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ELRCAllowedBungoma High Court Civil Appeal (arising from BUTALI SRMCC NO. 161 OF 2015)· [2022] KEELRC 933 (KLR)

West Kenya Sugar Co. Ltd v Matayo Ingoshe [2022] KEELRC 933 (KLR)

High Court of Kenya
27 January 2022
2,520 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's High Court gave West Kenya Sugar a second chance to appeal a 2018 judgment, ruling that a lawyer's filing mistake shouldn't punish the client.

What this practically means

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Executive summary

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This ruling of the High Court at Bungoma (J. W. Keli, J) determined a Notice of Motion dated 1st November 2021 by West Kenya Sugar Co. Ltd seeking extension of time to appeal against the judgment and decree in Butali SRMCC No. 161 of 2015 (Matayo Ingoshe v West Kenya Sugar Co. Ltd) and stay of execution pending appeal. The applicant's earlier appeal, Kakamega High Court Appeal No. 56 of 2018, was struck out on 6th August 2021 for want of jurisdiction, and an application to transfer it to the High Court at Bungoma was dismissed on 4th October 2021. The respondent opposed, citing inordinate delay of over three years since the trial decree, lack of seriousness, absence of a rebutted case, and a successful litigant's right to the fruits of judgment. The court applied sections 79G and 95 of the Civil Procedure Act and Article 159(2)(d) of the Constitution. It found the whole period of delay explained, holding that a counsel's mistake in filing in a court without jurisdiction should not be visited on the innocent litigant, and took judicial notice of past jurisdictional uncertainty over WIBA matters. The affidavit sworn by the incoming advocate was held competent, the Order 9 Rule 9 objection being a curable technicality. Substantial loss was demonstrated by the decree holder's impecuniosity and unrebutted evidence of security deposited in a joint interest-earning account. The intended appeal was found arguable. The application was allowed with leave to file the appeal within 14 days and stay of execution pending appeal, but costs were awarded to the respondent in any event.

Key legal issues

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01

Whether leave to appeal out of time under section 79G and section 95 of the Civil Procedure Act should be granted

Holding

Leave granted; the delay from the 2018 decree to the November 2021 application was satisfactorily explained by the striking out of the High Court appeal and the dismissal of the transfer application.

Reasoning

Section 79G requires good and sufficient cause for delay. The applicant had lodged an appeal at Kakamega High Court which was struck out for want of jurisdiction, then sought transfer which was rejected on 4th October 2021, and filed this application on 1st November 2021. Relying on Waruthiu and Salat, the court found the entire period explained, added that counsel's mistake should not be visited on the innocent litigant, and took judicial notice of past jurisdictional uncertainty over WIBA matters.

p. 2
02

Whether the affidavit sworn by the incoming advocate was competent and complied with Order 9 Rule 9

Holding

The affidavit was competent; the consent filed with the outgoing advocate cured any Order 9 Rule 9 defect and the objection was a technicality.

Reasoning

The depositions concerned matters counsel is competent to address, annexing court rulings and pleadings. Following S.K. Tawadi v Veronica Muehlmann, the purpose of Order 9 Rule 9 is to protect outgoing advocates, not to prejudice other parties. A consent dated 30th October 2021 had been filed in the trial court, satisfying the rule's purpose. Article 159(2)(d) required the court to disregard the procedural technicality.

p. 3
03

Whether the applicant would suffer substantial loss if stay of execution were refused

Holding

Substantial loss was demonstrated: the decree holder was said to be a man of straw, and security of the decretal amount was already deposited in a joint interest-earning account.

Reasoning

Order 42 Rule 6(2) requires demonstration of substantial loss. The applicant relied on Shell v Kibiru, showing potential loss of money if paid since the respondent could not repay. The respondent was a man of straw per trial evidence and did not rebut the averment that security had been deposited into a joint interest-earning account of the trial advocates. Applying Butt v Rent Restriction Tribunal, the court found stay warranted so the appeal would not be rendered nugatory.

p. 3
04

Whether the intended appeal is arguable

Holding

The draft memorandum of appeal raised arguable issues on liability and damages deserving a day in court.

Reasoning

The test is whether the appeal is arguable and not frivolous. The draft memorandum questioned the trial court's treatment of the defence evidence, the finding of liability absent proof of breach of duty of care, and the conclusions on liability and damages. The court found these arguable, consistent with First American Bank of Kenya v Gulab P Shah.

p. 3

Legal principles established

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  • The whole period of delay must be explained for a court to enlarge time for filing an appeal.
  • A mistake of counsel in filing an appeal in a court without jurisdiction should not be visited on the innocent litigant.
  • Procedural technicalities should not defeat justice under Article 159(2)(d) of the Constitution.

Court orders

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  1. 1.Leave granted to the Applicant to file appeal out of time from the judgment and decree in BUTALI SRMCC NO. 161 OF 2015, the appeal to be filed within 14 days
  2. 2.Stay of execution of the decree in BUTALI SRMCC NO. 161 OF 2015 granted pending the lodgment, hearing and determination of the appeal
  3. 3.Failure to file the appeal within 14 days will lead to automatic vacation of orders (a) and (b)
  4. 4.Costs to the Respondent in any event

Authorities

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Legislation

  • Civil Procedure ActSection 1A
  • Civil Procedure ActSection 1B
  • Civil Procedure ActSection 3A
  • Civil Procedure ActSection 79G
  • Civil Procedure ActSection 95
  • Civil Procedure RulesOrder 42 Rule 6
  • Civil Procedure RulesOrder 51 Rule 1 and 3
  • Civil Procedure RulesOrder 9 Rule 9
  • Constitution of KenyaArticle 159(2)(d)

Cases cited (7)

  • George Kangethe Waruthiu -vs Estina Nyamweru & another
    (2021) eKLR
  • Nicholas Kiptoo Arap Korir Salat v Independent Electotral boundaries commission and 7 others
    (2014) Eklr
  • First American Bank of Kenya -vs- Gulab P shah 2 others
    Nairobi HCC NO. 2255 of 2000 (2002)/EA 65
  • S.K. Tawadi v Veronica Muehlmann
    (2019) eKLR
  • Shell ltd -vs- Kibiru & Another
    Civil Appeal No. 97 of 1996
  • MFI Document Solutions ltd v Paretto Printing works limited
    (2021) eKLR
  • Butt v Rent Restriction Tribunal
    (1982) 417
On appeal from
Butali Senior Resident Magistrate's Court
SRMCC No. 161 of 2015
Jurisdiction invoked
Sections 1A, 1B, 3A, 79G and 95 of the Civil Procedure Act, Cap 21; Order 42 Rule 6 and Order 51 Rule 1 and 3 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, "West Kenya Sugar Co. Ltd v Matayo Ingoshe [2022] KEELRC 933 (KLR)", Case Analysis (2022). Bungoma High Court Civil Appeal (arising from BUTALI SRMCC NO. 161 OF 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/933/eng@2022-01-27

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