[2018] KEELRC 102 (KLR)
The court found that since the claimant's own pleadings state that he was employed by New Ocean Transporters Ltd, a limited liability company, and not by Asif Jetha in his personal capacity, there is no reasonable cause of action against Asif Jetha. The law recognizes a company as a separate legal entity from its...
Source-derived case information.
- Citation
- [2018] KEELRC 102 (KLR)
- Parties
- Claimant: Sultan Karmali Hasham; Respondent: Asif Jetha T/A New Ocean Transporters Ltd
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Mombasa
- Jurisdiction
- Kenya
- Case Number
- Cause 545 of 2017
- Procedural Posture
- Employment Cause / Ruling on Notice of Motion to Strike Out Party
- Outcome
- Application allowed. Asif Jetha struck out as a party. Claimant to amend claim.
- Judges
- L Ndolo
- Legal Topics
- Proper Parties, Corporate Personality, Strike Out Application
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Sultan Karmali Hasham
Claimant
Asif Jetha T/A New Ocean Transporters Ltd
Respondent
Procedural Posture
Employment Cause / Ruling on Notice of Motion to Strike Out Party
Legal Issues
- 1 Whether Asif Jetha can be sued in his personal capacity for actions of New Ocean Transporters Ltd.
- 2 Whether the claim discloses a reasonable cause of action against Asif Jetha.
Ratio Decidendi
The court found that since the claimant's own pleadings state that he was employed by New Ocean Transporters Ltd, a limited liability company, and not by Asif Jetha in his personal capacity, there is no reasonable cause of action against Asif Jetha. The law recognizes a company as a separate legal entity from its shareholders or directors. Therefore, Asif Jetha was improperly joined as a party to the proceedings, and his name should be struck out from the claim.
Court Disposition
Application allowed. Asif Jetha struck out as a party. Claimant to amend claim.
Orders
- The name of Asif Jetha is struck off from the proceedings.
- The claimant is directed to amend his claim accordingly.
Full Case Text
Judgment text and source record
22 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT MOMBASA
CAUSE NO 545 OF 2017
SULTAN KARMALI HASHAM......................................................CLAIMANT
VS
ASIF JETHA T/A NEW OCEAN TRANSPORTERS LTD.....RESPONDENT
RULING
1. This ruling responds to an application brought by Asif Jetha by way of Notice of Motion dated 24th September 2018. The application, which is supported by Jetha’s own affidavit seeks orders to strike out the Claimant’s claim as against Asif Jetha on the basis that it discloses no reasonable cause of action against him.
2. The grounds on the face of the application are as follows:
a) The suit is unsustainable against Asif Jetha as an individual cannot and does not trade as a limited liability company;
b) A limited liability company is an independent legal entity capable of suing and being sued;
c) The Statement of Claim in paragraph 3 alleges that the employer is a limited company and not an individual and hence no cause of action against the said Asif Jetha has been established.
3. The Claimant did not oppose the application. Further, in his pleadings filed in court he states that he was an employee of New Ocean Transporters Ltd. The Court therefore found no reason for joiner of Asif Jetha in these proceedings.
4. Consequently, the name of Asif Jetha is struck off and the Claimant is directed to amend his claim accordingly.
5. The costs of the application will be in the cause.
6. Orders accordingly.
DATED SIGNED AND DELIVERED AT MOMBASA THIS 13TH DAY OF DECEMBER 2018
LINNET NDOLO
JUDGE
Appearance:
Miss Mutune for the Applicant
No appearance for the Claimant/Respondent