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Case Brief · caselaw.co.ke
Court of AppealPartially AllowedCivil Appeal No. 107 of 2013

Kenya Commercial Bank Ltd v Samson Keengu Nyamweya [2019] KECA 892 (KLR)

Court of Appeal of Kenya
8 March 2019
1,484 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~6 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal restored KCB's Kshs 25 million lawsuit because the bank was never given notice before a judge dismissed it for delay.

What this practically means

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Executive summary

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This was an appeal by Kenya Commercial Bank Ltd against a ruling of the High Court (Kimondo, J) dated 10th February 2012 dismissing its suit, HCCC No. 474 of 2005, for want of prosecution under Order 17 Rule 2 of the Civil Procedure Rules, 2010. The suit sought Kshs. 25,574,472.90 with interest at 21% per annum on a bridging loan allegedly defaulted on by the respondent. The bank's advocate discovered by chance that the suit was listed for dismissal, appeared in court, and asked for time to file an affidavit explaining the delay - the firm's file had been locked in the drawer of a deceased advocate - but the Judge dismissed the suit without affording that opportunity. The appellant argued that no prior notice was served as required under Order 17 Rule 2(1), that it was denied a fair hearing under Articles 25 and 50 of the Constitution, that the delay was excusable, and that it should not suffer for counsel's mistake. The Court of Appeal, applying the Ivita v Kyumbu test as adopted in Moses Muriira Maingi, held that the Judge failed to consider the question of prejudice and whether justice could still be done despite the delay. It also credited the uncontested claim that no prior notice was served, noting the respondent himself was absent on the dismissal date. Applying the Mbogo v Shah principle, the Court found the Judge failed to consider matters he should have considered. The appeal was allowed, the ruling of 10th February 2012 was set aside in its entirety, the appellant was given 30 days to fix the suit for hearing, and the costs of the appeal were made to abide the outcome of the suit in the High Court.

Questions the Court framed

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

  1. 1.Whether the High Court properly exercised its discretion in dismissing the appellant's suit for want of prosecution under Order 17 Rule 2 of the Civil Procedure Rules
  2. 2.Whether the failure to serve prior notice under Order 17 Rule 2(1) before dismissing the suit vitiated the dismissal and breached the appellant's right to a fair hearing

Key legal issues

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01

Whether the High Court properly exercised its discretion in dismissing the suit for want of prosecution

Holding

The discretion was wrongly exercised because the Judge did not apply the Ivita v Kyumbu principles, in particular the question of prejudice and whether justice could still be done despite the delay.

Reasoning

The Court of Appeal held that in dismissing a suit for want of prosecution the court exercises judicial discretion governed by the Ivita v Kyumbu test: whether the delay is prolonged and inexcusable and, if so, whether justice can still be done despite the delay. The High Court ruling only observed that the suit had not been fixed for hearing and rejected the oral explanation, without considering prejudice to either party. Because the Judge failed to take into account matters he should have considered, the appellate court was entitled to interfere with and set aside the dismissal.

p. 2
02

Whether the absence of prior notice under Order 17 Rule 2(1) invalidated the dismissal and breached the right to a fair hearing

Holding

The uncontested failure to serve prior notice, evidenced by the respondent's own absence from court on the dismissal date, gave credence to the appellant's claim and supported setting aside the dismissal.

Reasoning

The respondent tacitly acknowledged that no notice was served as required under Order 17 Rule 2(1). The appellant's advocate only stumbled upon the matter on the daily cause list and was denied the chance to file an affidavit showing cause against dismissal. The Court found this uncontested claim credible, noting that the respondent was himself not represented on the dismissal date, presumably because he too had no notice. This compounded the erroneous exercise of discretion and warranted appellate interference.

p. 2

Legal principles established

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  • Before dismissing a suit for want of prosecution under Order 17 Rule 2, the court must apply the Ivita v Kyumbu principles, including considering whether the defendant will suffer prejudice and whether justice can still be done despite the delay
  • A court may interfere with an exercise of discretion where the lower court failed to take into consideration matters which it should have taken into consideration
  • Prior written notice under Order 17 Rule 2(1) is required before a suit may be dismissed for want of prosecution; dismissal without such notice vitiates the order

Court orders

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  1. 1.The appeal is allowed
  2. 2.The ruling of the lower court given on 10th February 2012 is set aside in its entirety
  3. 3.The appellant shall take steps, within 30 days from the date of delivery of the judgment, to have the suit in the High Court fixed for hearing
  4. 4.The costs of the appeal shall abide by the outcome of the suit in the High Court

The bench

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

majority
majority
majority
On appeal from
High Court of Kenya at Nairobi
HCCC No. 474 of 2005
Jurisdiction invoked
First appellate jurisdiction over the High Court under the Constitution and the Appellate Jurisdiction Act (not expressly stated in the judgment; appeal from the ruling of the High Court)

Relief refused

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Immediate costs of the appeal against the respondent

Costs were made contingent on the outcome of the suit in the High Court rather than awarded outright

p. 2

Costs

The costs of this appeal shall abide by the outcome of the suit in the High Court.

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.

We accordingly allow the appeal, set aside the ruling of the lower court given on 10th February 2012 in its entirety. The appellant shall take steps, within 30 days from the date of delivery of this judgment, to have the suit in the High court fixed for hearing.
p. 2Final orders - appeal allowed and dismissal set aside
The costs of this appeal shall abide by the outcome of the suit in the High Court.
p. 2Costs order
Thus, even if delay is prolonged if the court is satisfied with the plaintiff’s excuse for the delay and that justice can still be done to the parties notwithstanding the delay the action will not be dismissed
p. 2Ivita v Kyumbu test for dismissal for want of prosecution
we are satisfied that this is a proper case for us to interfere with the decision of the learned Judge, as, to use the words of Sir Clement De Lestang, VP, in Mbogo & another v Shah (above) the lower court “…failed to take into consideration matters which it should have taken into consideration…”
p. 2Appellate interference with discretionary decisions

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, "Kenya Commercial Bank Ltd v Samson Keengu Nyamweya [2019] KECA 892 (KLR)", Case Analysis (2019). Civil Appeal No. 107 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/892/eng@2019-03-08

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