[2016] KEELRC 164 (KLR)
The court found that the applicable interest rate on costs is at the discretion of the court, provided it does not exceed 14% per annum as stipulated by section 27(2) of the Civil Procedure Act. Since the trial judge did not specify a particular rate, the Deputy Registrar's guidance to levy costs at 14% per annum...
Source-derived case information.
- Citation
- [2016] KEELRC 164 (KLR)
- Parties
- Claimant: Godfrey Kimani Njenga; Respondent: Athi River Mining Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 1115 of 2010
- Procedural Posture
- Cause / Ruling
- Outcome
- Application dismissed with costs.
- Legal Topics
- Interest on Costs, Court Rates, Costs Award, Civil Procedure Act Section 27
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Godfrey Kimani Njenga
Claimant
Athi River Mining Limited
Respondent
Procedural Posture
Cause / Ruling
Legal Issues
- 1 What is the correct rate of interest to be applied on costs awarded to the claimant.
- 2 Whether the Deputy Registrar was correct in guiding the claimant to levy costs at 14% per annum.
Ratio Decidendi
The court found that the applicable interest rate on costs is at the discretion of the court, provided it does not exceed 14% per annum as stipulated by section 27(2) of the Civil Procedure Act. Since the trial judge did not specify a particular rate, the Deputy Registrar's guidance to levy costs at 14% per annum was within the permissible legal limit. The applicant's contention that the rate should be 12% was not supported by a specific judicial order or statutory mandate limiting the rate to 12%. Therefore, the application challenging the 14% rate lacked merit and was dismissed with costs.
Court Disposition
Application dismissed with costs.
Orders
- The application is dismissed with costs to the respondent.
Full Case Text
Judgment text and source record
22 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT
AT NAIROBI
CAUSE NO. 1115 OF 2010
GODFREY KIMANI NJENGA ………………..…….............. CLAIMANT
VERSUS
ATHI RIVER MINING LIMITED ………...……............... RESPONDENT
RULING
1. In the judgment delivered by Nzioki wa Makau J. on 14th June 2013 the Judge ordered;
“the claimant will have costs and interest on the sum he has been awarded above. However, the interest that will apply is at court rates and the interest will run from the date of filing suit till payment in full.”
2. The applicant states that in terms of Rule 28 (3) of the Industrial Court Rules, 2010 as read with section 27 of the Civil Procedure Act, the applicable interest is 12% per annum which in this case was tabulated to be Kshs.39,093 and was settled by the applicant.
3. The respondent however tabulated the interest erroneously at the rate of 14% per annum amounting to Kshs.78,118. 84.
4. Pursuant to this the Registrar to guide the parties on the rate of interest and the calculation of the amount of interest that is recoverable by the Decree-Holder.
Determination
5. The court has considered the provisions of section 27 (2) of the Civil Procedure Act, Cap 21 of the laws of Kenya which reads as follows;
“The Court or Judge may give interest on costs at any rate not exceeding fourteen per cent per annum, and such interest shall be added to the costs and shall be recoverable as such.”
6. A plain interpretation of this provision shows that interest at court rates is at the discretion of the court provided it does not exceed 14%.
7. The Judge did not grant a specific percentage but the Deputy Registrar guided the claimant to levy costs at 14% which rate is within that is permissible by the law.
8. The application lacks merit and the same is dismissed with costs.
Dated and delivered at Nairobi this 20th day of December, 2016
MATHEWS NDERI NDUMA
PRINCIPAL JUDGE