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ELRCDismissedNot stated in the judgment (memorandum of claim filed 21 January 2016)

Balo v Babs Security Services Limited (Cause 24 of 2016) [2024] KEELRC 1555 (KLR)

Employment and Labour Relations Court
13 June 2024
1,257 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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Babs Security Services Limited, the respondent in an employment claim in which ex parte interlocutory and final judgments were entered against it on 9 December 2016, filed an application dated 23 April 2024 in the Employment and Labour Relations Court at Mombasa seeking stay of execution, setting aside of the ex parte judgment, cross-examination of the process server, and leave to file its response out of time. The application was anchored on Rule 13(4) and 16(1) of the Industrial Court (Procedure) Rules, 2010, which the claimant pointed out were obsolete, proceedings now being governed by the Employment and Labour Relations Court (Procedure) Rules, 2016. The court held that service had been properly effected: the process server's Affidavit of Service showed summons were signed and stamped by the respondent's secretary/receptionist, satisfying Rule 12, which permits service on a corporate body through its secretary, director or principal officer or by leaving pleadings at the registered office. The court further held that an applicant seeking to set aside an ex parte judgment must demonstrate a reasonable defence raising triable issues. The respondent's draft response comprised mere denials, lacked the work records required under Section 10(6) and (7) of the Employment Act, 2007, and contained an unparticularized counterclaim. Applying Raghbir Singh Chatte, the court found a general traverse insufficient and declined to reopen the case. The application was dismissed with costs to the claimant.

Questions the Court framed

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

  1. 1.Whether the application founded on Rule 13(4), 16(1) of the Industrial Court (Procedure) Rules, 2010 (obsolete rules) was competent
  2. 2.Whether the respondent was properly served with summons, warranting the ex parte interlocutory judgment and final judgment of 9 December 2016
  3. 3.Whether the ex parte judgment should be set aside and the respondent granted leave to file its response out of time
  4. 4.Whether the process server should be summoned for cross-examination on the Affidavit of Service
  5. 5.Whether the respondent has a reasonable defence raising triable issues

Key legal issues

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01

Validity of the application founded on obsolete rules

Holding

The application cited Rule 13(4), 16(1) of the Industrial Court (Procedure) Rules, 2010, which are obsolete; however the court went on to consider the application on its merits since the substantive provisions are word for word similar to the 2016 Rules

Reasoning

The claimant objected that the 2010 Industrial Court Rules no longer govern, as proceedings are now regulated by the Employment and Labour Relations Court (Procedure) Rules, 2016. The court noted the objection but found that even if the 2010 Rules applied, the service provisions are identical in substance, so the court determined the issues at hand rather than dismissing outright on that ground.

p. 3
02

Whether service on the respondent was proper

Holding

Service was proper: the summons stamped and received by the secretary/receptionist Maggie at the respondent's offices satisfied Rule 12 of the ELRC (Procedure) Rules, 2016

Reasoning

The Affidavit of Service showed the process server effected service and the summons was signed and stamped by the secretary/receptionist. Under Rule 12, service on a corporate body may be effected on the secretary, director or principal officer, or by leaving the pleadings at a conspicuous place at the registered office. By accepting and stamping the summons at its offices, service was validly effected.

p. 3
03

Whether the ex parte judgment should be set aside and leave to defend granted

Holding

No: the respondent failed to show a reasonable defence, its draft response being mere denials lacking the employment records required under Section 10(6) and (7) of the Employment Act, 2007

Reasoning

The court applied the settled test that an applicant seeking to set aside an ex parte judgment must show a defence raising triable issues. The 9-paragraph draft response consisted of mere denials and an unparticularized counterclaim, contrary to Section 10(6) and (7) of the Employment Act, 2007 and the principle in Raghbir Singh Chatte that a general traverse is insufficient. Reopening the case would be a wild goose chase.

p. 3
04

Whether the process server should be summoned for cross-examination

Holding

No: service being proper and the judgment having addressed the claim on the merits, the orders sought were not justified

Reasoning

The court had already found service proper under Rule 12. Since service was validly effected and the earlier judgment satisfied itself on service before proceeding, there was no basis to summon the process server for cross-examination on the Affidavit of Service.

p. 3

Legal principles established

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  • Service on a corporate body may be effected on its secretary, director or principal officer, or by leaving pleadings at a conspicuous place at the registered office
  • An application to set aside an ex parte judgment must demonstrate a reasonable defence raising triable issues; a mere general traverse is insufficient

Court orders

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  1. 1.The application dated 23 April 2024 was dismissed
  2. 2.Costs of the application awarded to the claimant

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court (Procedure) Rules, 2016 (original employment and labour relations jurisdiction)

Relief refused

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Leave for Ngigi Karomo & Associates Advocates to come on record for the respondent

The entire application was found devoid of merit and dismissed

p. 3

Temporary stay of execution against the claimant's attachment of the respondent's proclaimed movable assets

The entire application was found devoid of merit and dismissed

p. 3

Setting aside the ex parte interlocutory judgment and final judgment of 9 December 2016

Service was proper and the respondent's draft response was a mere general traverse with no work records

p. 3

Summoning of the process server for cross-examination on the Affidavit of Service

Service was proper under Rule 12 of the ELRC (Procedure) Rules, 2016, so the orders were not justified

p. 3

Leave to file response to the claim out of time

The draft response contained mere denials and no work records required under Section 10(6) and (7) of the Employment Act; reopening would be a wild goose chase

p. 3

Costs

Dismissed with costs to the claimant

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.

Application dated 23 April 2024 is devoid of any merit and is hereby dismissed with costs to the claimant.
p. 3Final orders - dismissal of the application
Service upon the secretary, director or principal officer of the corporation is allowed.
p. 2Service on corporate bodies
at the heart of an application seeking to set aside an ex-parte judgment is that the respondent has a good response to the claim and if locked out of court will be prejudiced and unable to ventilate the same.
p. 3Test for setting aside ex parte judgment
a mere denial or general traverse in defence is not sufficient and a defendant who does not specifically plead to all the issues raised in a plaint risks the probability of his defence being struck out
p. 3Insufficiency of general traverse (Raghbir Singh Chatte)

Issues in the judgment

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minor

The judgment does not state the cause/file number of the claim or the name of the claimant

minor

The application is premised on provisions of the repealed Industrial Court (Procedure) Rules, 2010, which the judgment notes are obsolete

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, "Balo v Babs Security Services Limited (Cause 24 of 2016) [2024] KEELRC 1555 (KLR)", Case Analysis (2024). Not stated in the judgment (memorandum of claim filed 21 January 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1555/eng@2024-06-13

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