[2004] KEHC 1990 (KLR)

[2004] KEHC 1990 (KLR)

The court found that the defendant's belief that the plaintiff may not be able to pay costs if the suit is dismissed was well founded, particularly in light of the plaintiff's listing for intended dissolution and lack of opposition to the application. The court was satisfied that the defendant had a bona fide...

Source-derived case information.

Citation
[2004] KEHC 1990 (KLR)
Parties
Plaintiff: Express Escort Ltd; Defendant: Security Services Ltd
Court
High Court
Court Station
High Court at Nairobi (Milimani Law Courts)
Jurisdiction
Kenya
Judgment Date
3 February 2004
Case Number
Civil Suit 268 of 2002
Procedural Posture
Civil Suit / Ruling on Application for Security for Costs
Outcome
Application allowed. Plaintiff ordered to provide security for costs. Suit stayed pending compliance.
Legal Topics
Security for Costs, Company Dissolution, Exercise of Judicial Discretion
Source Language
english
Civil Procedure Security for Costs Company Dissolution Exercise of Judicial Discretion

Source-derived case record

Summary, issues, holding and outcome

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Parties

Express Escort Ltd

Plaintiff

Security Services Ltd

Defendant

Procedural Posture

Civil Suit / Ruling on Application for Security for Costs

Legal Issues

  1. 1 Whether the plaintiff should be ordered to furnish security for the defendant's costs.
  2. 2 Whether the defendant has demonstrated a bona fide defence to justify the order for security for costs.
  3. 3 Whether the plaintiff's lack of response and its potential dissolution justify the grant of the orders sought.

Ratio Decidendi

The court found that the defendant's belief that the plaintiff may not be able to pay costs if the suit is dismissed was well founded, particularly in light of the plaintiff's listing for intended dissolution and lack of opposition to the application. The court was satisfied that the defendant had a bona fide defence and that the circumstances justified the exercise of discretion in favour of the defendant. Accordingly, the court ordered the plaintiff to provide security for the defendant's costs by way of a local banker's guarantee, undertaking, insurance bond, or deposit in the sum of Kshs.180,000 in an interest-earning account in the joint names of the parties' advocates within thirty...

Court Disposition

Application allowed. Plaintiff ordered to provide security for costs. Suit stayed pending compliance.

Orders

  • Plaintiff to provide security for defendant's costs by way of a local banker's guarantee, undertaking, insurance bond, or deposit of Kshs.180,000 in an interest-earning account in the joint names of the parties' advocates within thirty days from service of the order.
  • Suit stayed pending provision of security for costs.