[2007] KEHC 600 (KLR)
The court held that for garnishee proceedings to succeed, the debt sought to be attached must be proved or admitted. Rent payable by tenants to a landlord does not constitute a debt within the meaning of Order XXII Rule 1 of the Civil Procedure Rules and is instead akin to a periodical allowance, which is not...
Source-derived case information.
- Citation
- [2007] KEHC 600 (KLR)
- Parties
- Applicant: Busuru Richard Mark t/a Busuru R.M. & Partners, Architects; Respondent: B.A. Omuse t/a Afro-Anglo Investments Ltd; Garnishee: Blue Shield Insurance Co. Ltd; Garnishee: Kenya Post Office Savings Bank; Garnishee: Kenya Credit Traders Ltd; Garnishee: Beauty World Salon; Garnishee: Goldprint Ltd/The Profoto Centre; Garnishee: Kitale Progressive Training Institute; Garnishee: Marson Electronics; Garnishee: Phoebe’s Hair Salon; Garnishee: Tianshi (Tiens) Speciality Shop/Acupoint Services; Garnishee: Western Union
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- ? 1300 of 2002
- Procedural Posture
- Miscellaneous Application / Ruling on Garnishee Application
- Outcome
- application dismissed with costs
- Judges
- JL Osiemo
- Legal Topics
- Garnishee Proceedings, Attachment of Debts, Execution of Decrees, Nature of Rent as Debt
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Busuru Richard Mark t/a Busuru R.M. & Partners, Architects
Applicant
B.A. Omuse t/a Afro-Anglo Investments Ltd
Respondent
Blue Shield Insurance Co. Ltd
Garnishee
Kenya Post Office Savings Bank
Garnishee
Kenya Credit Traders Ltd
Garnishee
Beauty World Salon
Garnishee
Goldprint Ltd/The Profoto Centre
Garnishee
Kitale Progressive Training Institute
Garnishee
Marson Electronics
Garnishee
Phoebe’s Hair Salon
Garnishee
Tianshi (Tiens) Speciality Shop/Acupoint Services
Garnishee
Western Union
Garnishee
Procedural Posture
Miscellaneous Application / Ruling on Garnishee Application
Legal Issues
- 1 Whether rent payable by tenants to a landlord constitutes a debt recoverable by way of garnishee proceedings under Order XXII Rule 1 of the Civil Procedure Rules.
- 2 Whether sufficient evidence was adduced to prove the existence of tenancy relationships between the garnishees and the judgment debtor.
- 3 Whether the applicant is entitled to attachment of rents to satisfy the decree.
Ratio Decidendi
The court held that for garnishee proceedings to succeed, the debt sought to be attached must be proved or admitted. Rent payable by tenants to a landlord does not constitute a debt within the meaning of Order XXII Rule 1 of the Civil Procedure Rules and is instead akin to a periodical allowance, which is not attachable by garnishee proceedings. Furthermore, the applicant failed to provide evidence, such as lease agreements, to establish that the garnishees are indeed tenants of the judgment debtor. Consequently, the application for attachment of rents was dismissed as it did not meet the legal threshold for garnishee proceedings.
Court Disposition
application dismissed with costs
Orders
- The decree holder's application for attachment of rents by way of garnishee proceedings is dismissed with costs.
Full Case Text
Judgment text and source record
48 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
(MILIMANI LAW COURTS)
Misc Civil Appli 1300 of 2002
IN THE MATTER OF ARBITRATION ACT 1995
AND
IN THE MATTER OF ARBITRATION ACT
BETWEEN
BUSURU RICHARD MARK T/A BUSURU R.M. & PARTNERS, ARCHITECTS….DECREE HOLDER
AND
B.A. OMUSE T/A AFRO-ANGLO INVESTMENTS LTD…….......………….……JUDGMENT HOLDER
AND
BLUE SHILD INSURANCE CO. LTD…………….……………..1ST GARNISHEE
KENYA POST OFFICE SAVINGS BANK………………………2ND GARNISHEE
KENYA CREDIT TRADERS LTD………………………………..3RD GARNISHEE
BEAUTY WORLD SALON………………………………………...4TH GARNISHEE
GOLDPRINT LTD/THE PROFOTO CENTRE……….....………..5TH GARNISHEE
KITALE PROGRESSIVE TRAINING INSTITUTE……........……..6TH GARNISHEE
MARSON ELECTRONICS……………………………......………7TH GARNISHEE
PHOEBE’S HAIR SALON………………………………...……….8TH GARNISHEE
TIANISHI(TIENS) SPECIALITYSHOP/ACUPOINTSERVICES…9TH GARNISHEE
WESTERN UNION………………………………………………..10TH GARNISHEE
RULING
Before me is an application by Way of Chamber Summons brought under Order XXII Rule 1 dated 16th October 2006 and amended on 17th January 2007 in which the Applicant Decree - Holder seeks orders:
1. That all rents owing or accruing due from all the Garnishee to the Judgment/Debtor in respect of the building in Kitale and more particularly known as LR NO. 2116/26 Kitale be attached to answer the decree herein in the sum of Shs.5,205,848. 20 as at 18th September 2006.
2. That the above mentioned Garnishee do show cause why the said Garnishee should not pay to the applicant the Decree-Holder the rent due from them to the said Respondent or so much thereon as may be sufficient to satisfy the decree together with costs of these proceedings.
3. That service of the Order Nisi on the Judgment Debtor be dispensed with as service of the Order Nisi will cause much delay and it is desirable that these Garnishee Proceedings should be proceeded with the least delay if the result is to be fruitful and to prevent termination of tenancies to defeat this process.
The application is based on the grounds that:
(a) The Judgment-Debtor has not exhibited any willingness to settle the decretal amount.
(b) The Judgment-Debtor owns a commercial building within Kitale Municipality on plot LR NO. 2116/VI/26 Kitale which has been let out to the Garnishee at a reasonable rental.
(c) It is only fair and just that the rent due and owning from the Garnishee to the Judgment-Debtor be attached to satisfy the Decree herein.
The application is also supported by an affidavit sworn by Busuru R. Mark on 19th January 2007 in which he has deponed on facts similar to the grounds herein.
The Khalwale counsel for the applicant submitted that efforts to recover the decretal amount from the Judgment-Debtor has not been successful.
The application is opposed by the Garnishee through learned counsel Mr. Akoto and who relies on the Replying Affidavit filed herein.
In the Replying Affidavit the Judgment-Debtor depones that he has made efforts to liquidate the decretal sum.
Mr. Akoto submitted that Judgment was entered by consent in the sum of Shs.3,164,045. 20. The Judgment Debtor has paid Shs.1,820,000/= and produced payment receipts to prove payment.
But despite the efforts made by the Judgment Debtor to liquidate the decretal sum, the decree –Holder has resorted and has adopted a multiplicity mode of execution against the Judgment-Debtor simultaneously. There was an attempt to sell his moveable property which application was withdrawn.
Also that there was an attempt to sell the building which attempt was withdrawn by the order of this court. Subsequently an attempt to sell the Judgment-Debtor property was stopped by the court but that application is still pending.
There are two parallel firms acting for the Decree-Holder namely Khalwale & Co. Advocates and Mosoti & Co. Advocates and both firms filed application simultaneously. Further Mr. Akoto submitted that a tenant cannot be classified as a Debtor. Under the Provisions of Order XXII Rule 1 of the Civil Procedure Rules, Rents payable by such tenants as and when they fall due cannot be classified as debts which are recoverable by way of Garnishee Proceedings. Further no evidence has been adduced to prove that the Garnishee are actually tenants of the Judgment Debtor. No lease agreement produced to prove tenancy.
Mr. Khalwale counsel for the applicant conceded that he had withdrawn the previous applications filed against the Judgment Debtor. This application is brought under the Provisions of Order XXII of the Civil procedure Rules which provide thus:
XXII(1) A court may, upon the ex parte application of a Decree Holder and either before or after an oral examination of the
Judgment-Debtor, and upon affidavit by the Decree Holder or his advocate stating that a decree has been issued and that it is still unsatisfied and to what amount, and that another person is indebted to the Judgment Debtor and is within the jurisdiction, order that all debts/other that the salary, or allowance coming within the provisions of Order XXI Rule 43 owing from such third person (therein after called the Garnishee) to the Judgment Debtor shall be attached to answer the decree together with the costs of the Garnishee Proceedings; and by the same or any subsequent order it may be ordered that the Garnishee shall appear before the court to show cause why he should not pay the Decree Holder the debt due from him to the Judgment Debtor or so much thereof as may be sufficient to satisfy the decree together with the costs aforesaid.
A debt must either be proved or admitted. With due respect counsel rent payable to the landlord is not a debt and cannot be subject to Garnishee Proceedings. Rent payable is equivalent to periodical allowance which could be covered by Order XXI Rule 43 of the Civil procedure Rules.
For the reasons stated above, the Decree Holders’ application is dismissed with costs.
Dated at Nairobi this 5th day of March 2007.
………………………
J.L.A. OSIEMO
JUDGE