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ELRCPartially AllowedNot stated on the face of the ruling (ELRC Garnishee proceedings arising from claim against the respondent/Judgment Debtor)· [2025] KEELRC 801 (KLR)

Kenya Hotels and Allied Workers Union v Praying Mantis Limited (Octopus Club) (Cause 129 of 2013) [2025] KEELRC 801 (KLR)

Employment and Labour Relations Court
12 March 2025
2,126 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court limited a bank garnishee's liability to the money actually frozen in the debtor's account—not the full judgment debt.

What this practically means

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Executive summary

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The 3rd Garnishee, Suqomuqo Enterprises Ltd, applied by Notice of Motion under Order 23 Rule 5 and Order 45 Rule 1 of the Civil Procedure Rules seeking review of a Garnishee Order absolute issued on 14th November 2024, so that its liability would be limited to the actual balance of Kshs.51,656 in the Judgment Debtor's account No.1260283125533, and seeking discharge from the proceedings. The claimant union, which held a judgment of 13th November 2020 for Kshs.1,950,790 plus assessed costs of Kshs.50,000 against the Judgment Debtor, opposed the application, arguing that the garnishee had not met the review threshold under Rule 74 of the ELRC (Procedure) Rules, 2024, that it had failed to attend court when served with the order nisi, and that the account was progressive. The court found that although the applicant did not anchor its motion on any Rule 74(1) ground, the substance of the application was the scope of a Garnishee Order absolute. Applying the principle that an order nisi freezes the debt in the garnishee's hands and that the garnishee's liability is confined to the funds actually held, and noting that the claimant did not substantiate the alleged progressiveness of the account, the court reviewed the ruling of 14th November 2024 (as rectified on 22nd November 2024) to limit the 3rd Garnishee's liability to the actual balance in the Judgment Debtor's account as at the date of the order nisi. The garnishee was not discharged. The motion being partially successful, each party was ordered to bear its own costs. The ruling was delivered virtually at Kisumu on 12th March 2025.

Key legal issues

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01

Whether the application satisfied the grounds for review under Rule 74(1) of the ELRC (Procedure) Rules, 2024

Holding

The application was not hinged on any of the Rule 74(1) grounds, but the court addressed the substantive request to limit the garnishee's liability.

Reasoning

Section 16 of the ELRC Act confers power to review judgments, orders or decrees in accordance with the rules. Rule 74(1) sets out grounds including discovery of new matter, error apparent on the face of the record, clarification, and sufficient cause. The applicant did not plead any of these grounds, but because the substance of the motion was the scope of its liability under the Garnishee Order absolute, the court proceeded to determine that issue on its merits rather than dismissing the application outright.

p. 3
02

Scope of a Garnishee Order absolute and limitation of the garnishee's liability

Holding

Since the Garnishee Order nisi froze the Judgment Debtor's account holding Kshs.51,656.40, the 3rd Garnishee's liability was limited to that actual balance.

Reasoning

The purpose of garnishee proceedings is to enable the judgment creditor to recover funds held by the garnishee. The order nisi binds the debt and creates a charge in favour of the judgment creditor; the garnishee can only be made liable up to the funds actually held. The applicant exhibited the account statement showing a balance of Kshs.51,656.48, while the claimant did not demonstrate the alleged progressiveness of the account or any basis for an instalment arrangement. Fairness therefore required limiting liability to the frozen balance.

p. 4
03

Whether the 3rd Garnishee should be discharged from the proceedings despite non-attendance at the garnishee hearing

Holding

The 3rd Garnishee was not discharged, but its liability was limited to the account balance.

Reasoning

The garnishee was served with the order nisi on 28th August 2024 but made no attempt to explain its non-attendance at the hearing since 7th October 2024. Under Order 23 Rule 4, a garnishee that does not appear risks execution against it. However, the claimant's proposal that the account be treated as progressive and paid over as deposits lacked evidential foundation. The court balanced these factors by reviewing the order absolute to cap liability at the frozen balance rather than discharging the garnishee entirely.

p. 4

Legal principles established

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  • A Garnishee Order Nisi operates as an injunction freezing the debt in the hands of the garnishee and, once made absolute, the garnishee bank becomes liable to pay the decree-holder
  • Where a garnishee does not appear at the hearing of the order nisi, the court may order execution against the garnishee under Order 23 Rule 4 of the Civil Procedure Rules

Court orders

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  1. 1.The court's ruling delivered on 14th November 2024 and rectified on 22nd November 2024 is reviewed to limit the liability of the 3rd Garnishee to the actual balance in the Judgment Debtor's account as at the date of the Garnishee Order nisi as per the court Order dated 14th November 2024
  2. 2.Each party to bear their own costs
Jurisdiction invoked
Section 16 of the Employment and Labour Relations Court Act; Order 23 Rules 4 and 5 and Order 45 Rule 1 of the Civil Procedure Rules; Rule 74 of the Employment and Labour Relations Court (Procedure) Rules, 2024

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 Praying Mantis Limited (Octopus Club) (Cause 129 of 2013) [2025] KEELRC 801 (KLR)", Case Analysis (2025). Not stated on the face of the ruling (ELRC Garnishee proceedings arising from claim against the respondent/Judgment Debtor). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/801/eng@2025-03-12

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