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ELRCDismissedApplication dated 29th September, 2023 (in ELRC cause, judgment delivered 10th February 2022)· [2024] KEELRC 966 (KLR)

Kenya Hotels and Allied Workers Union v Nyanza Club (Cause E004 of 2021) [2024] KEELRC 966 (KLR)

Employment and Labour Relations Court
2 May 2024
2,889 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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Nyanza Club's attempt to delay paying a KShs 5.2 million judgment failed, with the court saying the employer had exhausted its chances.

What this practically means

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Executive summary

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This is a ruling of the Employment and Labour Relations Court at Kisumu (C. N. Baari J) on Nyanza Club's notice of motion dated 29th September 2023, brought after judgment of 10th February 2022 awarded the Claimant union KShs. 5,227,548.00 and the decree holder proceeded to proclaim the Applicant's properties through Eshikhoni Auctioneers. The Applicant sought review/setting aside of orders of 26th September 2023 dismissing its application dated 7th August 2023 for non-attendance, joinder of 35 named employees as Interested Parties, and stay of execution with payment of the decree in monthly instalments of KShs. 100,000, citing mistake of counsel and an executed agreement with its employees. The Claimant opposed, arguing the consent was obtained under duress and the Applicant had not disclosed its full financial position. The court held that review under Section 16 of the ELRC Act and Rule 33 required new evidence, an error apparent on the record, or other sufficient cause, none of which was shown, and that a prior application had also been dismissed for non-attendance. Joinder was refused because the suit was already determined and the employees, represented by the union, would suffer no prejudice; notably it was the employer, not the employees, seeking joinder. On stay, the court was functus officio having already granted instalments on 27th April 2023 which the Applicant never complied with; and notice before execution was unnecessary since the last order was made on 26th July 2023, within one year under the proviso to Order 22 Rule 18. The motion was dismissed with costs to the Claimant.

Key legal issues

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01

Review of dismissal for non-attendance

Holding

Review was refused; the alleged mistake of counsel did not meet the Rule 33 threshold and the Applicant's repeated non-attendance showed disinterest.

Reasoning

Section 16 of the ELRC Act and Rule 33 of the ELRC (Procedure) Rules 2016 empower review on discovery of new matter, error apparent on the face of the record, need for clarification or other sufficient reason. The Applicant attributed non-attendance to counsel's mistake but alleged no new evidence or error. Relying on Republic v Advocates Disciplinary Tribunal Ex parte Apollo Mboya, review requires very strong grounds. A prior application had also been dismissed for non-attendance, showing disinterest and a desire to delay execution.

p. 4
02

Joinder of the Applicant's employees as Interested Parties

Holding

Joinder declined; the requirements for joinder were not met.

Reasoning

Applying the definition of an interested party in the Mutunga Rules as cited in Judicial Service Commission v Speaker of the National Assembly, and Trusted Society of Human Rights Alliance v Mumo Matemu, joinder is discretionary and requires demonstrated prejudice from non-joinder. The suit had been heard and determined with final orders in the employees' favour through their union, so no prejudice would arise. It was suspect that the employer, not the employees, sought the joinder, and the employees filed no evidence of their own wish to join.

p. 5
03

Stay of execution and instalment payments

Holding

Stay refused; the court was functus officio on instalments and no compliance with earlier orders was shown.

Reasoning

A similar instalment application had been determined by a ruling dated 27th April 2023, and the Applicant led no evidence of compliance, rendering the court functus officio on that issue. On the alleged illegality of execution more than one year after decree, Order 22 Rule 18(1) requires notice, but the proviso applied because the last order in execution proceedings was made on 26th July 2023, within one year of the execution application. The Applicant had also not paid a single instalment.

p. 5

Legal principles established

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  • Review under Rule 33 is only granted on the enumerated grounds of new and important matter, mistake or error apparent on the face of the record, need for clarification, or other sufficient reason.
  • Joinder of an interested party does not issue as of right but at the discretion of the court, requiring demonstration of an identifiable stake and prejudice from non-joinder.
  • Notice to show cause is required under Order 22 Rule 18 where execution is applied for more than one year after the decree, unless the proviso applies because the application is made within one year of the last order on a previous application for execution.

Court orders

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  1. 1.The motion dated 29th September 2023 is dismissed
  2. 2.Costs of the application to the Claimant/Respondent

Authorities

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Legislation

  • Civil Procedure RulesOrder 1 Rule 10(2)
  • Civil Procedure RulesOrder 22 Rule 22
  • Civil Procedure RulesOrder 51
  • Civil Procedure RulesOrder 22 Rule 18(1)
  • Civil Procedure ActSections 1A, 1B, 3A
  • Employment and Labour Relations Court ActSection 16
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rule 33
  • Constitution of Kenya (Protection of Rights and Fundamental Freedoms) Practice and Procedure Rules, 2013 (Mutunga Rules)Rule 2

Cases cited (5)

  • Republic v Advocates Disciplinary Tribunal Ex parte Apollo Mboya
    [2019] eKLR
  • Judicial Service Commission v. Speaker of The National Assembly & 8 Others
    [2014] eKLR
  • Trusted Society of Human Rights Alliance v. Mumo Matemu
    (2014) eKLR
  • Reuben Nyanginja Ndolo Vs Dickson Wathika Mwangi & 3 Others
    Election Petition No. 11 of 2008
  • Mini Bakeries (K) Ltd Vs George Ondieki Nyamanga
    Civil Appeal No. 18 of 2013
Jurisdiction invoked
Sections 16 of the Employment and Labour Relations Court Act and Rule 33 of the Employment and Labour Relations Court (Procedure) Rules, 2016; Order 1 Rule 10(2), Order 22 Rule 22 and Order 51 of the Civil Procedure Rules; Sections 1A, 1B, 3A of the Civil Procedure Act

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, "Kenya Hotels and Allied Workers Union v Nyanza Club (Cause E004 of 2021) [2024] KEELRC 966 (KLR)", Case Analysis (2024). Application dated 29th September, 2023 (in ELRC cause, judgment delivered 10th February 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/966/eng@2024-05-02

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