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ELRCAllowedChamber Summons dated 8th February, 2023· [2023] KEELRC 1816 (KLR)

Krishnamurthy v Nairobi West Hospital (Cause E573 of 2021) [2023] KEELRC 1816 (KLR)

Employment and Labour Relations Court
27 July 2023
2,486 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 enforced an employment arbitration award in full, confirming that resisting enforcement requires concrete proof, not vague allegations.

What this practically means

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Executive summary

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The Claimant moved the court by Chamber Summons dated 8th February 2023 under Section 36 of the Arbitration Act seeking recognition and adoption of a final arbitral award of 15th December 2022 by Dr. Wilfred A. Mutubwa, sole arbitrator, awarding USD 141,465.16 and Kshs. 9,955,356 as compensatory damages arising from a contract of employment dated 30th June 2020 whose Clause 6.2 contained an arbitration agreement. The Respondent, through a Replying Affidavit of its Human Resource Manager Mary Ng'ang'a, opposed enforcement on the grounds that a setting-aside application was pending on the basis that the award contravened public policy, the arbitrator ignored Section 29(5) of the Arbitration Act and acted beyond his mandate. The court framed a single issue: whether the Claimant had made a case for recognition and enforcement. It found the Section 36(3) requirements satisfied, the Claimant having furnished the award and the arbitration agreement. On the merits, the court held that Clause 6.2 referred any employment dispute, including salary, to arbitration; absent specific terms of reference the tribunal was properly guided by the statement of claim, and the arbitrator's factual finding on salary was not before the court. The Respondent furnished neither particulars nor the relevant award extracts for its allegations of irregularity and bias, failing its burden under Section 107 of the Evidence Act, and identified no public policy breached. Judgment was entered in terms of the award with costs of the application to the Claimant.

Key legal issues

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01

Whether the Claimant complied with Section 36(3) of the Arbitration Act for recognition and enforcement

Holding

Compliance established; the award and arbitration agreement were furnished

Reasoning

The Claimant availed the original arbitral award of Dr. Wilfred A. Mutubwa dated 15th December 2022 together with the Appointment Letter dated 30th June 2020, whose Clause 6.2 constitutes an arbitration agreement within the meaning of Section 2 of the Arbitration Act. The court was satisfied the Section 36(3)(a) and (b) requirements were met, relying on Odunga J. in Boleyn Magic Wall Panel and Majanja J. in Capture Solutions.

p. 3
02

Whether the arbitrator exceeded his mandate by awarding salary of USD 10,667 not specified in the contract, contrary to Section 29(5)

Holding

The arbitrator did not exceed his mandate

Reasoning

Clause 6.2 referred any dispute arising out of the contract of employment to arbitration, including salary. The parties opened up the entire contract during the arbitral proceedings and there were no specific terms of reference, so the tribunal was guided by the claims in the statement of claim. The court noted the arbitrator's finding on salary was a finding of fact not before it.

p. 5
03

Whether the Respondent proved that enforcement would be contrary to public policy or otherwise engage Section 37

Holding

No; the Respondent failed to discharge the burden of proof

Reasoning

The Respondent provided neither particulars nor the relevant parts of the award in support of allegations of irregularities, bias and miscarriage of justice. On public policy, it neither identified the policy breached nor the portions of the award in conflict, citing Christ for All Nations, IEBC v Nyakongo (Glencore Grain) and Dinesh Construction for the narrow scope of the public policy ground.

p. 6

Legal principles established

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  • Recognition and enforcement of domestic arbitral awards under Section 36 is automatic once the award and arbitration agreement are furnished, with the burden then on the resisting party under Section 37.
  • A party resisting enforcement must isolate and prove grounds under Section 37; public policy objections must be specifically identified.

Court orders

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  1. 1.The arbitral award made on 15th December, 2022 by Dr. Wilfred A. Mutubwa as sole arbitrator is recognized as binding upon the parties to the suit
  2. 2.Judgment is entered in terms of the arbitral award
  3. 3.Costs of the application awarded to the Claimant
Jurisdiction invoked
Section 36 of the Arbitration Act, Cap 49

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, "Krishnamurthy v Nairobi West Hospital (Cause E573 of 2021) [2023] KEELRC 1816 (KLR)", Case Analysis (2023). Chamber Summons dated 8th February, 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1816/eng@2023-07-27

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