[2023] KEELC 21527 (KLR)
The court found that, despite the plaintiff's apparent admission of default in loan repayment, there remain several unresolved factual questions and pending investigations, including issues of alleged fraud and the existence of related proceedings. The court determined that these uncertainties preclude the entry of...
Source-derived case information.
- Citation
- [2023] KEELC 21527 (KLR)
- Parties
- Plaintiff: Pinnacle Business School Limited; Defendant: Superdrill International Limited
- Court
- Environment and Land Court
- Court Station
- Environment and Land Court at Kajiado
- Jurisdiction
- Kenya
- Case Number
- Environment & Land Case E011 of 2020
- Procedural Posture
- Notice of Motion / Ruling on Application for Judgment on Counterclaim Before Full Hearing
- Outcome
- application dismissed
- Judges
- MN Gicheru
- Legal Topics
- Summary Judgment, Counterclaim Procedure, Loan Default, Security for Loans, Admissions in Affidavit
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Pinnacle Business School Limited
Plaintiff
Superdrill International Limited
Defendant
Procedural Posture
Notice of Motion / Ruling on Application for Judgment on Counterclaim Before Full Hearing
Legal Issues
- 1 Whether the defendant is entitled to judgment on the counterclaim based on alleged admissions by the plaintiff.
- 2 Whether the application for judgment is premature given pending investigations and related proceedings.
- 3 Whether the existence of unresolved factual questions necessitates a full hearing.
Ratio Decidendi
The court found that, despite the plaintiff's apparent admission of default in loan repayment, there remain several unresolved factual questions and pending investigations, including issues of alleged fraud and the existence of related proceedings. The court determined that these uncertainties preclude the entry of judgment on the counterclaim at this stage. The application for judgment is therefore premature, and only a full hearing can resolve the outstanding issues. The motion was dismissed to allow the matter to proceed to trial, where all questions can be addressed on their merits.
Court Disposition
application dismissed
Orders
- The notice of motion dated 15/1/2021 is dismissed.
- Costs in the cause.
Full Case Text
Judgment text and source record
20 paragraphs
Pinnacle Business School Limited v Superdrill International Limited (Environment & Land Case E011 of 2020) [2023] KEELC 21527 (KLR) (15 November 2023) (Ruling)
Neutral citation: [2023] KEELC 21527 (KLR)
Republic of Kenya
In the Environment and Land Court at Kajiado
Environment & Land Case E011 of 2020
MN Gicheru, J
November 15, 2023
Between
Pinnacle Business School Limited
Plaintiff
and
Superdrill International Limited
Defendant
Ruling
1. This ruling is on the notice of motion dated 15/1/2021. The motion which is by the defendant is brought under order 13 rule 2 of the Civil Procedure Rules, section 3A of the Civil Procedure Act and article 40 of the Constitution. It seeks the following orders.a.That judgment be entered in favour of the Defendant against the Plaintiff in terms of prayers (a) and (b) of the counter claim dated 13/1/2021. b.That the costs of this application be in the cause.
2. The motion is based on two grounds and is supported by the affidavit of Joshua Kimaita Kirera, a director and shareholder of the Defendant. In summary, the Defendant is saying that the Plaintiff has admitted liability to the Defendant’s claim. It did this when it admitted to have defaulted in its loan payment as per paragraph 11 of the affidavit dated 28/10/2020. The said affidavit reads as follows.“That the Plaintiff was not able to meet their commitments under the loan agreement and effectively forfeited their rights to reversion of the properties, Kajiado/Ntashart/1577, 1578, 1581 and 471”.It is also admitted that L.R. 1583 was used as additional security to make the Plaintiff a little bit creditworthy because despite charging the other four parcels, he was not worthy of any credit. It is the Defendant which came to his rescue but on the understanding that he would repay the fresh loan to the bank at the quarterly rate of Kshs. 5, 749,232. 00 which he failed to pay. Given the above explained circumstances, the Plaintiff has no defence to the counterclaim.
3. The motion is opposed by the Plaintiff and one of its directors and shareholders John Wainaina Gikonyo has sworn a replying affidavit dated 17/11/2021 in which he deposes as follows.Firstly, the application is premature and an abuse of the court process as the entire suit should be heard on merit.Secondly, there is fraud which is under investigation by the police and whose outcome may affect this case.Thirdly, there is a pending constitutional petition filed by the applicant on 22/6/2021. For the above stated reasons, the motion should not be allowed.
4. I have carefully considered the motion in its entirety including the grounds, the affidavits, the submissions dated 23/11/2022, 10/4/2023 and 23/9/2023 and I find that it has no merit for the following reasons.Firstly, even though there is no evidence to prove that the Plaintiff repaid the loan to the bank as expected, there are many things that are unclear to me at this stage. For example, why was this suit filed when there were orders issued in Miscellaneous Application No. 96/2017? Were those orders not sufficient? Was there any need to file the counterclaim? Could the Plaintiff not seek to set aside the orders made in the application No. 96 of 2017 instead of filing this suit?Secondly, how will the fraud investigations assist the Plaintiff if he never paid the quarterly instalments to the bank as required?Finally, why have the parties filed a plethora of applications and suits while the dispute between them could have been determined in one suit?
5. These are some of the questions that this suit elicits and only a full hearing will provide answers. This court should not strike out a suit that raises more questions than answers. Let the parties provide answers to those questions. The motion dated 15/1/2021 is dismissed. Costs in the cause.
DATED SIGNED AND DELIVERED AT KAJIADO VIRTUALLY THIS 15TH DAY OF NOVEMBER, 2023. M.N. GICHERUJUDGE