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ELRCDismissedNot stated in the judgment· [2025] KEELRC 2395 (KLR)

Chabra v Bhogals Garage Limited (Cause E105 of 2024) [2025] KEELRC 2395 (KLR)

Employment and Labour Relations Court
29 August 2025
JRJames Rika
839 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employment court refused to delay an employer's defence because pending KRA investigations don't excuse late filing of a Statement of Response.

What this practically means

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Executive summary

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The Respondent, through an application dated 28th January 2025 supported by the affidavit of its Director, Harbinder Singh Bhogal, sought a 12-week extension of time to respond to a Statement of Claim filed on 20th January 2025 and served on 23rd January 2025. The Respondent, whose former Managing Director the Claimant alleged was constructively dismissed on 7th January 2022, argued that ongoing Kenya Revenue Authority investigations into alleged tax fraud and a separate external audit were necessary to uncover the Claimant's role before it could respond. The Claimant opposed, contending that KRA audits are routine, that the Respondent's accounts had been audited by external auditors PKF at the material time and the report shared with the Respondent and KRA, and that the Respondent had over three years to gather evidence; the application was said to be an obfuscation. The court determined the application on affidavits and submissions. It held that the Respondent had had adequate time to investigate, that a Statement of Response under Rule 29(2) need not contain evidence, and that under Rule 32(4) evidence in pleadings is optional and documents can be introduced later before hearing. It emphasised the court's duty to conclude claims expeditiously and noted the Respondent had already had over eight months, far exceeding the 12 weeks sought. The application was declined, the Respondent was given 14 days to file and serve its Statement of Response failing which the Claim proceeds to formal proof, and costs were awarded in the cause.

Key legal issues

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01

Whether pending KRA investigations and audits justify extension of time to file a Statement of Response

Holding

No - the Respondent had over 3 years since the alleged constructive dismissal and over 8 months since service; pleadings need not include evidence

Reasoning

The court noted the accounts had been audited by external auditors (PKF) while the Claimant was at the helm, and the report was shared with the Respondent and KRA. Rule 29(2) outlines the contents of a Statement of Response which does not include evidence, and Rule 32(4) makes evidence in pleadings optional. Documents can be introduced later before hearing. The court also stressed its duty to hear and conclude claims expeditiously.

p. 2
02

Whether the court has power to extend time under the E&LRC (Procedure) Rules, 2024

Holding

Yes - Rules 29(5) and 80 permit the court to extend time on application or on its own motion, but the discretion was not exercised in the Respondent's favour

Reasoning

The court acknowledged the power to extend or reduce time for a responding party and to extend any prescribed time, but found that the Respondent had already had time far exceeding the 12 weeks sought, and that the justifications offered did not merit the indulgence.

p. 1

Legal principles established

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  • A Statement of Response need not contain evidence; documents can be introduced later before the claim is scheduled for hearing
  • Failure to file a Statement of Response within the prescribed time exposes the defaulting party to formal proof

Court orders

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  1. 1.The application dated 28th January 2025 filed by the Respondent is declined
  2. 2.The Respondent shall file and serve its Statement of Response within 14 days of delivery of this Ruling, in default, the Claim is scheduled for formal proof
  3. 3.Costs in the cause
Jurisdiction invoked
Employment and Labour Relations Court (Procedure) Rules, 2024, Rules 29, 80 and 68(5)

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, "Chabra v Bhogals Garage Limited (Cause E105 of 2024) [2025] KEELRC 2395 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2395/eng@2025-08-29

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