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Case Brief · caselaw.co.ke
Court of AppealPartially AllowedCivil Appeal No. 231 of 2007

National Cereals & Produce Board v J. K. Muiruri (As a Receiver & Manager of) Kensack Limited & another [2010] KECA 19 (KLR)

Court of Appeal
10 December 2010
3,743 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 revived a suit a judge dismissed on his own initiative, ruling judges can only decide matters actually before them.

What this practically means

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Executive summary

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The appellant, National Cereals & Produce Board, sued J. K. Muiruri (Receiver and Manager of Kensack Limited) and Kensack Limited in HCCC No. 2947 of 1989 seeking undelivered gunny bags it had paid for. The suit was consolidated with HCCC No. 2892 of 1989 by order of Walekhwa J in 1992. Over two decades the suit generated numerous applications, most never prosecuted to conclusion. When the case finally came up for hearing before Osiemo J in March 2005, the appellant sought adjournments, raised a preliminary objection, and then filed an application seeking a stay of its own case pending an intended appeal against the Judge's order directing the suit to proceed on its own, plus a mandatory order compelling compliance with a 1995 consent order on sale proceeds. By a ruling dated 17th November 2006, Osiemo J declined the application and, invoking the court's inherent powers and the Mukisa Biscuits dictum on abuse of process, dismissed the entire suit with costs. The Court of Appeal held that the Judge was perfectly entitled to dismiss the application before him, but that he erred in dismissing the entire suit, since no application for dismissal was before him and the parties were never invited to address him on that question. Following Mbogo v Shah, the Court interfered with the discretion only to that limited extent. It set aside the dismissal of the entire suit, directed that the hearing proceed before another Judge, left the dismissal of the application standing, and ordered each party to bear its own costs.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the learned Judge was entitled to dismiss the application for stay of proceedings and for mandatory compliance with the consent order of 10th August 1995.
  2. 2.Whether the learned Judge, having dismissed the application before him, could also dismiss the entire suit for want of prosecution when no such application was before him.
  3. 3.Whether the Court of Appeal should interfere with the exercise of the trial Judge's discretion.

Key legal issues

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01

Scope of a court's discretion when disposing of an application

Holding

The Judge was entitled to dismiss the application for stay of proceedings, but could not also dismiss the entire suit, which was never a matter before him for determination.

Reasoning

The only matters canvassed were the stay application and the mandatory compliance prayer. The Judge never invited the parties to address him on dismissal for want of prosecution, and such an application had already been dismissed by Githinji J. Absent such an application or invitation, dismissing the whole suit was beyond the matters before the court and constituted an error in the exercise of discretion warranting appellate interference.

p. 5
02

Interference with judicial discretion on appeal

Holding

Although courts of appeal are slow to interfere with a trial Judge's discretionary decisions, interference is justified where the Judge acted on matters not before him.

Reasoning

Citing Mbogo v Shah, the Court acknowledged it was interfering with the Judge's discretion but did so only after exercising the caution required by law, since the Judge had decided a matter (dismissal of the suit) that no party had asked him to decide.

p. 6
03

Abuse of court process and delay

Holding

The appellant's serial unprosecuted applications and adjournment manoeuvres amounted to abuse of court process; the Judge rightly dismissed the stay application.

Reasoning

The Court traced a 21-year history of unprosecuted applications and adjournment applications by the plaintiff, including an application to stay its own case on unsatisfactory grounds. The Judge's finding that the court cannot protect a party which has taken no steps to help itself was upheld, and that part of the ruling was not disturbed.

p. 5

Legal principles established

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  • A trial Judge may only exercise discretion on matters actually before him; if he contemplates dismissal of the suit on a basis not raised by any application, he must first invite the parties to address him on it.
  • An appellate court will not interfere with a trial Judge's exercise of discretion unless the Judge misdirected himself or was clearly wrong, resulting in misjustice.
  • Justice is a two-way traffic: the court will not continue to protect a party whose inaction prejudices the other side.

Court orders

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  1. 1.The appeal against dismissal of the entire suit is allowed and that order of dismissal is set aside.
  2. 2.The hearing of HCCC No. 2947 of 1989 proceeds before any other Judge under the provisions of the Civil Procedure Act and Rules, Osiemo J. having left the service of the Judiciary.
  3. 3.The dismissal of the application for stay of proceedings stands.
  4. 4.Each party to bear its own costs.

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

majority

Wrote the judgment

Wrote the judgment

On appeal from
High Court of Kenya at Nairobi
H.C.C.C. No. 2947 of 1989
Jurisdiction invoked
First appellate jurisdiction over the High Court under the Constitution and the Civil Procedure Act (appeal from ruling and orders of the High Court).

Relief refused

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Costs of the appeal awarded to the appellant

The Court declined to award costs to the appellant despite allowing the appeal in part.

p. 6

Costs

Each party to bear its own costs.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Appeal against dismissal of the entire suit is allowed and that order is set aside.
p. 6Final orders - partial success
We order that the hearing proceeds before any other Judge under the provisions of the Civil Procedure Act and Rules as we note Osiemo J. is no longer in the service of the Judiciary.
p. 6Final orders - remission for hearing
For the reasons given above, we decline to award costs to the appellant. Each party to bear its own costs.
p. 6Costs
The concept of justice is however a two way traffic. This Court cannot continue to protect a party which has taken no step to help itself and particularly in a situation like this when its inaction is occasioning prejudice to the other side.
p. 5Delay and abuse of process
A Court of Appeal should not interfere with the exercise of the discretion of a Judge unless it is satisfied that the Judge in exercising his discretion has misdirected himself in some matter and as a result has arrived at wrong decision
p. 6Appellate interference with discretion

Issues in the judgment

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minor

The judgment refers inconsistently to the dates of Osiemo J's orders of 14th March, describing them as 'orders of 14th March 2006' in the appellant's application although the ruling was made in 2005.

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, "National Cereals & Produce Board v J. K. Muiruri (As a Receiver & Manager of) Kensack Limited & another [2010] KECA 19 (KLR)", Case Analysis (2010). Civil Appeal No. 231 of 2007. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2010/19/eng@2010-12-10

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