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ELRCDismissed· [2023] KEELRC 596 (KLR)

Wasike v Nzoia Sugar Company Limited; Diamond Trust Bank Kenya Limited & 2 others (Garnishee) (Employment and Labour Relations Cause 90 of 2017) [2023] KEELRC 596 (KLR)

Employment and Labour Relations Court
2 March 2023
2,958 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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The Employment Court in Bungoma blocked an attempt to attach Nzoia Sugar Company's bank accounts because the judgment creditor had not first taxed its costs.

What this practically means

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Executive summary

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The Applicant, having obtained judgment against Nzoia Sugar Company Limited for Kes 4,457,388.00 plus costs and interest, moved the court by notice of motion dated January 12, 2023 under sections 1A, 3A and 38(c) of the Civil Procedure Act and Order 23 of the Civil Procedure Rules seeking attachment of monies held by three garnishee banks for the judgment debtor. The Respondent opposed, contending the application was premature because costs of the suit had not been taxed, and noting a notice of appeal had been lodged. The third garnishee disclosed a credit balance of KES 96,398.68 insufficient to satisfy the decree. The court framed two issues: whether the application was premature for lack of taxation of costs, and if not, whether it was merited. Both parties agreed on the law under section 94 of the Civil Procedure Act and relied on African Commuter Services Ltd v Kenya Civil Aviation Authority, which holds that where a judgment creditor has expressly foregone costs, execution before taxation may proceed. The Applicant's counsel asserted in written submissions that costs were waived. The court, however, found that the Applicant pleaded costs and interest in prayers (b) and (c) of the application and in the supporting affidavit, and that submissions are not pleadings and are not evidence, applying the Court of Appeal authorities cited in Robert Ngande Kathathi v Francis Kivuwa Kitonde. The court distinguished African Commuter Services, where the waiver was placed on the record in open court. Holding that section 94 had to be strictly complied with, the court dismissed the garnishee application as premature with costs, while leaving the Applicant free to execute in accordance with the law, the decree not having been stayed.

Key legal issues

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01

Whether the garnishee application was premature for failure to tax costs before execution

Holding

Yes. Since the applicant pleaded costs and interest in the application and supporting affidavit, the waiver of costs raised only in submissions could not stand, and section 94 required strict compliance before execution.

Reasoning

The parties concurred that leave under section 94 of the Civil Procedure Act is required to execute a decree before costs are ascertained, unless costs are waived. The applicant sought costs and interest in prayers (b) and (c) and in the supporting affidavit. The alleged waiver appeared only in counsel's written submissions, which the court held are not pleadings and cannot be a source of evidence. With costs neither taxed nor clearly waived, the application was premature.

p. 6
02

The evidentiary status of written submissions

Holding

Submissions are not pleadings and are not evidence; a judgment cannot be based on written submissions alone.

Reasoning

The court, guided by the Court of Appeal decisions cited in Robert Ngande Kathathi v Francis Kivuwa Kitonde, including Avenue Car Hire & Another v Slipha Wanjiru Muthegu, held that no judgment can be based on written submissions since submissions are not a mode of receiving evidence, and that producing evidence via submissions is impermissible.

p. 6
03

Whether African Commuter Services Ltd v Kenya Civil Aviation Authority applied

Holding

Distinguished on its facts: unlike in that case, the alleged waiver of costs here was not on the court record at a hearing but appeared only in written submissions.

Reasoning

Both parties relied on African Commuter Services, where Mabeya J held that where costs are foregone the mischief of multiple executions under section 94 does not arise and execution may proceed for the principal sum. The court found the case inapplicable because in it the waiver was intimated in court to both the Court and the Respondent, whereas here the contradiction with the pleadings defeated the claimed waiver.

p. 6

Legal principles established

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  • Written submissions are not pleadings and no evidence can be produced by way of submissions; a waiver of costs contradicted by the party's own pleadings cannot be founded on submissions.
  • A judgment creditor who claims costs and interest in the application and supporting affidavit cannot execute before taxation of costs unless the decree is executed by leave of the court or upon an express waiver of costs.

Court orders

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  1. 1.The garnishee application dated January 12, 2023 is dismissed
  2. 2.The application is dismissed with costs to the Respondent

Authorities

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Legislation

  • Civil Procedure Act (CAP 21 Laws of Kenya)section 1A
  • Civil Procedure Act (CAP 21 Laws of Kenya)section 3A
  • Civil Procedure Act (CAP 21 Laws of Kenya)section 38(c)
  • Civil Procedure Act (CAP 21 Laws of Kenya)section 94
  • Civil Procedure RulesOrder 23 Rules 1(1), 2, 9 & 10
  • Civil Procedure RulesOrder 51
  • Civil Procedure RulesOrder 17 Rule 2 [now Order 18 rule 2]

Cases cited (5)

  • African Commuter Services Ltd v Kenya Civil Aviation Authority & 2 others
    (2014)
  • Erad Suppliers & General Contractors v NCPB
  • Robert Ngande Kathathi v Francis Kivuwa Kitonde
    [2020] eKLR
  • Avenue Car Hire & Another v Slipha Wanjiru Muthegu
    Civil Appeal No. 302 of 1997
  • Muchami Mugeni v Elizabeth Wanjugu Mungara & Another
    Civil Appeal No. 141 of 1998
Jurisdiction invoked
Sections 1A, 3A and 38(c) of the Civil Procedure Act (CAP 21 Laws of Kenya), Order 23 Rules 1(1), 2, 9 & 10 and Order 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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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Wasike v Nzoia Sugar Company Limited; Diamond Trust Bank Kenya Limited & 2 others (Garnishee) (Employment and Labour Relations Cause 90 of 2017) [2023] KEELRC 596 (KLR)", Case Analysis (2023). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/596/eng@2023-03-02

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