[2023] KEELC 16108 (KLR)

[2023] KEELC 16108 (KLR)

The court held that interest on costs cannot be levied unless expressly awarded in the Judgment, and any such inclusion in the execution process is unlawful. The applicable court rate of interest at the time of the Judgment was 14% per annum, as established by the Court of Appeal in Highway Furniture Matt Ltd v The...

Source-derived case information.

Citation
[2023] KEELC 16108 (KLR)
Parties
Plaintiff: Philip Jalango; Defendant: Ryan Properties Limited
Court
Environment and Land Court
Court Station
Environment and Land Court at Nairobi
Jurisdiction
Kenya
Case Number
Environment & Land Case 1252 of 2013
Procedural Posture
Preliminary Objection / Ruling on Preliminary Objection to Execution Notice
Outcome
Preliminary objection dismissed with costs.
Judges
JO Mboya
Legal Topics
Execution of Judgments, Interest on Judgment Debt, Limitation Periods, Costs Awards
Source Language
en
Civil Procedure Commercial and Corporate Execution of Judgments Interest on Judgment Debt Limitation Periods Costs Awards

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Parties

Philip Jalango

Plaintiff

Ryan Properties Limited

Defendant

Procedural Posture

Preliminary Objection / Ruling on Preliminary Objection to Execution Notice

  1. 1 Whether the Plaintiff/Decree Holder could charge and levy interest at 14% per annum on costs, in the absence of an express order to that effect in the Judgment.
  2. 2 Whether the applicable rate of interest (court rate) was 14% or 12% per annum at the time of delivery of the subject Judgment.
  3. 3 Whether the cause of action for recovery of interest awarded vide Judgment of the court commences at the date of delivery of the Judgment or otherwise.

Ratio Decidendi

The court held that interest on costs cannot be levied unless expressly awarded in the Judgment, and any such inclusion in the execution process is unlawful. The applicable court rate of interest at the time of the Judgment was 14% per annum, as established by the Court of Appeal in Highway Furniture Matt Ltd v The Permanent Secretary, Office of the President & Another (2006) eKLR. The court further determined that the cause of action for recovery of interest on the judgment sum accrues from the date of delivery of the Judgment, not the date of filing suit. Consequently, interest is recoverable for a maximum of six years from the date of the Judgment, subject to Section 4(4) of the...

Court Disposition

Preliminary objection dismissed with costs.

Orders

  • The preliminary objections by the Defendant/Judgment Debtor are dismissed with costs.
  • Interest on the judgment sum is recoverable at 14% per annum for a maximum of six years from the date of Judgment.