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ELRCPartially AllowedNotice of Motion dated 14th November 2023 (arising from Bungoma CMCC No. 194 of 2018)· [2023] KEELRC 3476 (KLR)

Country Farms Limited v Dieto & 2 others (Miscellaneous Case E011 of 2023) [2023] KEELRC 3476 (KLR)

High Court of Kenya
11 December 2023
2,940 words in judgment
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The bottom line

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A Kenyan court stopped the auction of attached property and ordered a fresh hearing, confirming that objection claims must be decided on their merits.

What this practically means

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Executive summary

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This ruling of the High Court at Kakamega (Jemimah Keli, J) determined a Notice of Motion dated 14th November 2023 by an objector whose property had been attached in execution of the decree in Bungoma CMCC No. 194 of 2018. The applicant sought leave to file an appeal against a ruling of Hon. T.M. Olando delivered on 11th October 2023, which dismissed his objection proceedings as frivolous and collusive because they had been instituted by the same advocate acting for the judgment debtors, and sought stay of execution. The 1st respondent, the decree-holder, opposed, contending the court lacked jurisdiction to grant leave since leave must first be sought before the lower court, that time for appeal had lapsed under section 79G, and that the objection proceedings were a collusion to defeat his decree. On the first issue, the court held that a dismissal of objection proceedings under Order 22 Rule 51(1) is not among orders appealable as of right under Order 43(1); leave was therefore mandatory under Order 43(2) and had to be sought in the first instance before the magistrate within fourteen days under Order 43(3). The applicant had only sought a stay before the magistrate, so the High Court had no jurisdiction to grant leave in the first instance, and Article 159(2)(d) could not cure the jurisdictional defect. On the second issue, the court found the magistrate erred in dismissing the objection on representation grounds without considering its merits, since the burden lay on the attaching claimant and conflict of interest could not defeat objection proceedings. The court set aside the magistrate's ruling, remitted the objection for determination on merit, and granted stay of the attachment pending that determination, with no order as to costs.

Key legal issues

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01

Whether the court has jurisdiction to grant leave to appeal

Holding

The court had no jurisdiction to grant leave in the first instance because an appeal from an order under Order 22 Rule 51(1) lies only with leave, and leave must first be sought from the court making the order under Order 43(2) and (3)

Reasoning

Order 43(1) lists orders appealable as of right, which under section 75(1)(h) include only Order 22 rules 25, 57, 61(3) and 73. A dismissal of objection proceedings under Order 22 Rule 51(1) is not among them, so leave was mandatory under Order 43(2). Order 43(3) requires such leave to be sought in the first instance from the court making the order, orally at the time or within fourteen days. The applicant never sought leave from the magistrate, only a stay, so the High Court lacked jurisdiction to entertain the leave prayer.

p. 5
02

Whether the applicant met the threshold for stay of execution

Holding

Stay of attachment was granted and the lower court ruling set aside because the magistrate dismissed the objection proceedings on representation grounds without considering merits, focusing on technicalities contrary to Article 159

Reasoning

The magistrate dismissed the objection proceedings as frivolous and collusion solely because the objector was represented by the same advocate as the judgment debtors, without considering the merits of the claim to the attached property. The court held that conflict of interest cannot be a basis for defeating objection proceedings, and that under Order 22 Rules 51 and 52 the court was obliged to consider the objection on its merits. Dismissal without merits was a failure to exercise judicial power and undue regard to technicalities.

p. 6

Legal principles established

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  • Where an order is not appealable as of right under Order 43(1), leave to appeal must first be obtained from the court that made the order, and failure to do so goes to jurisdiction
  • Lack of jurisdiction cannot be cured by Article 159(2)(d) on procedural technicalities

Court orders

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  1. 1.Set aside the ruling by Hon. T. M. Olando in Civil Case No. 194 of 2018 dated 11th October 2023
  2. 2.Return the application dated 15th September 2023 to the magistrate's court for determination of the objection application on merit
  3. 3.Stay of the attachment of the property of Country Farms Limited in execution of the judgment debt pending hearing and determination on merits of the objection application dated 15th September 2023
  4. 4.No order as to costs

Authorities

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Legislation

  • Civil Procedure ActSection 75(1)
  • Civil Procedure ActSection 75(1)(h)
  • Civil Procedure ActSection 79G
  • Civil Procedure (Amendment) Rules 2020Order 43 Rule 1
  • Civil Procedure (Amendment) Rules 2020Order 43 Rule 2
  • Civil Procedure (Amendment) Rules 2020Order 43 Rule 3(4)
  • Civil Procedure (Amendment) Rules 2020Order 22 Rule 51(1)
  • Civil Procedure (Amendment) Rules 2020Order 22 Rule 52
  • Civil Procedure (Amendment) Rules 2020Order 25 Rules 1 and 4
  • Civil Procedure (Amendment) Rules 2020Section 22 Rule 51
  • Constitution of Kenya 2010Article 159(2)(d)

Cases cited (6)

  • Mbaraka Suleiman Mbwana v Nasoro Bakari Nguta & another
    (2021) eKLR
  • Serephen Nyasani Menge vs Rispah Onsasa
    (2018) eKLR
  • Spire Bank Limited v Emerging Investments Limited
    (2020) eKLR
  • Mukisa Biscuits Manufacturing Co Ltd v West End Distribution Ltd
    [1969] E.A. 696
  • Kakuta Maimai Hamisi v Peris Pesi Tobiko & 2 others
    [2013] eKLR
  • Owners of Motor Vessel 'Lilian S' v Caltex Oil (K) Ltd
    (1989) KLR
On appeal from
Magistrate's Court at Bungoma
Civil Case No. 194 of 2018
Jurisdiction invoked
Sections 75 and 79G of the Civil Procedure Act; Order 43 of the Civil Procedure (Amendment) Rules 2020

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, "Country Farms Limited v Dieto & 2 others (Miscellaneous Case E011 of 2023) [2023] KEELRC 3476 (KLR)", Case Analysis (2023). Notice of Motion dated 14th November 2023 (arising from Bungoma CMCC No. 194 of 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3476/eng@2023-12-11

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