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Court of AppealDismissedCivil Appeal No. 228 of 2008

Kenneth K. Mwangi v City County of Nairobi & 2 others [2017] KECA 434 (KLR)

Court of Appeal of Kenya
14 July 2017
4,941 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~20 min to read original · ~4 min brief

The bottom line

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The Court of Appeal dismissed a landowner's late challenge to a rates judgment, confirming courts rarely undo sales already transferred to innocent third parties.

What this practically means

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Executive summary

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The Court of Appeal (Makhandia, Ouko & Murgor, JJ.A) dismissed the appellant's second appeal against the High Court (Visram, J) judgment of 7th July 2005, which had refused to set aside an ex parte judgment entered against him in rates proceedings brought by the City County of Nairobi. The ex parte judgment had been executed: the suit property on Kirinyaga Road was sold and transferred to the second respondent, later charged to the interested party bank for a Kshs 25 million loan, and ultimately sold again to a further third party not joined to the appeal. The Court confined itself, as a second appeal, to matters of law, identifying only two such issues: the exercise of discretion by the courts below and the striking out of the appellant's undated affidavit. Applying United India Insurance, it held the courts below properly exercised their discretion in refusing to set aside the judgment, given the execution, transfer to non-parties, risk of futile orders and prejudice. It upheld the striking out of the undated affidavit, holding the dating requirement in section 5 of the Oaths and Statutory Declarations Act mandatory, while observing that under the current constitutional dispensation a different conclusion might be reached. The Court declined to entertain new grounds on the Resident Magistrate's Court's jurisdiction to issue a vesting order and on Article 159, raised for the first time on appeal without leave, noting the proceedings pre-dated the current Constitution. The appeal was dismissed with 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 two courts below properly exercised their discretion in refusing to set aside the ex parte judgment
  2. 2.Whether the High Court was right to strike out the undated affidavit in support of the application to set aside the ex parte judgment
  3. 3.(Raised for the first time on appeal) Whether the Resident Magistrate's Court had jurisdiction to issue a vesting order affecting title to land
  4. 4.(Raised for the first time on appeal) Whether Article 159 of the Constitution required the High Court to decide on substance rather than technicality

Key legal issues

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01

Exercise of discretion in setting aside an ex parte judgment

Holding

The two courts below properly exercised their discretion in refusing to set aside the ex parte judgment, having considered that the decree had been executed, the property transferred to a third party not joined to the proceedings, the risk of making orders in vain, prejudice, and the interest of justice.

Reasoning

Setting aside a default judgment is discretionary. Applying the principles in United India Insurance, the appellate court will not interfere absent misdirection in law, misapprehension of facts, consideration of irrelevant matters, failure to consider relevant matters, or a plainly wrong decision. Here the courts below relied on relevant considerations: execution of the decree, transfer to a third party who was not a party, orders in vain, and prejudice. Had the appellant joined the purchaser, different considerations might have applied.

p. 6
02

Undated affidavit and striking out at first appellate stage

Holding

The High Court was entitled to entertain the competency of the undated affidavit on first appeal (a rehearing on matters of law), and the mandatory dating requirement under section 5 of the Oaths and Statutory Declarations Act rendered the affidavit incompetent; without it the application was left bare.

Reasoning

A first appeal is a rehearing in which the court may re-examine the material before the Magistrate's Court. The issue was one of law. The affidavit's dating requirement under section 5 is mandatory ('shall'). Although the decision pre-dated the current Constitution and the overriding objective, and a different conclusion might be reached today, the judge cannot be faulted for applying the law as it then stood.

p. 7
03

New issues raised for the first time on appeal

Holding

The Court declined to entertain the arguments on the Resident Magistrate's Court's jurisdiction to issue a vesting order and on Article 159 of the Constitution, raised for the first time on appeal without leave.

Reasoning

A litigant is precluded from taking a completely new point of law for the first time on appeal, absent illegality or want of jurisdiction in the proceedings below. The issues were not among the filed grounds of appeal and no leave was sought. Further, the proceedings below pre-dated the current Constitution, so Article 159 did not assist the appellant.

p. 5
04

Mode of service of summons

Holding

Personal service is not the only effective mode of service; service may be effected on an agent or an adult member of the defendant's family. The appellant's failure to rebut the process server's affidavit of service or seek cross-examination weighed against him.

Reasoning

The court endorsed the High Court's statement of the law on service. Even if the courts below had addressed service fully, the appellant, who knew the person served as his tenant, neither swore a countering affidavit nor requested the process server for cross-examination. The point did not avail him on a second appeal confined to law.

p. 7

Legal principles established

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  • In a second appeal, the Court of Appeal is confined to matters of law only.
  • An appellate court will not interfere with the exercise of discretion by a lower court unless the judge misdirected himself in law, misapprehended the facts, took into account irrelevant considerations, failed to take into account relevant considerations, or the decision is plainly wrong.
  • A litigant is generally precluded from taking a completely new point of law for the first time on appeal.
  • Service of summons need not be personal to be effective; service may be effected on an agent or an adult member of the defendant's family.
  • An undated affidavit offends section 5 of the Oaths and Statutory Declarations Act, whose mandatory dating requirement is conveyed by the word 'shall', and a defective affidavit, if struck out, leaves the application bare.

Court orders

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  1. 1.Dismissal of the appeal
  2. 2.Costs of the appeal to the respondents

The bench

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

majority
William Ouko
W. OukoJA
Currently serving
majority
majority
On appeal from
High Court of Kenya at Nairobi
H.C.C.A. No. 232 of 1996
Jurisdiction invoked
Second appeal to the Court of Appeal under the applicable appellate framework, confined to matters of law only

Relief refused

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Setting aside of the ex parte judgment, the vesting order and reinstatement of the appellant's title

The exercise of discretion by the two courts below was sound: the decree had been executed, the property sold and transferred to third parties, and orders made would be in vain; further, new grounds raised for the first time on appeal were not entertained

p. 7

Leave to argue new issues (jurisdiction of the Resident Magistrate's Court and Article 159) for the first time on appeal

No leave sought or obtained and the issues were not among the grounds of appeal; proceedings pre-dated the current Constitution

p. 5

Costs

The appeal was dismissed with costs to the respondents.

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.

On the whole, we are satisfied that this Appeal is bereft of merit and the same is for dismissal with costs. It is so ordered.
p. 7Final orders - dismissal of the appeal with costs
The Court of Appeal is only entitled to interfere if one or more of the following matters are established: first, that the judge misdirected himself in law; secondly, that he misapprehended the facts;
p. 6Principles for interfering with discretionary decisions
In general a litigant is precluded from taking a completely new point of law for the first time on appeal.
p. 5New points on appeal
This court in a second appeal, confines itself to matters of law unless it is shown that the two courts below considered matters they should not have considered or failed to consider matters they should have considered or looking at the entire decision, it is perverse.
p. 4Scope of a second appeal
just because the service was not ‘personal’ did not necessarily render the same ineffective in law
p. 7Modes of service of summons
There is no doubt at all that the use of the word “shall” connotes the mandatory nature of the requirement.
p. 7Mandatory dating of affidavits under the Oaths and Statutory Declarations Act

Issues in the judgment

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minor

The judgment records contradictory dates for the sale of the suit property, stating it was sold and transferred on 25th December 1995 in one passage and 15th December 1995 in another.

minor

The appellant's written submissions describe Nyayo Bus Services as a [1969] case while the citation given is C.A. No. 172 of 1998; the judgment reproduces this inconsistency without resolving it.

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, "Kenneth K. Mwangi v City County of Nairobi & 2 others [2017] KECA 434 (KLR)", Case Analysis (2017). Civil Appeal No. 228 of 2008. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2017/434/eng@2017-07-14

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