[2022] KEHC 17073 (KLR)

[2022] KEHC 17073 (KLR)

The court found that the defendant had made reasonable efforts to ascertain the plaintiff's legal status and assets, including inquiries with the Registrar of Companies, which yielded no confirmation of the plaintiff's existence. The plaintiff failed to provide any documentary evidence of its incorporation,...

Source-derived case information.

Citation
[2022] KEHC 17073 (KLR)
Parties
Plaintiff: Stone Crest Limited; Defendant: Standard Chartered Bank Limited
Court
High Court
Court Station
High Court at Mombasa
Jurisdiction
Kenya
Case Number
Civil Case 38 of 2007
Procedural Posture
Civil Case / Ruling on Application for Security for Costs
Outcome
Application allowed; security for costs ordered.
Judges
MN Mwangi
Legal Topics
Security for Costs, Company Status, Burden of Proof, Affidavit Competency, Judicial Discretion
Source Language
en
Civil Procedure Commercial and Corporate Security for Costs Company Status Burden of Proof Affidavit Competency Judicial Discretion

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Parties

Stone Crest Limited

Plaintiff

Standard Chartered Bank Limited

Defendant

Procedural Posture

Civil Case / Ruling on Application for Security for Costs

  1. 1 Whether the affidavit in support of the application for security for costs is competent.
  2. 2 Whether the defendant's application for security for costs is merited.

Ratio Decidendi

The court found that the defendant had made reasonable efforts to ascertain the plaintiff's legal status and assets, including inquiries with the Registrar of Companies, which yielded no confirmation of the plaintiff's existence. The plaintiff failed to provide any documentary evidence of its incorporation, existence, or ownership of the suit property, despite being best placed to do so. The court held that the mere fact that the supporting affidavit was sworn by the defendant's advocate did not render it incompetent, as the facts deposed were within his knowledge as the advocate on record. The court exercised its discretion to order security for costs, finding that the defendant's...

Court Disposition

Application allowed; security for costs ordered.

Orders

  • Plaintiff to deposit Kshs 2,400,000 in an interest-bearing bank account in the joint names of the advocates for the parties within 30 days as security for the defendant's costs.
  • If the plaintiff fails to deposit the security within the stipulated period, the suit shall be struck out with costs to the defendant.