Bench Bulletin - Issue 12 - Kenya Law Reports
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restraining order superceded any other order issued by the High Court-Insurance Act (Cap 487) section 67(2) (1) - Court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