Mandhir Construction Limited v One Riverside Drive Limited (Civil Suit 257 of 2018) [2026] KEHC 5761 (KLR) (Commercial and Tax) (27 April 2026) (Ruling)

Mandhir Construction Limited v One Riverside Drive Limited (Civil Suit 257 of 2018) [2026] KEHC 5761 (KLR) (Commercial and Tax) (27 April 2026) (Ruling)

The Defendant/Respondent is a Special Purpose Vehicle with no demonstrated assets or financial statements and relies on a third party not party to the suit. The risk profile justifies an order for security. The court exercises its discretion under Section 37(2) of the Arbitration Act to order the Respondent to provide security for Kshs.20,000,000.

Citation
[2026] KEHC 5761 (KLR)
Parties
Plaintiff/applicant: Mandhir Construction Limited; Defendant/respondent: One Riverside Drive Limited
Court
High Court
Jurisdiction
Kenya
Judgment Date
27 April 2026
Case Number
Civil Suit 257 of 2018
Procedural Posture
Civil Suit / Ruling on Application for Security Pending Arbitration
Outcome
Application allowed in part
Legal Topics
Security for Costs, Enforcement of Arbitral Awards, Setting Aside Arbitral Awards
Source Language
English
Arbitration Civil Procedure Security for Costs Enforcement of Arbitral Awards Setting Aside Arbitral Awards

Case Brief

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Parties

Mandhir Construction Limited

Plaintiff/applicant

One Riverside Drive Limited

Defendant/respondent

Procedural Posture

Civil Suit / Ruling on Application for Security Pending Arbitration

Legal Issues

  1. 1 Whether the Respondent should be ordered to provide security pending determination of the application to set aside the arbitral award

Ratio Decidendi

The Defendant/Respondent is a Special Purpose Vehicle with no demonstrated assets or financial statements and relies on a third party not party to the suit. The risk profile justifies an order for security. The court exercises its discretion under Section 37(2) of the Arbitration Act to order the Respondent to provide security for Kshs.20,000,000.

Court Disposition

Application allowed in part

Orders

  • Defendant/Respondent to provide security of Kshs.20,000,000 to be deposited in a joint interest earning account in the names of the parties' advocates within 45 days, or in default, deposit in court within 5 days after expiry of the period.
  • Alternatively, Defendant/Respondent may provide a bank guarantee for Kshs.20,000,000 within 45 days directed to the Deputy Registrar and copied to Plaintiff's advocates.