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ELRCDismissedNot stated in judgment

Nyamai v Naivasha Rocky Eco-Lodge aka Rocky Resort; Elima Art Depot Limited (Objector) (Employment and Labour Relations Cause E003 of 2023) [2024] KEELRC 1862 (KLR)

Employment and Labour Relations Court
17 July 2024
825 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~3 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed it can enforce its own judgments even against company directors, dismissing a jurisdictional challenge with costs.

What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court (Wasilwa J) determined a preliminary objection dated 12 June 2024 raised by the Respondent Judgment Debtor, who contended that the court lacked jurisdiction to make further orders under a Notice to Show Cause issued against him under Section 3(1) of the Companies Act, that section being merely a definitions provision, and that only the High Court handles company matters including the lifting of the corporate veil. The court held that the underlying matter is an employment claim and that, in execution, the ELRC has the same powers as the High Court under the Civil Procedure Act, as reinforced by Rule 32 of the ELRC (Procedure) Rules. Relying on Article 162(2) of the Constitution and the decision of Majanja J in USIU v Attorney General, the court affirmed its status as a court equal to the High Court with jurisdiction over employment and labour relations matters and incidental enforcement powers. The court held that the argument that it cannot execute its own judgment where the procedure would involve the Companies Act was a narrow interpretation that would undermine the court's independence. The preliminary objection was dismissed with costs to the Applicant.

Questions the Court framed

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

  1. 1.Whether this court lacks jurisdiction to make further orders under the Notice to Show Cause issued under Section 3(1) of the Companies Act
  2. 2.Whether the court can execute its own judgment including lifting the corporate veil

Key legal issues

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01

Whether the ELRC lacks jurisdiction to make orders under a Notice to Show Cause because the process may involve provisions of the Companies Act

Holding

The Preliminary Objection fails; the ELRC, being of the same status as the High Court, may execute its own decrees, including where the procedure involves the Companies Act.

Reasoning

The court characterized the underlying matter as an employment claim and held that execution of its judgments is governed by Rule 32 of the ELRC Rules read with the Civil Procedure Rules. Relying on Article 162(2) and the USIU decision, the court held that restricting its powers of execution on the basis that the Companies Act might be engaged would be a narrow interpretation that would undermine the court's independence.

p. 3

Legal principles established

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  • The ELRC has the same status as the High Court and possesses the power to execute its own judgments and orders in accordance with the Civil Procedure Act and Rules

Court orders

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  1. 1.The Preliminary Objection is found to lack merit and is dismissed
  2. 2.Costs of the Preliminary Objection awarded to the Applicant/Decree Holder

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Article 162(2) of the Constitution; Rule 32 of the Employment and Labour Relations Court (Procedure) Rules; Civil Procedure Act

Relief refused

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Preliminary Objection seeking a finding that the court lacks jurisdiction over the NTSC proceedings

The court held it has the same powers as the High Court to execute its own decrees under the Civil Procedure Act and Rule 32 of the ELRC Rules

p. 3

Costs

Preliminary Objection dismissed with costs to the Applicant

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.

I therefore find that the Preliminary Objection lacks merit and is dismissed accordingly with costs.
p. 3Disposition - dismissal of preliminary objection with costs
When it comes to execution of the judgment of this court, the law is clear in that this court has same powers to execute court's orders under the Civil Procedure Act.
p. 1Execution powers of the ELRC

Issues in the judgment

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minor

Judgment does not name the parties or case number; roles inferred from reference to 'Respondent Judgment Debtor' and 'Applicant'

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, "Nyamai v Naivasha Rocky Eco-Lodge aka Rocky Resort; Elima Art Depot Limited (Objector) (Employment and Labour Relations Cause E003 of 2023) [2024] KEELRC 1862 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1862/eng@2024-07-17

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