[2019] KEHC 563 (KLR)
The court found that the applicant had demonstrated entitlement to recover the judgment debt from funds held by the garnishee on behalf of the judgment debtor. There was no dispute that the garnishee held such funds and that the judgment debtor was indebted to the applicant. The court held that the requirements for...
Source-derived case information.
- Citation
- [2019] KEHC 563 (KLR)
- Parties
- Applicant: James Aggrey Mwamu t/a Mwamu & Company Advocates; Respondent: African Merchant Assurance Company Limited; Respondent: Diamond Trust Bank Kenya Limited
- Court
- High Court
- Court Station
- High Court at Kisumu
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Civil Application 96 of 2018
- Procedural Posture
- Miscellaneous Application / Ruling on Garnishee Application
- Outcome
- application allowed
- Judges
- TW Cherere
- Legal Topics
- Garnishee Proceedings, Debt Enforcement, Attachment of Funds
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
James Aggrey Mwamu t/a Mwamu & Company Advocates
Applicant
African Merchant Assurance Company Limited
Respondent
Diamond Trust Bank Kenya Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Garnishee Application
Legal Issues
- 1 Whether the applicant is entitled to attach monies held by the garnishee on behalf of the judgment debtor to satisfy the decree.
- 2 Whether the garnishee is holding funds belonging to the judgment debtor that can be attached.
- 3 Whether the applicant is entitled to costs of the garnishee proceedings.
Ratio Decidendi
The court found that the applicant had demonstrated entitlement to recover the judgment debt from funds held by the garnishee on behalf of the judgment debtor. There was no dispute that the garnishee held such funds and that the judgment debtor was indebted to the applicant. The court held that the requirements for issuing a garnishee order were satisfied, and therefore ordered attachment of the specified accounts to the extent necessary to satisfy the judgment debt and costs.
Court Disposition
application allowed
Orders
- Monies held by Diamond Trust Bank Kenya Ltd on behalf of Africa Merchant Assurance Company Limited in account numbers 800365007, 365537002 and FDR FDLC 190590503 are attached to answer the decree, amount unsatisfied being Kshs. 275,000 plus interest at 14%.
- Monies in the same accounts are attached to the extent of Kshs. 20,000 to answer the costs of the garnishee proceedings, to be assessed by the Deputy Registrar.
Full Case Text
Judgment text and source record
38 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT KISUMU
(CORAM: CHERERE-J)
MISC. CIVIL APPLICATION NO 96 OF 2018
IN THE MATTER ADVOCATES ACT CHAPTER 16 LAWS OF KENYA
AND
IN THE MATTER OF AN OF THE ADVOCATE’S BILL OF COSTS ARISING FROM LEGAL SERVICES IN OYUGIS SRM NO. 224 OF 2009 LEONARD SHIKUKU VERSUS LACOON INVESTMENTS & ANOR
BETWEEN
JAMES AGGREY MWAMU t/a
MWAMU & COMPANY ADVOCATES…...…APPLICANT/DECREE HOLDER
VERSUS
AFRICAN MERCHANT ASSURANCE
COMPANY LIMITED............................................................JUDGMENT DEBTOR
AND
DIAMOND TRUST BANK KENYA LIMITED...................................GARNISHEE
RULING
1. By a notice of motion dated 21. 11. 19, brought under Sections 1A, 1B, 3A and 38 of the Civil Procedure Act Cap 21 Laws of Kenya and Order 23 Rules 1,2,3 and 10 of the Civil Procedure Rules, the Applicant/ Judgment Creditor prays for orders:
a) THAT all monies deposited, lying and held by the Garnishee, Diamond Trust Bank Kenya Ltd in Judgment Debtor’s account number 800365007, 365537002 and FDR FDLC 190590503 be attached to answer the decree herein for the sum of Kshs. 275,000/- plus interest at 14%
b) THAT costs be borne by the Garnishee
2. The motion is premised on the grounds on the body of the application and the supporting affidavit of JAMES AGRREY MWAMU the Decree Holder and an advocate of the High Court of Kenya, sworn on 21. 11. 19. He avers the Applicant/ Judgment Creditor’s costs against the Judgment Debtor were taxed at Kshs. 275,000/- and a decree thereof was issued on 28. 02. 19 and remain unsettled to date. Annexed to the affidavit is the Certificate of Costs.
3. The application and the Decree Nisi were served on the Judgment Debtor and the Garnishee and was not opposed.
4. I have considered the notice of motion in the light of the affidavit on record.
5. Garnishee proceedings are proceedings where a third party holding funds or property on behalf of a Judgment Debtor can be called upon to honour the claim of a Judgment Creditor over those funds or property. A Garnishee order can only issue in instances where there is something which the law recognizes as a debt. Issuance of a notice to a Garnishee binds the funds in the hands of the Garnishee.
6. It has not been denied that the Garnishee is holding funds on behalf of the Judgment Debtor. It is similarly not disputed that the Judgment Debtor is indebted to the Applicant/ Judgment Creditor.
DISPOSITION
7. On the material presented by the parties, this court is satisfied that the Applicant/ Judgment Creditor has demonstrated that it is entitled to recover its debt from sums held for the Judgment Debtor by the Garnishee in account number800365007, 365537002 and FDR FDLC 190590503 as much as may be sufficient to pay the judgment debt and the costs of the Garnishee proceedings.
8. It is therefore hereby ordered THAT:
a) THAT the monies held by the Garnishee, Diamond Trust Bank Kenya Ltd, on behalf of the Judgment-Debtor M/s Africa Merchant Assurance Company Limited, in account number 800365007, 365537002 and FDR FDLC 190590503 be and is hereby attached to answer the decree herein, the amount unsatisfied being Kshs. 275,000/- plus interest at 14%
b) THAT the monies held by the Garnishee, Diamond Trust Bank Kenya Ltd, on behalf of the Judgment-Debtor M/s Africa Merchant Assurance Company Limited, in account number 800365007, 365537002 and FDR FDLC 190590503 be and is hereby attached to the extent of Kshs. 20,000/- to answer the costs of these garnishee proceedings to be assessed by the Deputy Registrar of this court.
c) Costs of these Garnishee proceedings shall be borne by the Judgment Debtor
DATED, DELIVERED AND SIGNED THIS….05th…DAY OF….December....2019
T. W. CHERERE
JUDGE
Read in open court in the presence of-
Court Assistant - Amondi
For Judgment Creditor - Mr Achola/Mr Mwamu
For Judgment Debtor - N/A
For Garnishee - N/A