[2014] KEHC 4056 (KLR)

[2014] KEHC 4056 (KLR)

The court found that the defendant failed to establish that the amended plaint was so hopeless or devoid of a reasonable cause of action as to warrant summary dismissal. The issues raised by the plaintiff, including whether the loans were repayable on demand and whether the claim was based on the shareholders' agreement, were substantive matters requiring determination at trial. The court emphasized that striking out a pleading is a draconian measure to be used only in the clearest of cases. Since the plaintiff's claim raised triable issues, the application to strike out the amended plaint was dismissed with costs to the plaintiff.

Citation
[2014] KEHC 4056 (KLR)
Parties
Plaintiff: Dev Surinder Kumar Bij; Defendant: Agility Logistics Limited
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Judgment Date
30 June 2014
Case Number
Civil Suit 311 of 2013
Procedural Posture
Civil Suit / Ruling on Application to Strike Out Amended Plaint
Outcome
application dismissed with costs to the plaintiff
Judges
JB Havelock
Legal Topics
Striking Out Pleadings, Cause of Action, Shareholders Agreements, Loan Repayment, Privity of Contract
Source Language
English
Civil Procedure Commercial and Corporate Striking Out Pleadings Cause of Action Shareholders Agreements Loan Repayment Privity of Contract

Case Brief

Summary, issues, holding and outcome

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Parties

Dev Surinder Kumar Bij

Plaintiff

Agility Logistics Limited

Defendant

Procedural Posture

Civil Suit / Ruling on Application to Strike Out Amended Plaint

Legal Issues

  1. 1 Whether the amended plaint discloses a reasonable cause of action against the defendant.
  2. 2 Whether the suit is frivolous, vexatious, or an abuse of the court process.
  3. 3 Whether the plaintiff's claim is premature due to failure to exhaust internal remedies.

Ratio Decidendi

The court found that the defendant failed to establish that the amended plaint was so hopeless or devoid of a reasonable cause of action as to warrant summary dismissal. The issues raised by the plaintiff, including whether the loans were repayable on demand and whether the claim was based on the shareholders' agreement, were substantive matters requiring determination at trial. The court emphasized that striking out a pleading is a draconian measure to be used only in the clearest of cases. Since the plaintiff's claim raised triable issues, the application to strike out the amended plaint was dismissed with costs to the plaintiff.

Court Disposition

application dismissed with costs to the plaintiff

Orders

  • The defendant's application dated 18th September 2013 is dismissed.
  • Costs of the application are awarded to the plaintiff.