[2021] KEHC 4167 (KLR)

[2021] KEHC 4167 (KLR)

The court held that the application for an interim injunction was fatally incompetent as it was brought under the Civil Procedure Rules rather than Section 7 of the Arbitration Act, despite the contract containing an arbitration clause which mandates disputes be referred to arbitration. The court emphasized that the...

Source-derived case information.

Citation
[2021] KEHC 4167 (KLR)
Parties
Plaintiff: Simon Karanja Ngugi; Defendant: Margaret Wanjiru Kihanya
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Case Number
Commercial Civil Case E528 of 2020
Procedural Posture
Injunction Application / Ruling on Interlocutory Application for Injunction Pending Arbitration
Outcome
Application dismissed with costs to the Defendant.
Judges
JM Mativo
Legal Topics
Interim Injunctions, Arbitration Clauses, Party Autonomy, Contractual Disputes, Interim Measures, Liquidated Damages
Source Language
en
Commercial and Corporate Civil Procedure Interim Injunctions Arbitration Clauses Party Autonomy Contractual Disputes Interim Measures Liquidated Damages

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Parties

Simon Karanja Ngugi

Plaintiff

Margaret Wanjiru Kihanya

Defendant

Procedural Posture

Injunction Application / Ruling on Interlocutory Application for Injunction Pending Arbitration

  1. 1 Whether the court has jurisdiction to grant an interim injunction where the contract contains an arbitration clause.
  2. 2 Whether the application for injunction is competent having been brought under the Civil Procedure Rules instead of the Arbitration Act.
  3. 3 Whether the applicant has satisfied the legal tests for grant of an interlocutory injunction.

Ratio Decidendi

The court held that the application for an interim injunction was fatally incompetent as it was brought under the Civil Procedure Rules rather than Section 7 of the Arbitration Act, despite the contract containing an arbitration clause which mandates disputes be referred to arbitration. The court emphasized that the Arbitration Act is a complete code and restricts court intervention to specific instances. Even if the application were competent, the Plaintiff failed to establish a prima facie case, irreparable harm, or that the balance of convenience favoured granting the injunction. The Plaintiff's claim was for a liquidated sum, which could be compensated by damages, and there were...

Court Disposition

Application dismissed with costs to the Defendant.

Orders

  • The Plaintiff's application dated 4th December 2020 is dismissed with costs to the Defendant.
  • Right of appeal is reserved.