

Authorities

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Legislation

  • Advocates Remuneration Orderrule 11(4)
  • Constitution of KenyaArticle 50
  • Constitution of KenyaArticle 159(1)(d)
  • Civil Procedure Actsections 1A, 1B and 3A
  • Employment and Labour Relations Court (Procedure) Rules, 2016rule 12
Jurisdiction invoked
Rule 11(4) of the Advocates Remuneration Order; Articles 50 and 159(1)(d) of the Constitution; sections 1A, 1B and 3A of the Civil Procedure Act

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, "Khalwale & Company Advocates v Devyan Food Industries Kenya Limited, Formerly, Sameer Agriculture and Livestock Co. Limited [2022] KEELRC 647 (KLR)", Case Analysis (2022). Misc Application No E032 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/647/eng@2022-02-25

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