[2023] KEHC 271 (KLR)
The High Court found that the trial magistrate erred by failing to specify that interest should accrue from the date of filing suit. Section 26 of the Civil Procedure Act grants the court discretion to award interest from the date of filing, and the omission to specify the period for interest in the decree was a...
Source-derived case information.
- Citation
- [2023] KEHC 271 (KLR)
- Parties
- Appellant: Kanje Contractors Ltd; Appellant: Stephen Mboroko Mutethia Alias SM Mutethia; Respondent: Jennifer Angaine
- Court
- High Court
- Court Station
- High Court at Meru
- Jurisdiction
- Kenya
- Case Number
- Civil Appeal 44 of 2018
- Procedural Posture
- Civil Appeal / Judgment
- Outcome
- Appeal allowed in part.
- Judges
- TW Cherere
- Legal Topics
- Interest Award, Decretal Sum, Court Discretion, Civil Appeals
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kanje Contractors Ltd
Appellant
Stephen Mboroko Mutethia Alias SM Mutethia
Appellant
Jennifer Angaine
Respondent
Procedural Posture
Civil Appeal / Judgment
Legal Issues
- 1 Whether the trial court erred in failing to award interest from the date of filing suit.
- 2 Whether the court properly exercised its discretion under section 26 of the Civil Procedure Act regarding interest.
Ratio Decidendi
The High Court found that the trial magistrate erred by failing to specify that interest should accrue from the date of filing suit. Section 26 of the Civil Procedure Act grants the court discretion to award interest from the date of filing, and the omission to specify the period for interest in the decree was a misdirection. The appellate court held that, in the absence of such specification, the law presumes interest runs from the date of decree, but the circumstances of this case warranted interest from the date of filing. The court therefore ordered that the decretal sum of KES 838,501/- attract interest at court rates from the date of filing suit until payment in full.
Court Disposition
Appeal allowed in part.
Orders
- The decretal sum of KES 838,501/- shall attract interest at court rates from the date of filing of the suit until payment in full.
- Each party shall bear their own costs of the appeal.
Full Case Text
Judgment text and source record
26 paragraphs
Kanje Contractors Ltd & another v Angaine (Civil Appeal 44 of 2018) [2023] KEHC 271 (KLR) (26 January 2023) (Judgment)
Neutral citation: [2023] KEHC 271 (KLR)
Republic of Kenya
In the High Court at Meru
Civil Appeal 44 of 2018
TW Cherere, J
January 26, 2023
Between
Kanje Contractors Ltd
1st Appellant
Stephen Mboroko Mutethia Alias SM Mutethia
2nd Appellant
and
Jennifer Angaine
Respondent
(Being an appeal from the ruling in Meru CMCC No 1A of 2006 by Hon S. Abuya (SPM) on 25th May, 2018)
Judgment
1. By a judgment in Meru CMCC No 1A of 2006 dated May 29, 2017, the trial magistrate found the Appellants’ claim for KES 838,501/- proved and entered judgment for the same with interest at court rates.
2. Consequently, by an application dated September 27, 2017, Appellants sought for orders that the judgment of the court be amended/corrected and or rectified to express that interest at court rates was to accrue from the date of filing suit.
3. The learned trial magistrate considered the application and by a ruling dated April 25, 2018 found it unmerited and dismissed it.
4. It is against the backdrop of that dismissal that Appellants preferred this appeal faulting the learned trial magistrate for failing to exercise the court’s discretion under section 26 of the Civil Procedure Act in their favour.
5. Section 26 provides that:(1)Where and in so far as a decree is for the payment of money, the court may, in the decree, order interest at such rate as the court deems reasonable to be paid on the principal sum adjudged from the date of the suit to the date of the decree in addition to any interest adjudged on such principal sum for any period before the institution of the suit, with further interest at such rate as the court deems reasonable on the aggregate sum so adjudged from the date of the decree to the date of payment or to such earlier date as the court thinks fit.(2)Where such a decree is silent with respect to the payment of further interest on such aggregate sum as aforesaid from the date of the decree to the date of payment or other earlier date, the court shall be deemed to have ordered interest at 6 per cent per annum.
6. In the case at hand, the learned trial magistrate awarded interest at court rates but did not indicate the period for which interest was to accrue and that by interpretation of subsection 2 above is from the date of the decree.7. The Civil Procedure Act Cap 21 Laws of Kenya Section 26 enables the court to order interest on the principal sum adjudged in a decree both before and after the date of the decree to be paid at such rate as the court deems reasonable.
8. From the foregoing, I find that the trial court fell into error when it failed to award interest from date of filing suit. Accordingly, the decretal sum of KES 838,501/- shall attract interest at court rates from the date of filing of the suit until payment in full.
9. Circumstances dictate that each party shall bear own costs of the appeal.
DATED AT MERU THIS 26TH DAY OF JANUARY 2023. WAMAE. T. W. CHEREREJUDGEAppearancesCourt Assistant - Morris KinotiFor Appellants - Mr. Gikunda for Gikunda Anampiu & Company AdvocatesRespondents - z for Kiogora Arithi & Associates