[2020] KEHC 9608 (KLR)
The court determined that it would be a violation of the defendant's right to be heard if it were to act on the plaintiff's accountant's report without first giving the defendant an opportunity to review and respond to it. Accordingly, the court ordered that the plaintiff serve the report on the defendant, and the...
Source-derived case information.
- Citation
- [2020] KEHC 9608 (KLR)
- Parties
- Plaintiff: Stanley Mwangi Gachugu; Plaintiff: Bilha Waruguru Mwangi; Plaintiff: Vinco Foot Wear; Defendant: Barclays Bank of Kenya Ltd
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Suit 212 of 2015
- Procedural Posture
- Civil Suit / Ruling on Post Judgment Valuation Procedure
- Outcome
- Interlocutory order; matter stood over for mention.
- Judges
- MM Kasango
- Legal Topics
- Bank Liability, Fraudulent Conversion, Compensation Assessment, Share Valuation
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Stanley Mwangi Gachugu
Plaintiff
Bilha Waruguru Mwangi
Plaintiff
Vinco Foot Wear
Plaintiff
Barclays Bank of Kenya Ltd
Defendant
Procedural Posture
Civil Suit / Ruling on Post Judgment Valuation Procedure
Legal Issues
- 1 Whether the defendant should be given an opportunity to respond to the plaintiff's accountant's report on the value of shares for compensation purposes.
- 2 Whether the court can act on the plaintiff's valuation report without serving it on the defendant.
Ratio Decidendi
The court determined that it would be a violation of the defendant's right to be heard if it were to act on the plaintiff's accountant's report without first giving the defendant an opportunity to review and respond to it. Accordingly, the court ordered that the plaintiff serve the report on the defendant, and the defendant be allowed to present its own report if it so wishes, before the court makes a final order on the judgment. This ensures adherence to the principles of natural justice and fair hearing.
Court Disposition
Interlocutory order; matter stood over for mention.
Orders
- Plaintiff to serve the accountant's report on the defendant.
- Defendant granted opportunity to respond and/or present its own report.
Full Case Text
Judgment text and source record
24 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
COMMERCIAL AND TAX DIVISION
CIVIL SUIT NO. 212 OF 2015
STANLEY MWANGI GACHUGU
BILHA WARUGURU MWANGI
T/A VINCO FOOT WEAR.............................. PLAINTIFFS
- VERSUS -
BARCLAYS BANK OF KENYA LTD........... DEFENDANT
RULING
1. A preliminary decree was entered in favour of the plaintiff on 4th October 2019. The terms of the preliminary decree, in that judgment were:
“Judgment is hereby entered, and a preliminary decree shall issue in the following terms;
(a) The defendant shall compensate the plaintiff for their share certificates fraudulently sold by the defendant which compensation shall be at the prevailing current market value of those shares. The plaintiff shall provide evidence of the current prevailing market value of the shares at a date which shall be fixed by the court.”
2. On 3rd December 2019, when the court was to receive the value of the shares, only the plaintiffs learned advocate attended court. The plaintiff’s advocate gave to the court a detailed & report, prepared for the plaintiff, by a Certified Public Accountant. As I began to look at the report it occurred to me that if I act on that report without the same being served on the defendant the defendant will have been denied the right to be heard.
3. Accordingly at the reading of this Ruling, I will give the plaintiff opportunity to serve the report on the defendant and the defendant will be given an opportunity, if it so wishes, to present its own report before the court makes the final order on the judgment of 4th October 2019.
4. This matter shall be mentioned on 29th July, 2020 for the defendant to have an opportunity to respond to the plaintiff’s accountant’s report.
Orders accordingly.
DATED, SIGNED and DELIVERED at NAIROBI this 14th day of APRIL, 2020.
MARY KASANGO
JUDGE
ORDER
In view of the declaration of measures restricting court operations due to the COVID-19 pandemic and in light of the directions issued by his Lordship, the Chief Justice on 15th March, 2020, this decision has been delivered to the parties online with their consent. They have waived compliance with Order 21 rule 1 of the Civil Procedure Ruleswhich requires that all judgments and rulings be pronounced in open court.
MARY KASANGO
JUDGE