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Case Brief · caselaw.co.ke
Supreme CourtDismissedPetition 6 of 2016

Manchester Outfitters (Suiting Division) Ltd (Now known as King Wollen Mills Ltd) & another v Standard Chartered Financial Services Ltd & 2 others

Supreme Court of Kenya
20 December 2019
7,935 words in judgment
View original judgmentRead on Kenya LawDownload the judgment (PDF) Watch case
AI-assisted case brief
·~32 min to read original · ~4 min brief

The bottom line

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Court of Appeal can review its own decisions in exceptional cases to ensure justice.

What this practically means

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The Supreme Court confirmed that Kenya's Court of Appeal has the power to review its own past decisions in rare cases where fairness demands it. This power exists under the 2010 Constitution, even though it did not before. The Court said it would be illogical for the Supreme Court to have review powers but not the Court of Appeal. The case involved allegations of bias against a judge, which justified reopening the matter.

Executive summary

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This appeal arose from a long-running commercial dispute dating back to 1990. The 1st and 2nd petitioners (now respondents) had sued the 1st and 2nd respondents (now appellants) challenging the appointment of receiver managers under a debenture. The High Court dismissed the suit and allowed the counterclaim. The Court of Appeal (by majority) allowed the appeal and awarded Kshs 251,000,000 plus interest. The respondents then applied to the Court of Appeal to review and set aside that judgment, alleging bias because one of the judges (Lakha JA) had previously been instructed by the petitioners before joining the bench. The Court of Appeal (a five-judge bench) allowed the review application, set aside the 2002 judgment, and ordered a fresh hearing. The petitioners appealed to the Supreme Court, arguing that the Court of Appeal had no jurisdiction to review its own concluded decisions. The Supreme Court first addressed its own jurisdiction under Article 163(4)(a), holding that the appeal raised a novel constitutional question about the Court of Appeal's review powers, which had not been settled before, and therefore the Court had jurisdiction. On the merits, the Supreme Court traced the evolution of the law on review of Court of Appeal decisions. It noted that prior to the 2010 Constitution, the Court of Appeal, as the final court, had no review jurisdiction (as held in the Rai case). However, post-2010, with the enactment of section 3A of the Appellate Jurisdiction Act and the constitutional emphasis on justice, the Court of Appeal acquired residual jurisdiction to review its decisions in exceptional circumstances (as held in the Nguruman case). The Supreme Court endorsed the Nguruman position, finding it sound and pragmatic. It held that it would be absurd for the Supreme Court to have review powers while the Court of Appeal does not. The Court found no fault in the Court of Appeal's decision to re-open the appeal, given the circumstances including allegations of bias and the manner in which the valuation report was admitted. The petition was dismissed, and each party was ordered to bear its own costs.

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 has jurisdiction to hear and determine the instant petition
  2. 2.Whether the Court of Appeal has the jurisdiction to review its decisions
  3. 3.What reliefs are to issue including on costs

Key legal issues

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01

Whether the Supreme Court has jurisdiction under Article 163(4)(a) to hear an appeal from a Court of Appeal ruling on review of its own judgment

Holding

The Supreme Court has jurisdiction because the appeal raises a novel constitutional question regarding the Court of Appeal's review powers, which has not been settled before.

Reasoning

The Court distinguished this case from earlier decisions where it declined jurisdiction because the Court of Appeal had not rendered a final decision. Here, the Court of Appeal had rendered a final decision on the main issues, and the post-judgment ruling on review powers raised a novel jurisdictional issue requiring settlement by the Supreme Court. The Court relied on the principles in the Joho and Asanyo cases that where there is a prima facie case of derogation from constitutional principles, the Supreme Court must intervene.

02

Whether the Court of Appeal has jurisdiction to review its own decisions

Holding

The Court of Appeal has residual jurisdiction to review its own decisions post-2010 Constitution, in exceptional circumstances, to do justice.

Reasoning

The Court traced the evolution of the law from the Rai case (pre-2010, where the Court of Appeal as final court had no review jurisdiction) to the Nguruman and Benjoh cases (post-2010, where the court recognized residual jurisdiction). The Supreme Court held that the Nguruman decision is a sound exposition of the law post-2010, and it would be absurd for the Supreme Court to have review powers while the Court of Appeal does not. The Court of Appeal's decision to re-open the appeal was justified because the previous judgment was based on a valuation report admitted de bene esse from the bar, and there were allegations of bias.

Legal principles established

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  • Court of Appeal has residual jurisdiction to review its own decisions post-2010 Constitution in exceptional circumstances.
  • Supreme Court has jurisdiction under Article 163(4)(a) to hear appeals raising novel constitutional questions about court powers.
  • Review powers of Court of Appeal are guided by principles of justice and fairness, not unlimited.
  • Allegations of judicial bias can justify reopening a concluded appeal for review.
  • Supreme Court's review powers and Court of Appeal's review powers must be consistent to avoid absurdity.

Court orders

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  1. 1.The petition dated May 17, 2019 is hereby dismissed
  2. 2.Each party shall bear its costs of the appeal

The bench

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

majority

Wrote the judgment

majority
Smokin Charles Wanjala
S C WanjalaSCJ
Currently serving
majority
Njoki Susanna Ndungu
Njoki NdunguSCJ
Currently serving
majority
Isaac Lenaola
I LenaolaSCJ
Currently serving
majority
On appeal from
Court of Appeal of Kenya
Civil Application No Nai 224 of 2006
Jurisdiction invoked
Article 163(4)(a) of the Constitution of Kenya, 2010

Relief refused

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Restoration of the Court of Appeal judgment in Civil Appeal No 88 of 2002

The Supreme Court found no justifiable fault in the Court of Appeal's decision to re-open the appeal

Costs

Each party shall bear its costs of the appeal

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 justifiable fault in the decision of the appellate court to re-open and hear fresh the matter before it, as the previous Judgment, based on their consideration of the facts and circumstances, would be deemed as one in which the issues in context must be relooked at afresh.
p. 16 Court of Appeal review jurisdiction
It would be absurd that the Supreme Court, following the Rai and Outa decisions can review its decisions as the apex court while the Court of Appeal should not, in appropriate cases, exercise the same power.
p. 16 Court of Appeal review jurisdiction
the Nguruman decision by the Court of Appeal is not only a sound exposition of the law post 2010 but is also reasonable, pragmatic and we can but only agree with the Court of Appeal in that regard
p. 16 Court of Appeal review jurisdiction

Key timeline

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1990
Commercial dispute begins over appointment of receiver managers.
2002
Court of Appeal (by majority) allows appeal, awards Kshs 251,000,000 plus interest.
Post-2002
Respondents apply to Court of Appeal to review judgment, alleging bias by judge Lakha JA.
2019-05-17
Petitioners file petition at Supreme Court challenging Court of Appeal's review jurisdiction.
2019
Supreme Court dismisses petition, affirms Court of Appeal's review powers.

Practical implications

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For lawyers

New grounds for appeal strategy

When challenging a Court of Appeal decision, consider whether exceptional circumstances like judicial bias or procedural irregularity exist. This ruling opens a door to seek review even after a final judgment, but only in rare cases. Prepare evidence of unfairness or new facts that could not have been raised earlier.

For businesses

Finality of court decisions weakened

Businesses involved in long-running commercial disputes should be aware that a Court of Appeal decision may not be truly final if exceptional issues like bias arise. This could prolong litigation and increase costs. To mitigate, ensure all procedural steps are transparent and avoid any appearance of partiality in judicial appointments.

For individuals

Fairness can reopen old cases

If you believe a Court of Appeal judge was biased or a critical error occurred, you may apply for review even after the case seems closed. This is not a routine option—only for serious issues like bias or fraud. Act quickly and gather strong evidence, as courts will only reopen in exceptional circumstances.

Frequently asked questions

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Can the Court of Appeal in Kenya review its own decisions?+

Yes, the Supreme Court confirmed that the Court of Appeal has residual jurisdiction to review its own decisions in exceptional circumstances, such as allegations of judicial bias or procedural unfairness. This power exists under the 2010 Constitution.

What is the Supreme Court's jurisdiction under Article 163(4)(a) in Kenya?+

The Supreme Court can hear appeals from the Court of Appeal if the case raises a novel constitutional question that has not been settled before. In this case, the question of whether the Court of Appeal can review its own decisions was such a novel issue.

How does the functus officio doctrine apply to the Court of Appeal in Kenya?+

The functus officio doctrine generally prevents a court from revisiting a final decision. However, the Supreme Court held that post-2010, the Court of Appeal can review its decisions in exceptional cases to do justice, overriding the strict application of functus officio.

What are exceptional circumstances for Court of Appeal review in Kenya?+

Exceptional circumstances include allegations of judicial bias, fraud, or where a judgment was based on improperly admitted evidence. In this case, a judge's prior involvement with a party and a valuation report admitted from the bar justified review.

Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Manchester Outfitters (Suiting Division) Ltd (Now known as King Wollen Mills Ltd) & another v Standard Chartered Financial Services Ltd & 2 others", Case Analysis (2019). Petition 6 of 2016. Source: https://new.kenyalaw.orghttps://new.kenyalaw.org/akn/ke/judgment/kesc/2019/7/eng@2019-12-20

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