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ELRCAllowedCause No 1618 of 2018· [2024] KEELRC 2756 (KLR)

Mwandale v Integrated Science and Engineering Projects Ltd (Cause 1618 of 2018) [2024] KEELRC 2756 (KLR)

Employment and Labour Relations Court of Kenya at Nairobi
11 November 2024
3,592 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court set aside a default judgment because the affidavit of service was defective, confirming that improper service makes such judgments voidable as of right.

What this practically means

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Executive summary

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The Applicant (Judgment Debtor) moved the Court by Notice of Motion dated 22nd July 2024 under Order 10 Rule 11 and Order 51 of the Civil Procedure Rules, seeking to set aside the default judgment of 28th March 2024 by Justice Ocharo Kebira, condemning it to pay Kshs. 410,500 plus Kshs. 150,000 in costs, and for leave to file its defence out of time. It contended it was never served with summons, the statement of claim, or any hearing notices, and that the affidavit of service relied on was defective for failing to identify the person served and the time of service, contrary to the requirements for service on a corporation under Order 5 Rules 3 and 15. The Respondent (Decree Holder) opposed, asserting service was effected at the Applicant's offices upon Eng. Caleb Opati, and questioning the absence of a draft defence and security for the judgment. The Court compared the affidavits of service, found the Respondent's version was at variance with the record, and established that the only affidavit on record (dated 29th July 2019) did not disclose the time of service, the name of the person served, or the identifying person, and the Respondent's annexure was not on the record and bore no Court stamp. Relying on Gulf Fabricators v County Government of Siaya and following James Kanyita Nderitu v Maries Philotas Ghika, the Court held the judgment was an irregular default judgment, to be set aside as a matter of right without requiring a draft defence or security, the Applicant having been condemned unheard in breach of Audi Alteram Partem. The application was allowed with costs to the Applicant, and the Respondent was granted liberty to serve afresh for a hearing de novo.

Key legal issues

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01

Validity of service on a corporation and the adequacy of the affidavit of service

Holding

The affidavit of service on record was defective for failure to disclose the time of service, the name of the person served and the name of the person identifying the person to be served, contrary to Order 5 Rules 3 and 15 of the Civil Procedure Rules, and the affidavit produced by the Respondent dated 4th July 2020 was not on the Court record and bore no Court stamp.

Reasoning

Service on a corporation must be effected on the secretary, director or other principal officer under Order 5 Rule 3. An affidavit of service must state when and how summons was served and identify the person served and any witness, per Order 5 Rule 15. The only affidavit on record, sworn by Antony S. Lyuba, met none of these requirements: it named no person served, gave no time of service, and the Respondent's version varied from the record.

p. 4
02

Whether the default judgment was regular or irregular and the consequences for setting it aside

Holding

The judgment of 28th March 2024 was an irregular default judgment because the Applicant was not properly served; it had to be set aside as a matter of right without regard to a draft defence, delay or security for the judgment.

Reasoning

Applying James Kanyita Nderitu v Maries Philotas Ghika, an irregular judgment entered against a defendant not served or not properly served is set aside ex debito justiciae; the court need not consider triable issues or delay because the defendant was condemned unheard. The Applicant was not served with a single date of proceedings, breaching Audi Alteram Partem.

p. 6
03

Whether the Applicant needed to file a draft defence or provide security for the judgment

Holding

Where the judgment is irregular, the Applicant did not need to file a draft defence or deposit security for the judgment.

Reasoning

The Court of Appeal's framework distinguishes regular default judgments, where discretion applies, from irregular ones, where the judgment is set aside as of right and the court does not venture into considerations of triable issues, delay, draft defences or security. Having found defective service, the Court held these requirements inapplicable.

p. 6

Legal principles established

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  • Where the affidavit of service leading to default proceedings is defective, the resulting default judgment is irregular and must be set aside as a matter of right (ex debito justiciae), without requiring a draft defence or security for the judgment
  • An affidavit of service must state the time and manner of service and the name and address of the person served and identifying the person served, failing which service on a corporation is defective under Order 5 Rules 3 and 15 of the Civil Procedure Rules
  • Proceedings conducted without proper service breach the rule of natural justice that no party shall be condemned unheard

Court orders

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  1. 1.The application dated 22nd July 2024 is allowed on account of defective affidavit of service
  2. 2.The default judgment entered for the Respondent against the Applicant and delivered on the 28th March 2024 by Justice Ocharo Kebira is set aside together with all consequential orders
  3. 3.Costs of the application to the Applicant
  4. 4.The Respondent is at liberty to serve the summons, the statement of claim and annexures afresh in compliance with the law for the suit to be heard de novo

Authorities

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Legislation

  • Civil Procedure RulesOrder 10 Rule 11
  • Civil Procedure RulesOrder 51
  • Civil Procedure RulesOrder 5 Rule 3
  • Civil Procedure RulesOrder 5 Rule 15
  • Civil Procedure RulesOrder 10 Rule 2
  • Civil Procedure ActSections 1A, 1B and 3A
  • Constitution of KenyaArticle 159(2)(a, b and d)

Cases cited (11)

  • Gulf Fabricators v County Government of Siaya (Civil Appeal 10 of 2019) [2020] KEHC 5952 (KLR)
    [2020] KEHC 5952 (KLR) (6 May 2020)
  • Asivila Bonareri v Rose Obaga, Civil Case No. 7 of 2019
  • Agigreen Consulting Corporation Ltd v National Irrigation Board, Civil Case No. E252 of 2019
  • Ali Bin Khamis v Salim Khamis Korobe & 2 Others
    [1956] 23 EACA 195
  • James Kanyita Nderitu v Maries Philotas Ghika & Another, CA No. 6 of 2015 [2016] eKLR
    [2016] eKLR
  • Mbogo & Another v Shah
  • Patel v EA Cargo Handling Services Ltd
    [1975] EA 75
  • Chemwolo & Another v Kubende
    [1986] KLR 492
  • CMC Holdings v Nzioki
    [2004] 1 KLR 173
  • Onyango Oloo v Attorney General
    [1986 - 1989] EA 456
  • Sangram Singh v Election Tribunal, Kotch
    AIR 1955 SC 664
Jurisdiction invoked
Order 10 Rule 11 and Order 51 of the Civil Procedure Rules; Sections 1A, 1B and 3A of the Civil Procedure Act; Article 159(2)(a, b and d) of the Constitution of Kenya

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, "Mwandale v Integrated Science and Engineering Projects Ltd (Cause 1618 of 2018) [2024] KEELRC 2756 (KLR)", Case Analysis (2024). Cause No 1618 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2756/eng@2024-11-11

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