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Bench Bulletin - Issue 12 - Kenya Law Reports

Bench Bulletin - Issue 12 - Kenya Law Reports

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KENYA LAW REPORTS<br />

BENCH BULLETIN<br />

FROM THE COURTS — HIGH COURT<br />

11. Confinement in prison was in accordance with Section 72(1) (a) of the Constitution and therefore lawful.<br />

<strong>12</strong>. There was no evidence in support of the allegations that the petitioner’s rights to protection of freedom of assembly<br />

and association under Section 80(1) and protection from discrimination under Section 82(3) of the Constitution were<br />

violated.<br />

13. The petitioner’s constitutional rights to personal liberty under Section 72 of the Constitution were violated and the<br />

petitioner’s rights to protection against torture, degrading and inhuman treatment under Section 74 of the Constitution<br />

were also violated and hence an award of damages was appropriate.<br />

14. The petitioner had not specifically pleaded or proved any special damages and in light of the acknowledged<br />

change in the government, and the attempts at dealing with human rights violation, it was inappropriate to award<br />

exemplary or aggravated damages.<br />

Petitioner awarded the sum of Kshs.2.5 million as general damages<br />

Application for an Order of Stay of Proceedings<br />

Piedmont Investment Limited v Standard Assurance Limited & 2 Others<br />

Civil case no 806 of 2003<br />

High Court at Nairobi<br />

Kimaru. J<br />

March 25,2010<br />

Reported by Andrew Halonyere<br />

Civil practice and procedure – stay of proceedings – application for an order of stay of proceedings – application filed by<br />

former directors of the first defendant under statutory management – failure by the former directors of the first defendant<br />

to disclose to the Court of Appeal the status of the first defendant- where the High Court had issued a restraining order<br />

against the defendants from interfering with the suit property - whether the Court of Appeal in granting an order of<br />

stay of proceedings in the High Court meant staying the restraining order issued by the High Court – whether the former<br />

directors of the first defendant had the legal capacity to appear before the Court of Appeal- whether the High Court’s<br />

restraining order superceded any other order issued by the High Court-Insurance Act (Cap 487) section 67(2) (1) - Court<br />

of Appeal Rules Rule 5(2)(b).<br />

Land law – transfer of land –dispute as to title to land - claim that the second defendant had secured from the first defendant<br />

land through fraudulent means in violation of a court order - where the second defendant further transferred the suit<br />

land to a third party – whether the first and second defendants had legal capacity to transfer the land – inherent power<br />

of the High Court to rectify an act done in contempt of it’s orders - whether the third party was an innocent purchaser for<br />

value without notice.<br />

The High Court in a suit filed by the plaintiff regarding the suit land, issued an order restraining the former directors of<br />

the First Defendant from dealing with the suit property pending the hearing and determination of the suit. The former<br />

directors of the First Defendant were aggrieved by the court’s decision and filed an appeal to the Court of Appeal.<br />

Contemporaneous with filing the appeal, the First Defendant filed an application under Rule 5(2) (b) of the Court of<br />

Appeal Rules, seeking an order to stay proceedings in the High Court pending the hearing and determination of an<br />

intended appeal. The Court of Appeal, while making a ruling in respect of the application granted an interim stay to<br />

last until the determination of the application.<br />

The plaintiff on its part, by an application to the High Court supported by the statutory manager of the First Defendant,<br />

sought orders to revert the suit land to the First Defendant. The plaintiff submitted that the former directors of the<br />

First Defendant, in full knowledge that they had no authority or legal capacity to deal with the property of the First<br />

Defendant, went ahead and had secured the transfer of the suit property to the Second Defendant, a company to which<br />

they had an association with, arguing that the transfer was secured by the former directors by lodging with the land<br />

registry a previous order of the High Court which had been superceded by a subsequent order of the High Court.<br />

The Second and Third Defendants opposed the application by submitting that the High Court lacked jurisdiction to<br />

proceed with the application since the Court of Appeal had stayed further proceedings in the suit. The Third Defendant<br />

further submitted that he was an innocent purchaser for value without notice.<br />

Held:<br />

1. In granting an order staying proceedings before the High Court, the Court of Appeal did not stay the order of the<br />

High Court which restrained the First Defendant from transferring the suit property to any third party pending the<br />

hearing and determination of the suit. The Court of Appeal stayed proceedings in the High Court pending further<br />

orders from the High Court.<br />

2. The former directors of the First Defendant failed to inform the Court of Appeal that the management status<br />

of the First Defendant had changed, therefore the former directors of the First Defendant had no legal capacity to<br />

appear before the Court of Appeal when they knew very well that the First Defendant had been placed under statutory<br />

management.<br />

<strong>Issue</strong> <strong>12</strong>: April-June 2010<br />

69

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