[2021] KEELRC 1419 (KLR)
The court held that the total award of Ksh.342,342 is to be subjected to statutory deductions as required by law. Interest at court rates is to accrue on the net amount payable to the petitioner after statutory deductions, plus any taxed costs, from the date of judgment (11th October, 2016) until payment in full....
Source-derived case information.
- Citation
- [2021] KEELRC 1419 (KLR)
- Parties
- Applicant: Peter Mwendwa Kaliki; Respondent: The Public Service Commission of Kenya; Respondent: The Hon. Attorney General
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 14 of 2015
- Procedural Posture
- Review Application / Ruling on Application for Clarification of Judgment
- Outcome
- Application for clarification allowed to the extent explained; no order as to costs.
- Judges
- M Mbarũ
- Legal Topics
- Statutory Deductions, Interest on Awards, Review of Judgment
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Peter Mwendwa Kaliki
Applicant
The Public Service Commission of Kenya
Respondent
The Hon. Attorney General
Respondent
Procedural Posture
Review Application / Ruling on Application for Clarification of Judgment
Legal Issues
- 1 Whether interest on the award should accrue before or after statutory deductions are made.
- 2 Whether the judgment required clarification regarding the computation of interest in relation to statutory deductions.
Ratio Decidendi
The court held that the total award of Ksh.342,342 is to be subjected to statutory deductions as required by law. Interest at court rates is to accrue on the net amount payable to the petitioner after statutory deductions, plus any taxed costs, from the date of judgment (11th October, 2016) until payment in full. The judgment at paragraph 44 was deemed sufficiently clear, but the court emphasized that statutory deductions must be made first, and interest applies to the remaining sum. The application for clarification was thus allowed to the extent of this explanation, with no order as to costs.
Court Disposition
Application for clarification allowed to the extent explained; no order as to costs.
Orders
- Statutory deductions are to be made from the total award before interest is computed.
- Interest at court rates accrues on the net sum (after statutory deductions and plus costs) from the date of judgment until payment in full.
Full Case Text
Judgment text and source record
40 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT OF KENYA AT NAIROBI
PETITION NO.14 OF 2015
PETER MWENDWA KALIKI ......................................................PETITIONER
VERSUS
THE PUBLIC SERVICE COMMISSION OF KENYA......1STRESPONDENT
THE HON. ATTORNEY GENERAL....................................2NDRESPONDENT
RULING
The respondents filed application dated 24th February, 2021 under Rule 33(1) (c) of the Employment and Labour Relations Court (Procedure) Rules (the Court Rules) and seeking for orders that;
The judgement delivered on 11thOctober, 2016 be reviewed with a view to clarify the provisions of the judgement at paragraph 44 with regard to the issue of when the interest starts accruing in relation to the statutory deductions.
The court do grant any other order it deems just and appropriate in the circumstances.
The application is supported by the affidavit of Christine Oyugi and on the grounds that judgement was delivered on 11th October, 2016 and need clarification at paragraph 44 on the issue of statutory deductions on the award and whether interest on the award starts accruing before or after statutory deductions. Such clarification is important to enable the respondent comply with the judgement.
Ms Oyugi avers that the petitioner was awarded Ksh.342, 243 less statutory deductions attracting interest at court rate at 12% and until payment in full. Such terms were unclear on whether the said interest accrues on the award before or after statutory deductions.
There was no reply or attendance by the petitioner.
Determination
Under Rule 33 of the Court Rules a party is allowed to seek for a review, clarification of the orders of the court or where there exists a good cause to justify a review, correction of clarification.
The respondents are seeking for a clarification of the judgement herein with regard to when the interest starts accruing in relation to the statutory deductions.
Paragraph 44 of the judgement, the court held that;
44. Accordingly award the petitioner as follows;
1. …
2. …
3. …
4. 1 month salary in lieu of leave not taken in year …
Total awarded 342,342/= Less statutory deductions
5. Costs of this suit.
6. The above amount to attract interest at court rates with effect from the date of this judgement.
From the orders cited above, statutory deductions arise from the total award of the court. Pursuant to section 49 (2) of the Employment Act, 2007 all payments made to an employee are subject to statutory deductions.
The judgement at paragraph 44 hence speaks for itself. For emphasis, on the total award of ksh.342,342 such is to be subjected to statutory deduction and under further costs as taxed and total dues payable to the petitioner are to attract interests at court rates
Total due = Ksh.342, 342
Less statutory deductions Ksh.xxx amount;
Plus costs;
Total dues.
Total dues attract interests at court rates from the date of judgement being 11th October, 2016.
Accordingly, the above shall apply with regard to application dated 24thFebruary, 2021. No orders on costs.
Delivered in open court at Nairobi this 13th day of May, 2021.
M. MBARU
JUDGE
In the presence of:
Court Assistant: Okodoi
……………………………………………… and ……………………………………..