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Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Application No. 48 of 2018· [2019] KECA 837 (KLR)

Juja Coffee Exporters Ltd & 2 others v Bank of Africa Ltd & 2 others

Court of Appeal
7 March 2019
2,315 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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Kenya's Court of Appeal refused to stop a bank selling charged Mombasa plots, because the same injunction request had already been decided, and courts won't relitigate old fights.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Mombasa (Visram, Karanja and Kiage, JJ.A) on a motion dated 11th April 2018 brought under Rule 5(2)(b) of the Court of Appeal Rules, in which Juja Coffee Exporters Ltd, TSS Transporters Ltd and TSS Investment Ltd sought a temporary injunction pending an intended appeal against the ruling of Njoki Mwangi, J. of 5th April 2018 in HCCC No. 57 of 2016, which struck out their injunction application as res judicata and an abuse of process. The applicants sought to restrain Bank of Africa Ltd from exercising its statutory power of sale over several Mombasa Island plots charged to the Bank. The Bank opposed, arguing the intended appeal was not arguable, that the identical injunction application had already been litigated, and that the applicants lacked locus standi regarding the property of the third respondent, said to be deceased. The Court applied the settled two-limb Rule 5(2)(b) test: an applicant must show an arguable appeal and that the appeal would be rendered nugatory. On arguability, the Court noted that an identical application had been determined by the same Judge on 21st July 2016, and that upon consolidated appeals the Court of Appeal (Waki, Karanja and Koome, JJ.A) had on 25th January 2018 allowed the Bank's appeal, set aside the injunction and dismissed the applicants' application. The Judge, bound by that decision under the doctrine of precedent, was held to have been justified in upholding the res judicata objection. Finding no arguable appeal, the Court declined to consider the nugatory limb and dismissed the motion with costs.

Key legal issues

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01

Whether the intended appeal was arguable

Holding

The appeal was not arguable because the identical injunction application had already been heard and determined, and the Court of Appeal's judgment in Mombasa Civil Appeal No. 99 of 2016, which the Judge was bound by, made it inevitable that the preliminary objection would be upheld

Reasoning

The applicants had earlier sought identical injunction orders over the same properties, which the Judge allowed on 21st July 2016. That decision was appealed; the consolidated appeals were determined on 25th January 2018, with the Bank's appeal allowed and the injunction set aside. The Judge, bound by that precedent, was justified in upholding the res judicata objection. The applicants therefore failed the arguability limb.

p. 3
02

Whether the appeal would be rendered nugatory absent an injunction

Holding

The Court declined to consider the nugatory limb since the applicants had already failed on arguability

Reasoning

Both limbs must be satisfied. Having found no arguable appeal, the Court held that any finding on the nugatory-ness limb would not alter the outcome, and expressly declined to venture into it, consistent with settled Rule 5(2)(b) practice.

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Legal principles established

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  • An applicant under Rule 5(2)(b) must satisfy the Court on both limbs - arguability of the appeal and that the appeal would be rendered nugatory; failure on one limb is fatal
  • An arguable appeal is not one that must necessarily succeed but one that is not trifling and raises at least one bona fide point worthy of decision
  • Wider principles of res judicata apply to interlocutory applications within a suit; there must be an end to applications of a similar nature
  • High Court judges are bound by decisions of the Court of Appeal under the doctrine of precedent

Court orders

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  1. 1.The application dated 11th April 2018 is dismissed with costs to the 1st respondent
On appeal from
High Court of Kenya at Mombasa
HCCC No. 57 of 2016
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules (application for injunction pending appeal)

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, "Juja Coffee Exporters Ltd & 2 others v Bank of Africa Ltd & 2 others", Case Analysis (2019). Civil Application No. 48 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/837/eng@2019-03-07

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