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Court of AppealPartially AllowedCivil Appeal No 171 of 1989· [1991] KECA 10 (KLR)

Muhindi & another v Mugendo [1991] KECA 10 (KLR)

Court of Appeal
15 January 1991
3,507 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal voided an arbitration award because the panel was wrongly constituted, a party's elder was excluded, and the award went unsigned.

What this practically means

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Executive summary

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The Court of Appeal at Kisumu (Hancox CJ, Masime and Kwach JJ A) allowed the appellants' appeal against a ruling of Omolo J dismissing their application to set aside an arbitral award in a land dispute originating in 1978. By consent the dispute had been referred to arbitration before the District Officer, Vihiga, as chairman with four elders, two nominated by each side. The defendants complained that the panel was not constituted as ordered (three elders instead of four), that elders they had nominated were prevented from sitting or participating, and that the award was signed only by the Chairman. The trial judge found these complaints well founded but, relying on a dissenting judgment of Apaloo JA in Ndegwa Wachira v Ricarda Wanjiku Ndanjeru, held that no failure of justice was occasioned. The Court of Appeal held that the constitution of an arbitration panel goes to jurisdiction and is not a mere procedural technicality; that it is misconduct to prevent a party from calling material evidence, a fortiori to exclude a party's nominated elder from sitting or participating; that signatures of the panel give the award its authenticity as a statutory delegated decision of the court, and that order 45 rule 10 is mandatory; and that although strict technical conformity with court procedure is not essential in arbitration, there must be observance of the normal rules of justice and fair play. Finding insufficient conformity with the principles of justice, the Court set aside Omolo J's judgment, allowed the objections to the award, and remitted the matter to the High Court for hearing and determination according to law.

Key legal issues

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01

Whether failure of the elders to sign the award was fatal

Holding

The failure of all panel members to sign the award was not a mere procedural defect; signatures give the award its authenticity as a statutory delegated decision of the court, and order 45 rule 10 is mandatory.

Reasoning

The trial judge, following a dissenting judgment of Apaloo JA, treated non-signature as a curable procedural defect. The court held that while legislative amendment might save an award from invalidation by one member's refusal to sign, here not one or two but all members failed to sign. Signatures authenticate what is a delegated statutory decision, and without conformity with the principles of justice the award could not stand.

p. 4
02

Whether exclusion of a party's nominated elder from the panel was misconduct

Holding

Yes. It is misconduct in the arbitration to refuse a party the right to call a material witness, and a fortiori where a member of the panel is not permitted to sit or take part.

Reasoning

The affidavit of Reuben Kagai, the only and unchallenged evidence on the point, established that one nominated elder was not allowed to sit and another not allowed to participate. The trial judge erred in rejecting that unchallenged evidence without cross-examination. Excluding one side's elder offends the normal rules of justice and fair play so that justice, even if done, is not seen to be done.

p. 1
03

The standard of procedural conformity required in court-ordered arbitrations

Holding

Strict technical conformity with court rules is not essential, but the normal rules of justice and fair play must be observed; in this case there was insufficient conformity for the award to be upheld.

Reasoning

If strict technical conformity were required, a reference to arbitration would be superfluous. However, a court-ordered reference may demand stricter conformity with judicial principles than a consensual arbitration under the Arbitration Act. Here the panel sat three instead of four elders, an elder was excluded, and the award was unsigned - defects that went beyond mere technicality.

p. 4

Legal principles established

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  • The signatures of the members of the arbitration panel give the award the authenticity it should have, as a statutory delegated decision of the court.
  • It is misconduct for an arbitrator to prevent a party from calling material evidence, and a fortiori to exclude a party's nominated panel member from sitting or taking part.
  • Strict technical conformity with court procedure is not essential in arbitration, but there must be observance of the normal rules of justice and fair play; excluding one side's elder means justice, even if done, will not be seen to have been done.
  • The constitution of an arbitration panel is not a mere procedural technicality but a fundamental matter going to the jurisdiction of the arbitrators.
  • Order 45 rule 10 requiring all persons who make an award to sign it is mandatory, and failure of all members to sign renders the award invalid.

Court orders

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  1. 1.Appeal allowed
  2. 2.Judgment of Omolo J dated April 12, 1989 set aside
  3. 3.The objections to the award as stated in the affidavits in support of the chamber summons dated June 9 and filed on June 23, 1987 allowed
  4. 4.The matter remitted to the High Court for hearing and determination according to law
On appeal from
High Court
HCCC No 87 of 1978
Jurisdiction invoked
Appeal from the High Court under the Court of Appeal's appellate jurisdiction (second appeal from a ruling on an application to set aside an arbitral award)

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, "Muhindi & another v Mugendo [1991] KECA 10 (KLR)", Case Analysis (1991). Civil Appeal No 171 of 1989. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1991/10/eng@1991-01-15

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