[2013] KEHC 5125 (KLR)

[2013] KEHC 5125 (KLR)

The court held that the power to strike out pleadings is discretionary and should be exercised sparingly, only in clear and obvious cases where the suit is plainly without substance and incapable of amendment. In this case, the 1st defendant's argument that it was acting as a statutory agent under the Income Tax Act...

Source-derived case information.

Citation
[2013] KEHC 5125 (KLR)
Parties
Plaintiff: Jackson Ngechu Kimotho; Defendant: Equity Bank Limited; Defendant: Kenya Revenue Authority
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Case Number
Civil Suit 587 of 2011
Procedural Posture
Civil Suit / Ruling on Application to Strike Out Suit Against 1st Defendant
Outcome
application dismissed
Judges
GV Odunga
Legal Topics
Striking Out Pleadings, Bank Confidentiality, Agency Notice, Indemnity, Statutory Obligations, Abuse of Process
Source Language
en
Civil Procedure Banking and Finance Tax Law Striking Out Pleadings Bank Confidentiality Agency Notice Indemnity Statutory Obligations +1 more

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Summary, issues, holding and outcome

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Parties

Jackson Ngechu Kimotho

Plaintiff

Equity Bank Limited

Defendant

Kenya Revenue Authority

Defendant

Procedural Posture

Civil Suit / Ruling on Application to Strike Out Suit Against 1st Defendant

  1. 1 Whether the suit against the 1st defendant should be struck out as scandalous, frivolous, vexatious, or an abuse of court process.
  2. 2 Whether the 1st defendant, as agent of the 2nd defendant, is indemnified from liability for remitting funds from the plaintiff's account pursuant to an agency notice under the Income Tax Act.
  3. 3 Whether the 1st defendant breached its duty of confidentiality and contractual obligations to the plaintiff by remitting Kshs 800,000.00 without notice or consent.

Ratio Decidendi

The court held that the power to strike out pleadings is discretionary and should be exercised sparingly, only in clear and obvious cases where the suit is plainly without substance and incapable of amendment. In this case, the 1st defendant's argument that it was acting as a statutory agent under the Income Tax Act and is indemnified by law does not, at this stage, render its presence in the proceedings unnecessary. The plaintiff alleges breach of contract and confidentiality, and the issue of whether the 1st defendant is liable to the plaintiff is yet to be determined. If the court were to find the 2nd defendant's demand unjustified, the question of indemnity between the 1st and 2nd...

Court Disposition

application dismissed

Orders

  • The Notice of Motion dated 10th September 2012 is dismissed.
  • Costs of the application are awarded to the plaintiff.