[2023] KEHC 21829 (KLR)

[2023] KEHC 21829 (KLR)

The court found that although the lease agreement between the parties was neither stamped nor registered as required by the Stamp Duty Act, it remained a valid and binding contract between the parties for the purposes of enforcing their obligations inter partes. The court relied on established case law holding that...

Source-derived case information.

Citation
[2023] KEHC 21829 (KLR)
Parties
Plaintiff: Let's Do Business Company Limited; Defendant: Albina Gichuku Koskey
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Judgment Date
15 August 2023
Case Number
Civil Case E222 of 2022
Procedural Posture
Originating Summons / Ruling on Application to Set Aside Appointment of Arbitrator
Outcome
Application dismissed. Arbitration proceedings to continue. Costs to the defendant.
Judges
JWW Mong'are
Legal Topics
Arbitration Agreements, Unstamped Instruments, Lease Disputes, Enforceability of Contracts, Appointment of Arbitrator, Stamp Duty Compliance
Source Language
english
Commercial and Corporate Land and Property Alternative Dispute Resolution Arbitration Agreements Unstamped Instruments Lease Disputes Enforceability of Contracts Appointment of Arbitrator +1 more

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Parties

Let's Do Business Company Limited

Plaintiff

Albina Gichuku Koskey

Defendant

Procedural Posture

Originating Summons / Ruling on Application to Set Aside Appointment of Arbitrator

Legal Issues

  1. 1 Whether the appointment of Nyagah B Kithinji as sole arbitrator by the defendant ought to be set aside.
  2. 2 Whether an unstamped and unregistered lease agreement is valid for purposes of referring a dispute to arbitration.
  3. 3 Which party should bear the costs of the application.

Ratio Decidendi

The court found that although the lease agreement between the parties was neither stamped nor registered as required by the Stamp Duty Act, it remained a valid and binding contract between the parties for the purposes of enforcing their obligations inter partes. The court relied on established case law holding that such documents, while inadmissible in evidence for certain purposes and not binding on third parties, are nonetheless enforceable between the parties themselves. Consequently, the arbitration clause within the lease was valid and capable of being acted upon. The court held that the appointment of the arbitrator was proper and that the arbitration proceedings should continue....

Court Disposition

Application dismissed. Arbitration proceedings to continue. Costs to the defendant.

Orders

  • The Originating Summons and all subsequent applications are dismissed.
  • The arbitration proceedings may continue before the appointed arbitrator.