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Court of AppealDismissedNot stated in the judgment (second appeal from Nairobi, Commercial and Tax Division)

Toddy Civil Engineering Limited v Adkins Equipment Supplies Limited (Civil Appeal 535 of 2019) [2025] KECA 988 (KLR)

Court of Appeal of Kenya
30 May 2025
1,978 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Court of Appeal dismissed Toddy Civil Engineering's appeal, confirming that simply denying a debt without proof of payment is not a defence in Kenya.

What this practically means

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Executive summary

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This was a second appeal by Toddy Civil Engineering Limited against a High Court judgment of P.J. Otieno, J. delivered on 13th September 2019, which had set aside the trial magistrate's dismissal of a claim by Adkins Equipment Supplies Limited for Kshs.2,850,000 for unpaid sand deliveries. The claim arose from an oral contract under which the respondent supplied sand at Kshs.25,000 per lorry load. The parties consented at trial to determine the dispute on filed documents without calling witnesses. Only the respondent filed documents: delivery notes showing 114 unpaid loads, invoices and a bank statement. The appellant, which admitted the contract and deliveries but pleaded that it had paid in full, filed no documents. The High Court, applying Ragbit Singh Chatte, found the defence a mere denial and invoked section 112 of the Evidence Act on facts of special knowledge. The Court of Appeal framed two issues: whether the Judge erred in finding no sufficient defence, and whether the respondent's case stood uncontroverted. The Court held the appellant's defence was evasive and unsupported by any evidence of payment, and that the respondent's documentary case was uncontroverted. The appeal was dismissed with costs to the respondent. The decision binds lower courts on the insufficiency of bare denials and proof of payment pleadings.

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 erred when he found that, on the evidence, the appellant had no sufficient defence to the respondent's claim
  2. 2.Whether the respondent's case stood uncontroverted

Key legal issues

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01

Sufficiency of a defence consisting of a bare denial of indebtedness

Holding

The appellant's defence that it had paid for all sand delivered was evasive and insufficient because it was unsupported by any witness statement or documentary proof of payment

Reasoning

The appellant admitted the contract and deliveries of sand but pleaded payment without tendering any evidence of it. The respondent's claim was supported by witness statements, delivery notes, invoices and a bank statement, unchallenged since no witnesses were called under the parties' consent. Relying on Ragbit Singh Chatte, the Court held a mere denial without reasons is not a sufficient defence and a party alleging payment must prove it.

p. 4
02

Whether the respondent's documentary case stood uncontroverted on the agreed documents-only mode of trial

Holding

Because the parties agreed to decide the dispute on filed documents without calling witnesses, and only the respondent filed documents evidencing delivery and outstanding payment, the respondent's case was uncontroverted and proved

Reasoning

The consent regime meant no cross-examination would test the documents. The respondent filed delivery notes showing 114 unpaid lorry loads at Kshs.25,000 each, totalling Kshs.2,850,000, plus a bank statement of payments. The appellant filed no documents at all. The High Court was therefore right to allow the claim, and the Court of Appeal found no error in that conclusion.

p. 4

Legal principles established

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  • A second appellate court confines itself to matters of law unless the courts below considered matters they should not have, failed to consider matters they should have, or the decision is perverse
  • A mere denial of liability without reasons is not a sufficient defence; a defendant must answer the point of substance and, where payment is alleged, must prove it
  • Where a party denies an allegation in a pleading, the denial must not be evasive but must answer the point of substance

Court orders

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  1. 1.Appeal dismissed
  2. 2.Costs of the appeal awarded to the respondent

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 Milimani, Nairobi
Not stated in the judgment
Jurisdiction invoked
Second appeal to the Court of Appeal under the applicable appellate framework; the judgment identifies the matter simply as 'a second appeal' without citing the specific provision

Relief refused

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Allowance of the appeal, setting aside of the High Court judgment and reinstatement of the trial court's judgment

The defence was merely evasive and did not answer the pleaded and documented case of the respondent

p. 4

Costs

Appeal dismissed with costs to the respondent

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 find no merits in the appeal, and therefore dismiss it, with costs to the respondent.
p. 4Final orders - dismissal of appeal with costs
we hold the considered view that the defence put forward by the appellant was merely evasive. It did not answer the case which had pleaded, and which had been supported with both a witness statement as well as with documents.
p. 4Evasive denial is not a sufficient defence
First of all, a mere denial is not suficient defense in this type of case. There must be some reason why the defendant does not owe the money.
p. 4Mere denial rule adopted from Ragbit Singh Chatte
We shall confine ourselves 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. 1Second appeal limited to matters of law

Issues in the judgment

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minor

The judgment states the statement of defence was filed on 14th June 2015, which predates the plaint and the ex-parte judgment of 22nd June 2016; the date appears to be an error in the judgment

minor

In paragraph 16 the judgment states it was the appellant's case that it had paid for all the sand, but refers to it as 'the respondent's case', an internal drafting inconsistency

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, "Toddy Civil Engineering Limited v Adkins Equipment Supplies Limited (Civil Appeal 535 of 2019) [2025] KECA 988 (KLR)", Case Analysis (2025). Not stated in the judgment (second appeal from Nairobi, Commercial and Tax Division). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/988/eng@2025-05-30

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