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ELRCAllowedCause 12/2020· [2023] KEELRC 1513 (KLR)

Ogechi v LTI Kisii Safari Inn Ltd t/a Kaskazi Beach Hotel; Barclays Bank aka Absa Bank Ltd (Garnishee) (Cause 12 of 2020) [2023] KEELRC 1513 (KLR)

Employment and Labour Relations Court
15 June 2023
ANAgnes Kitiku Nzei
1,554 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~6 min to read original · ~4 min brief

The bottom line

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A Kenyan court froze Ksh 4 million from a hotel's bank account to pay a worker who won an employment case, rejecting the hotel's claim the money belonged to another company.

What this practically means

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Executive summary

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This is a ruling on the Claimant/Decree Holder's Notice of Motion dated March 29, 2023 seeking a garnishee order nisi and, subsequently, a garnishee order absolute attaching Ksh 4,064,000 plus interest at 14% per annum from May 19, 2022 held in account No 2024584634 at Barclays Bank (aka Absa Bank) Limited, Diani Branch, to satisfy a decree issued on May 19, 2022 in the underlying employment cause. An earlier garnishee application against the Judgment Debtor's NCBA account had been allowed on January 19, 2023, with liberty granted to pursue further execution if funds were insufficient. The Judgment Debtor opposed the present application through a replying affidavit of its director, Dr Charles Gekonde Otara, asserting that the attached account belonged to a different company, and that Kisii Safari Inns traded as Kaskazi Beach Hotel and not Kaskazi Beach Resort. The Garnishee bank, though represented, filed no response. The court noted the account number appeared on a Kaskazi Beach Hotel proforma invoice, the employment documents bore Kaskazi Beach Hotel letterheads, the respondent never denied employing the claimant, no objector proceedings had been filed, and the bank produced nothing to show the account belonged to another entity. The court held the respondent's denial legally and logically untenable, allowed the motion, and issued a garnishee order absolute attaching the decretal sum plus interest, less any amounts already paid, to be paid forthwith to the Decree Holder, with costs to the Decree Holder.

Key legal issues

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01

Ownership of the attached bank account and entitlement to garnishee execution

Holding

The court found it untenable for the Judgment Debtor to deny that the attached account was its own, noting the account number appeared on a proforma invoice issued by Kaskazi Beach Hotel and on the employer's letterheads, no objection proceedings were filed, and the Garnishee bank did not dispute ownership.

Reasoning

The suit had been brought against LTI Kisii Safari Inn Ltd trading as Kaskazi Beach Hotel. The attached account number appeared on a proforma invoice issued by Kaskazi Beach Hotel, and the employment letters were on Kaskazi Beach Hotel letterheads; the respondent never denied employing the claimant. No objector proceedings had been filed despite attachment since March 30, 2023, and the garnishee bank filed nothing to show the account belonged to another entity. The director's assertion that two different companies were involved was therefore rejected as legally and logically untenable.

p. 3

Legal principles established

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  • In garnishee proceedings, where the garnishee bank files no documents showing the attached account belongs to another entity and no objector proceedings are filed, the court may treat the account as belonging to the judgment debtor.

Court orders

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  1. 1.A Garnishee Order Absolute attaching Ksh 4,064,000 plus interest at 14% per annum from May 19, 2022 until payment in full held in account No 2024584634, Barclays Bank (aka Absa Bank) Limited, Diani Branch
  2. 2.The attached sum, less any amounts already paid, to be paid to the Claimant/Decree Holder and/or his Advocates by the Garnishee forthwith
  3. 3.Costs of the application awarded to the Claimant/Decree Holder, to be paid by the Respondent/Judgment Debtor
Jurisdiction invoked
Garnishee execution proceedings in an employment cause under the Employment and Labour Relations Court's decree-execution powers (Civil Procedure procedure applied to enforcement of a decree of the Court)

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, "Ogechi v LTI Kisii Safari Inn Ltd t/a Kaskazi Beach Hotel; Barclays Bank aka Absa Bank Ltd (Garnishee) (Cause 12 of 2020) [2023] KEELRC 1513 (KLR)", Case Analysis (2023). Cause 12/2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1513/eng@2023-06-15

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