[2015] KEHC 3132 (KLR)

[2015] KEHC 3132 (KLR)

The court found that the appellants, in their capacity as directors of Silverspoon Restaurant Limited, were not parties to the lease agreement, which was between the respondents and the appellants trading as Silverspoon Restaurant. As such, there was no privity of contract between the respondents and Silverspoon Restaurant Limited. Consequently, the appellants had no standing to seek referral of the dispute to arbitration or to request a stay of proceedings. The court further held that there was no arguable appeal since the application for stay was premised on a non-existent contractual relationship. Additionally, there was no dispute capable of being referred to arbitration, as the party...

Citation
[2015] KEHC 3132 (KLR)
Parties
Appellant: Shabbir Nassir Jamal; Appellant: Zainab Salim Nassor t/a Silverspoon Restaurant; Respondent: Vrajkunver Manilal Gohil; Respondent: Rajnikany Manila Gohil; Respondent: Kamal Manilal Gohil
Court
High Court
Court Station
High Court at Mombasa
Jurisdiction
Kenya
Judgment Date
21 August 2015
Case Number
Civil Appeal 160 of 2014
Procedural Posture
Civil Appeal / Ruling on Application for Stay of Proceedings Pending Appeal
Outcome
application dismissed
Judges
MM Kasango
Legal Topics
Privity of Contract, Arbitration Referral, Stay of Proceedings, Lease Disputes
Source Language
English
Civil Procedure Commercial and Corporate Privity of Contract Arbitration Referral Stay of Proceedings Lease Disputes

Case Brief

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Parties

Shabbir Nassir Jamal

Appellant

Zainab Salim Nassor t/a Silverspoon Restaurant

Appellant

Vrajkunver Manilal Gohil

Respondent

Rajnikany Manila Gohil

Respondent

Kamal Manilal Gohil

Respondent

Procedural Posture

Civil Appeal / Ruling on Application for Stay of Proceedings Pending Appeal

Legal Issues

  1. 1 Whether the appellants have an arguable appeal warranting stay of proceedings in the lower court.
  2. 2 Whether there exists a dispute capable of being referred to arbitration under the lease agreement.
  3. 3 Whether Silverspoon Restaurant Limited, as opposed to the named appellants, has privity of contract with the respondents.

Ratio Decidendi

The court found that the appellants, in their capacity as directors of Silverspoon Restaurant Limited, were not parties to the lease agreement, which was between the respondents and the appellants trading as Silverspoon Restaurant. As such, there was no privity of contract between the respondents and Silverspoon Restaurant Limited. Consequently, the appellants had no standing to seek referral of the dispute to arbitration or to request a stay of proceedings. The court further held that there was no arguable appeal since the application for stay was premised on a non-existent contractual relationship. Additionally, there was no dispute capable of being referred to arbitration, as the party...

Court Disposition

application dismissed

Orders

  • The Notice of Motion dated 18th December 2014 is dismissed with costs to the respondent.
  • The stay of proceedings of Mombasa CMCC No. 1106 of 2013 previously granted is vacated.