[2020] KEHC 3098 (KLR)

[2020] KEHC 3098 (KLR)

The court found that the plaintiff filed the suit before obtaining the requisite leave of court, as mandated for derivative actions under section 239 of the Companies Act, 2015. The leave granted in Meru HC Misc. Civ Appln. No. 46 of 2020 was prospective and did not apply to the present suit, which had already been...

Source-derived case information.

Citation
[2020] KEHC 3098 (KLR)
Parties
Plaintiff: Nissi Civil Engineering & Building Contractors Co. Ltd; Defendant: Jepither Gitonga Mauta; Defendant: Jediel Mutura Mauta
Court
High Court
Court Station
High Court at Meru
Jurisdiction
Kenya
Case Number
Civil Case 6 of 2020
Procedural Posture
Civil Case / Ruling on Preliminary Objection
Outcome
suit struck out for want of jurisdiction
Judges
A Mabeya, F Gikonyo
Legal Topics
Derivative Suits, Leave of Court, Jurisdiction, Preliminary Objection
Source Language
en
Civil Procedure Commercial and Corporate Derivative Suits Leave of Court Jurisdiction Preliminary Objection

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Downloadable case file Legal principles 3 Authorities cited 5 Party arguments 1
Sign in to unlock

Parties

Nissi Civil Engineering & Building Contractors Co. Ltd

Plaintiff

Jepither Gitonga Mauta

Defendant

Jediel Mutura Mauta

Defendant

Procedural Posture

Civil Case / Ruling on Preliminary Objection

  1. 1 Whether the suit was properly before the court without prior leave as required by law.
  2. 2 Whether the leave granted in a separate miscellaneous application could be imported to validate the present suit.
  3. 3 Whether the court had jurisdiction to entertain the suit filed before leave was granted.

Ratio Decidendi

The court found that the plaintiff filed the suit before obtaining the requisite leave of court, as mandated for derivative actions under section 239 of the Companies Act, 2015. The leave granted in Meru HC Misc. Civ Appln. No. 46 of 2020 was prospective and did not apply to the present suit, which had already been filed two months earlier. The plaintiff neither sought to regularize the position nor applied for review to have the leave apply retrospectively. As jurisdiction is foundational, the absence of leave rendered the suit a nullity ab initio. The preliminary objection was therefore upheld, and the suit struck out for want of jurisdiction.

Court Disposition

suit struck out for want of jurisdiction

Orders

  • The preliminary objection is upheld.
  • The application and the suit are struck out with costs to the defendants.