[2001] KEHC 452 (KLR)
The court held that section 35(a) of the Kenya Airports Authority Act does not prohibit garnishee proceedings against the Authority for debts owed to a judgment debtor, but only prohibits execution or attachment against the Authority's immovable property. Since the garnishee (Kenya Airports Authority) failed to...
Source-derived case information.
- Citation
- [2001] KEHC 452 (KLR)
- Parties
- Plaintiff: Kenya Shell Ltd; Defendant: Air East Africa Ltd
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- ? 826 of 1998
- Procedural Posture
- Civil Case / Ruling on Application for Garnishee Order Absolute and Stay of Execution
- Outcome
- Garnishee order nisi made absolute; leave to appeal granted; stay of payment for 14 days.
- Legal Topics
- Garnishee Proceedings, Attachment of Debts, Execution of Judgments
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Shell Ltd
Plaintiff
Air East Africa Ltd
Defendant
Procedural Posture
Civil Case / Ruling on Application for Garnishee Order Absolute and Stay of Execution
Legal Issues
- 1 Whether the garnishee order nisi should be made absolute against Kenya Airports Authority for debts owed to the judgment debtor.
- 2 Whether section 35 of the Kenya Airports Authority Act prohibits garnishee proceedings against the Authority.
- 3 Whether the procedural requirements for service and hearing of the garnishee application were met.
Ratio Decidendi
The court held that section 35(a) of the Kenya Airports Authority Act does not prohibit garnishee proceedings against the Authority for debts owed to a judgment debtor, but only prohibits execution or attachment against the Authority's immovable property. Since the garnishee (Kenya Airports Authority) failed to attend court or dispute its liability to pay the debt, and the procedural requirements for service and hearing were met, the court made the garnishee order nisi absolute. The court further clarified that while execution against the Authority's property is barred, the court can order the Authority to pay the debt owed to the judgment debtor. The objection regarding the seven-day...
Court Disposition
Garnishee order nisi made absolute; leave to appeal granted; stay of payment for 14 days.
Orders
- The attachment of the judgment debtor's debts in the hands of the garnishee is ordered.
- The garnishee order nisi is made absolute.
Full Case Text
Judgment text and source record
30 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI CIVIL CASE NO. 826 OF 1998
KENYA SHELL LTD……………………………………PLAINTIFF
VERSUS
AIR EAST AFRICA LTD…………………………………DEFENDANT
RULING
This is an application for Plaintiff/Decree holder for attachment of debts owing from Kenya Airport Authority ( Garmishee) to the defendant/judgment debtor. There is a decree given on 21. 7.99 for payment of shs 9,742, 687/70 plus interest by defendant to plaintiff. A Garmishee order Nisi was given on 14. 6.2001. The Kenya Airports Authority (Garmshee) was required to attend court on 25. 6.2001 to show cause why the order Nisi should not be made absolute.
The orders was served late and the Garmishee was now required to attend court on 2. 7.2001 to show cause. The Garmishee did not attend court on 2. 7.2001.
There is an affidavit of service showing that Kenya Ports Authority was served with Garmishee order on 19. 6.2001. The Garmishee was also served to attend court on 2. 7.2001. As the Garmishee failed to attend court on 2. 7.2001, plaintiffs counsel applied that the order Nisi be made absolute.
That application was opposed orally by the judgment debtor.It is more than 7 days from 19. 6.2001 when the Garmishee was served and 2. 7.2001 when the application was fixed for hearing. So the objection by judgment debtor that the 7 days had not expired has no merit.
The judgment debtor also contended that the properties of the Garmishee cannot be attached by virtue of s. 35 of the Kenya Airport Authority Act Cap 395.
Section 35(a) prohibits execution or attachment or process in the nature of execution or attachment in satisfaction of a judgment or order against Kenya Airport Authority of its immoveable properties.
Plaintiff contends that the debt belongs to Judgment debtor and not to the Garmishee and that section 35 has no authority. The effect of a Garmishee order is to bind the debts of the debtor judgment in the hands of the Garnishee (order XXII rule 2 Civil Procedure Rules). The debts being attached belong to Air East (J.D)
The Garmishee did not attend court or dispute the debt. The Garmishee did not also dispute its liability to pay the debt. Section 35 does not prohibit any court from entering judgment against Kenya Ports Authority or from ordering Kenya ports Authority from paying any debts. It merely prohibits execution. Indeed section 35(a) enjoins Kenya Ports Authority to pay such debt. The court can order the Garnichee to pay but cannot order execution against the goods of the Garmshee. I am satisfied that s. 35 of Kenya Ports Authority has no application to Garnishee proceedings.
As the Garneshee has failed to appear, and has not disputed the debt, I order the attachments of J.D’s debts in the hands of Garmshee and make the order Nisi absolute with costs payable by J.D to Decree holder
E. M. Githinji
Judge
5. 7.2001
Mr. Munyi holding brief for Kiragu present
Mr. Kihara for Judgment debtor present
Mr. Kihara
I apply for leave to appeal
I also apply for stay on terms that the money be held by Garmshee The order of stay should operate for 15 days pending the filing of a formal application.
Mr. Munyi
I oppose application for stay of execution. No prejudice will be suffered by J.D if money is paid to Decree holder
E. M. Githinji
Judge
Order: 1. Leave to appeal granted
2. The payment of attachment debt by Garmshee to the Decree holder is stayed for 14 days
E. M. Githinji
Judge