[2019] KECA 999 (KLR)

[2019] KECA 999 (KLR)

The Court of Appeal found that the High Court erred in striking out the appellant's defence on the basis that the set-off or counterclaim was not a defence and was frivolous. The appellate court held that, as a matter of law, a set-off or counterclaim—even if not perfectly pleaded—can constitute a bona fide triable...

Source-derived case information.

Citation
[2019] KECA 999 (KLR)
Parties
Appellant: Twiga Chemical Industries Limited; Respondent: Rotam Agrochemical Co. Ltd
Court
Court of Appeal
Court Station
Court of Appeal at Nairobi
Jurisdiction
Kenya
Case Number
Civil Appeal 16 of 2016
Procedural Posture
Civil Appeal / Judgment
Outcome
appeal_allowed
Judges
J Wakiaga, RN Nambuye, K M'Inoti
Legal Topics
Striking Out of Pleadings, Set Off and Counterclaim, Arbitration Clauses, Summary Judgment, Triable Issues, Discretion of Court
Source Language
en
Commercial and Corporate Civil Procedure Striking Out of Pleadings Set Off and Counterclaim Arbitration Clauses Summary Judgment Triable Issues Discretion of Court

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Parties

Twiga Chemical Industries Limited

Appellant

Rotam Agrochemical Co. Ltd

Respondent

Procedural Posture

Civil Appeal / Judgment

  1. 1 Whether the High Court erred in striking out the appellant's defence as frivolous, vexatious, and an abuse of court process.
  2. 2 Whether the set-off or counterclaim raised by the appellant constituted a bona fide triable issue that should have been determined at trial.
  3. 3 Whether the suit should have been referred to arbitration in light of the arbitration clause in the agreement between the parties.

Ratio Decidendi

The Court of Appeal found that the High Court erred in striking out the appellant's defence on the basis that the set-off or counterclaim was not a defence and was frivolous. The appellate court held that, as a matter of law, a set-off or counterclaim—even if not perfectly pleaded—can constitute a bona fide triable issue and should be allowed to proceed to trial. The court emphasized that the power to strike out pleadings is draconian and should only be exercised where the pleading is incurable by amendment and discloses no semblance of a defence. The existence of a set-off or counterclaim raised a substantive issue as to the indebtedness between the parties, which should be determined at...

Court Disposition

appeal_allowed

Orders

  • The ruling of the High Court (Mabeya, J.) made on 25th March, 2013 is set aside.
  • The notice of motion dated 7th May, 2012 is dismissed.