[2016] KEHC 7679 (KLR)

[2016] KEHC 7679 (KLR)

The court found that the Taxing Officer failed to set out the basic instruction fee and did not provide adequate reasons for increasing the fee to Kshs. 4,000,000.00, which was 40 times the minimum prescribed. The matter was disposed of at the leave stage, involved no complex or novel issues, and there was no...

Source-derived case information.

Citation
[2016] KEHC 7679 (KLR)
Parties
Applicant: National Oil Corporation Limited; Respondent: Real Energy Limited; Respondent: The Business Premises Rent Tribunal
Court
High Court
Court Station
High Court at Nairobi (Milimani Law Courts)
Jurisdiction
Kenya
Case Number
Miscellaneous Civil Application 366 of 2015
Procedural Posture
Miscellaneous Application / Ruling on Reference From Taxation Decision
Outcome
Reference allowed; Taxing Officer's decision on instruction fees set aside; matter remitted for fresh taxation before a different Taxing Officer; each party to bear own costs of the reference.
Legal Topics
Taxation of Costs, Judicial Review Procedure, Instruction Fees, Advocates Remuneration Order
Source Language
en
Civil Procedure Taxation of Costs Judicial Review Procedure Instruction Fees Advocates Remuneration Order

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Parties

National Oil Corporation Limited

Applicant

Real Energy Limited

Respondent

The Business Premises Rent Tribunal

Respondent

Procedural Posture

Miscellaneous Application / Ruling on Reference From Taxation Decision

  1. 1 Whether the Taxing Officer erred in principle in awarding instruction fees of Kshs. 4,000,000.00 for an application that did not proceed beyond the leave stage.
  2. 2 Whether the applicant was required to seek reasons from the Taxing Officer before filing the reference.
  3. 3 Whether the number of advocates representing the 1st Respondent was a relevant consideration in taxation.

Ratio Decidendi

The court found that the Taxing Officer failed to set out the basic instruction fee and did not provide adequate reasons for increasing the fee to Kshs. 4,000,000.00, which was 40 times the minimum prescribed. The matter was disposed of at the leave stage, involved no complex or novel issues, and there was no certification for more than one advocate. The Taxing Officer's reliance on the number of advocates and lack of justification for the increase constituted errors of principle. Consequently, the court set aside the taxed instruction fees and directed that the matter be placed before a different Taxing Officer for fresh taxation in accordance with the principles outlined in the ruling....

Court Disposition

Reference allowed; Taxing Officer's decision on instruction fees set aside; matter remitted for fresh taxation before a different Taxing Officer; each party to bear own costs of the reference.

Orders

  • The Taxing Officer’s decision awarding Kshs. 4,000,000.00 in instruction fees is set aside.
  • The matter is to be placed before a different Taxing Officer for fresh taxation of the instruction fees item.