Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Appeal No. 108 of 2016

Benson Kakai Namisi & another v Stufford Mukasa Namisi & another [2020] KECA 531 (KLR)

Court of Appeal of Kenya
10 July 2020
2,872 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

#

The Court of Appeal confirmed that parties bound by a consent order to arbitrate cannot later challenge the arbitrator's jurisdiction, and awards must be challenged under the correct procedure.

What this practically means

#

Executive summary

#
This Court of Appeal at Kisumu appeal arose from a long-running family land dispute between brothers over Land Parcel Ndivisi/Ndivisi/1117. The Western Provincial Land Disputes Appeals Committee's award, adopted by the Bungoma Senior Magistrate's Court, directed the appellants to surrender two acres to the 1st respondent. By consent, the parties set aside the decree and referred the dispute to arbitration before a panel chaired by the Sub-County Commissioner with elders and the area chief, with the award to be filed within 60 days. Dissatisfied with the award, the appellants sought review and setting aside in the High Court. Mukunya, J dismissed the application, holding that an award under Order 46 could only be set aside under rule 16 for corruption, misconduct or fraud, none of which was substantiated, and that no proper application under Order 46 existed. On appeal, Asike-Makhandia, JA held that the consent order bound the parties and conferred jurisdiction on the arbitrator, so the jurisdictional challenge failed. He further held that the appellants' review application under Order 45 was incompetent because Order 45 does not apply to arbitral awards, no self-evident error was demonstrated, and the limitation period had lapsed. The court affirmed the High Court ruling and dismissed the appeal with costs. The judgment was delivered under rule 32(3) of the Court of Appeal Rules because Odek, JA died before delivery; Kiage, JA concurred.

Questions the Court framed

#

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

  1. 1.Whether the learned judge erred in declining to review and set aside the arbitral award
  2. 2.Whether the arbitrators had jurisdiction to make the award
  3. 3.Whether the appellants properly moved the court to set aside the arbitral award

Key legal issues

#
01

Effect of a consent order referring a dispute to arbitration

Holding

The consent order bound the parties and conferred jurisdiction on the arbitrator; the appellants could not thereafter challenge the arbitrator's jurisdiction.

Reasoning

The court applied the principle that a consent judgment or order can only be interfered with on grounds that would justify varying or rescinding a contract between parties. The appellants themselves participated in drawing the consent fixing the panel and the 60-day timeline for the award. Having failed to demonstrate fraud, collusion or any ground justifying rescission of a contract, their attack on the arbitrator's jurisdiction had no merit or basis.

p. 3
02

Correct procedural vehicle for setting aside an arbitral award

Holding

An application for review under Order 45 was incompetent; challenges to an arbitral award must be brought under Order 46, and the limitation period for such a challenge had lapsed.

Reasoning

The appellants grounded their application on Order 45(1), which governs review of decrees and orders of the court on discovery of new and important matter or error apparent on the face of the record. The court held that Order 45 does not apply to arbitral awards referred under Order 46(1). Further, the High Court had correctly noted that an award under Order 46 can only be set aside under rule 16 on grounds of corruption, misconduct or fraud, none of which was substantiated.

p. 3

Legal principles established

#
  • A consent order referring a dispute to arbitration binds the parties and cannot be set aside except on grounds that would justify setting aside a contract; parties cannot challenge the jurisdiction of an arbitrator over issues they themselves referred to arbitration.
  • Order 45 of the Civil Procedure Rules does not apply to the setting aside or review of an arbitration award; the correct route is Order 46.

Court orders

#
  1. 1.Appeal dismissed with costs
  2. 2.Ruling of the High Court delivered on 29th September 2016 in Bungoma HC Misc. Application No. 213 of 2004 affirmed and upheld
  3. 3.Judgment delivered pursuant to rule 32(3) of the Court of Appeal Rules since Odek, JA passed on before delivery

The bench

#

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

majority

Wrote the judgment

KI
concurring

Wrote the judgment

Kiage, JA wrote a short concurring judgment wholly agreeing with the analysis and conclusions of Asike-Makhandia, JA with nothing useful to add.

I have had the benefit of reading in draft the Judgment of my learned brother Makhandia, J.A. I wholly agree with his analysis and concur in his conclusions with nothing useful to add.p. 4
majority
On appeal from
High Court of Kenya at Bungoma
Bungoma Misc. Application No. 213 of 2004
Jurisdiction invoked
First appeal to the Court of Appeal under the Court of Appeal Rules; judgment delivered pursuant to rule 32(3) of the Court of Appeal Rules following the death of Odek, JA

Relief refused

#

Review and setting aside of the arbitral award

The application was grounded on Order 45 which does not apply to setting aside an arbitral award referred under Order 46; no self-evident error was demonstrated and the limitation period had lapsed

p. 3

Challenge to the jurisdiction of the arbitrator

The parties themselves conferred jurisdiction on the arbitrator through the consent order, which can only be set aside on grounds justifying rescission of a contract

p. 3

Costs

Appeal dismissed with costs to the 1st respondent

Quotable passages

#

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

For the foregoing reasons, I find that this appeal has no merit. I would affirm and uphold the ruling by the learned judge delivered on 29 th September 2016 in Bungoma HC Misc. Application No. 213 of 2004. The upshot is that this appeal should be dismissed with costs.
p. 4Disposition
The parties through the consent order conferred jurisdiction upon the arbitrator to determine the dispute.
p. 3Consent and arbitral jurisdiction
Order 45 of the Civil Procedure Act does not apply to setting aside or review of an arbitration award when the dispute was referred to arbitration by the court pursuant to Order 46 (1) of the Civil Procedure Rules.
p. 3Incompetence of review application
This being a first appeal, it is my duty to analyze and re-assess the evidence on record and reach my own conclusions.
p. 3Duty of first appellate court

Issues in the judgment

#
minor

The judgment contains a typographical error in the quoted Selle passage, garbling the text

minor

The judgment is internally ambiguous as to whether the reference to arbitration was by consent of the parties or by the court, in the passage on Order 46

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Benson Kakai Namisi & another v Stufford Mukasa Namisi & another [2020] KECA 531 (KLR)", Case Analysis (2020). Civil Appeal No. 108 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/531/eng@2020-07-10

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