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ELRCOtherNot stated in the judgment

Wijenje & another v Directline Assurance Company Limited & 7 others (Cause 165 of 2020) [2024] KEELRC 2490 (KLR)

Employment and Labour Relations Court
11 October 2024
3,628 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~15 min to read original · ~4 min brief

The bottom line

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A Kenyan employment court paused both a debt seizure and a review case until an insurance tribunal settles who really owns Directline Assurance.

What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court at Nairobi, delivered by Abuodha Nelson Jorum J on 11th October 2024, dealt with two competing applications. The first, dated 27th March 2024, was brought by the 1st to 8th Respondents seeking review and setting aside of orders of Lady Justice Mbaru of 28th March 2023 adopting a consent filed on 24th November 2022, and of the consent decree issued on 15th March 2024. The Respondents relied on a letter from the Insurance Regulatory Authority dated 5th March 2024 stating that AKM Investments Limited and Janus Limited had never sought approval to acquire more than 10% shareholding in the 1st Respondent as required by section 166 of the Insurance Act, and thus were not lawful shareholders, rendering the consent entered by advocates appointed through those shareholdings null and void. The second application, by the Claimant Terry Wijenje dated 8th April 2024 (amended 26th April 2024), sought a garnishee order absolute attaching monies held by six garnishees to satisfy a decree of Kshs 168,381,028 arising from her reinstatement and withheld salary and pension contributions. The Court held that the IRA letter was crucial but had been appealed and stayed before the Insurance Appeals Tribunal (Appeal 4 of 2024), with the shareholding issue also pending before the High Court. Out of abundance of caution, the Court declined to determine the review application or confirm the garnishee order nisi pending the Tribunal's determination, and slated a mention for 25th November 2024.

Questions the Court framed

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

  1. 1.Whether the Respondents' application dated 27th March 2024 for review of the rulings and consent orders should be granted on the ground of discovery of new and important matter (the IRA letter of 5th March 2024)
  2. 2.Whether the Claimant's application dated 8th April 2024 (as amended) for a garnishee order absolute should be confirmed

Key legal issues

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01

Whether the IRA letter of 5th March 2024 constitutes new and important matter warranting review under Rule 33 of the ELRC (Procedure) Rules, 2016

Holding

The Court did not determine the review application, deferring it pending the outcome of Insurance Appeals Tribunal Appeal 4 of 2024, since the IRA letter has been appealed and stayed

Reasoning

The Court acknowledged the crucial nature of the IRA letter clarifying shareholding but noted that the letter's contents are the subject of Appeal 4 of 2024 before the Insurance Appeals Tribunal and have been stayed. Since shareholding issues are also pending before the High Court (E250 of 2024), the Court declined, out of abundance of caution, to determine the review application until the Tribunal decides the appeal.

p. 7
02

Whether the garnishee order nisi should be made absolute

Holding

Confirmation of the garnishee order nisi was deferred pending the determination of Appeal 4 of 2024 before the Insurance Appeals Tribunal

Reasoning

The Claimant's garnishee application sought to enforce a decree founded on the consent order and ruling of 28th March 2023, which the Respondents seek to review. Because the review application is instrumental and turns on the shareholding question pending before the Tribunal and the High Court, the Court held it was in the parties' vital interest to fast track the Tribunal appeal before the applications could be determined.

p. 7

Legal principles established

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  • Where the foundational evidence relied upon in an application has been appealed and stayed by a tribunal with competent jurisdiction, the court may defer determination pending the tribunal's outcome

Court orders

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  1. 1.The Court will not determine the review application dated 27th March 2024 until the outcome of Appeal 4 of 2024 pending before the Insurance Appeals Tribunal
  2. 2.The Court will not confirm the garnishee order nisi pending the determination of Appeal 4 of 2024 pending before the Insurance Appeals Tribunal
  3. 3.Matter slated for mention on 25th November 2024 to be appraised on the status of Appeal 4 of 2024 for further directions

The bench

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

Wrote the judgment

Jurisdiction invoked
Section 16 of the Employment and Labour Relations Court Act and Rule 33 of the Employment and Labour Relations Court (Procedure) Rules, 2016

Relief refused

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Confirmation of the garnishee order absolute sought by the Claimant

Deferred pending determination of Insurance Appeals Tribunal Appeal 4 of 2024

p. 7

Determination of the Respondents' review application

The IRA letter relied upon has been appealed and stayed by the Insurance Appeals Tribunal

p. 7

Costs

No costs order made

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.

The Court therefore out of abundance of caution will not determine the review application until the outcome of Appeal 4 of 2024 pending before the Insurance Appeals Tribunal.
p. 7Deferral of review application
In the same vein the Court will not confirm the garnishee order nisi pending the determination of Appeal 4 of 2024 pending before the Insurance Appeals Tribunal.
p. 7Deferral of garnishee confirmation - final orders
The Court therefore slates the matter for mention on 25th November, 2024 to be appraised on the status of Appeal 4 of 2024 pending before the Insurance Appeals Tribunal in order to give further directions on the two applications pending before it.
p. 7Mention date and further directions - final orders

Issues in the judgment

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minor

The judgment refers inconsistently to the High Court shareholding matter as 'E250 of 2021' in one passage and 'E250 of 2024' in another

minor

Paragraph 2 and the coram date indicate the ruling under review was made on 28th March, 2023 but the application seeks to set aside an order 'made by Lady Justice Mbaru on 28th March,2023' while paragraph 3 refers to orders made 'between 28th March,2023 and 26th March 2024' and the consent was filed 24th November, 2022

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, "Wijenje & another v Directline Assurance Company Limited & 7 others (Cause 165 of 2020) [2024] KEELRC 2490 (KLR)", Case Analysis (2024). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2490/eng@2024-10-11

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