Kyalo & 2 others v Muthama & 8 others (Commercial Case E001 of 2021) [2022] KEHC 9771 (KLR) (21 July 2022) (Ruling)
Neutral citation:
[2022] KEHC 9771 (KLR)
Republic of Kenya
Commercial Case E001 of 2021
GV Odunga, J
July 21, 2022
Between
Chris Kyalo
1st Plaintiff
Edward Musau
2nd Plaintiff
Masila Kivaya (Suing on behalf of Officials of Kangundo Town Business Community)
3rd Plaintiff
and
Stephen Muthama
1st Defendant
Josephine Nthenya Peter
2nd Defendant
Alexander Mutisya
3rd Defendant
Esther Ndinda
4th Defendant
Janet Phillip
5th Defendant
Joseph Kitonyi Kitonga
6th Defendant
Leonard Kimeu Ndeti
7th Defendant
Elizabeth Ndunge
8th Defendant
Rositica Mulungye
9th Defendant
Ruling
1.By an Originating Summons dated 31st August,2021, filed under Certificate of Urgency and premised on Article 163(4)(a) of the Constitution, Order 50 Rule 1, Order 40(1) and (2), Order 46 of the Civil Procedure Rules and the inherent Powers of this Court, the Respondents herein suing as the Plaintiffs in person sought a temporary injunction restraining the Applicants herein who are sued as the Defendants acting by themselves and/or agents from conducting the official duties and/or transacting any business on behalf of the Kangundo Town Business Community, a non-registered Community Based Organization pending the hearing and determination of this suit.
2.According to the Respondents, the Applicants herein have staged a coup in leadership of the Community Based Organization and replaced them, the duly elected officials without public participation and against the Constitution of the organization. It was averred that the Respondents have asserted that the community affairs are at risk as the same have been illegally taken over by non-elected officials leaving the business community in total confusion that will lead to them suffering an irreparable loss unless the court intervenes.
3.Vide the Notice of Motion dated 8th November, 2021 premised on Order 2 Rule15(1)(b) and (d) of the Civil Procedure Rules, 2010, the Applicants sought orders that the Respondents Originating Summons be struck out with costs to the Defendants/Applicants.
4.The application was supported by the supporting affidavit of Stephen Muthama sworn on even date. According to the deponent, the four Plaintiffs/Respondents merely constitute a third of the purported office bearers out of the eleven (11) officials and therefore lack the quorum. He averred that in any case the Plaintiffs/Respondents term in office expired on 8/03/2021, fresh elections were held later and new office bearers put in. According to the deponent, the Plaintiffs/Respondents cannot challenge the elections and/or the leadership of the new office bearers in the manner sought in the Originating Summons hence the Originating Summons ought to be dismissed and/or struck out with costs to the Defendants/Applicants.
5.On behalf of the Applicants, it was submitted that the only issue for determination is whether the Originating Summons dated 31/08/2021 discloses a reasonable cause of action. Firstly, it is submitted that the provisions of law quoted and the orders sought do not fall under the ambit of the Originating Summons and does not raise any and/or any reasonable cause of action against the Applicants herein or at all.
6.According to the Applicants, Chris Kyalo, the 1st Plaintiff/Respondent has not attached any authority to make the averments on his behalf and on behalf of the other Respondents in his affidavit in support of the Originating Summons and his replying affidavit both sworn by him on 31/08/2021 and 14/04/2022 respectively. It was submitted that the wording of the said affidavits clearly confirm that Chris Kyalo is speaking for himself and not on behalf of any entity or other individuals. It was submitted that there is no document signed by the members confirming that they are part of the Originating Summons.
7.It was further submitted that since Kangundo Town Business Community is a non-registered entity, its members can only sue in their names and must append their signatures to the court papers hence the Respondents herein do not have the requisite representative capacity. In addition, it was submitted that a non-existence entity does not have the capacity to sue or be sued and reliance was placed on the case of Elijah Sikona & George Pariken Narok on behalf of Trusted Society of Human Rights Alliance vs. Mara Conservancy & 5 Others [2014] eKLR.
8.It was submitted that the 1st Respondent deposed in his replying affidavit that 11 officials were elected to run the affairs of the group but it is only the four (4) Plaintiffs/Respondent who have sued which according to the Applicants show a clear lack of quorum. According to the Applicants, the court should note that the Respondents have not procured authority and/or consent to bring the suit on behalf of the office bearers and/or purported members of the alleged organization.
9.According to the Applicants, the Respondents cannot purport to bring the case on behalf of the alleged 684 members when they are not the new office bearers put in and in addition, the Respondents cannot challenge the elections and/or leadership of the new office bearers through and Originating Summons but through a Petition and/or a Plaint so that the issues raised may be canvassed at length, procedurally and on merit.
10.Based on the above, it was submitted that the Plaintiffs/Respondents have no locus standi to lodge the suit and purport to act on behalf of Kangundo Town Business Community Organization. Reliance was placed on the case of David Kamau Njoroge (Deceased) v Savings and Loan(K) Limited, Nairobi Milimani HCCC No. 629 of 2005 that a suit instituted by a person who has no capacity or locus to institute it, is a non-suit and is null and void.
11.According to the Applicants, Originating Summons are filed where there is a straightforward and not complex issue(s) to be canvassed hence the prayers seeking revocation of appointment of office bearers, deregistration of the Defendants/Applicants, calling fresh elections cannot issue in the circumstances. The order seeking restoration of MCA Moses Musyoka and his associates to restore the 1st Plaintiff/Respondent removed sign board cannot be canvassed without joining them as parties in this suit.
12.Based on the foregoing, the Applicants submitted that the Originating Summons is scandalous since it is brought by persons who purport to be litigating on behalf of a non-registered entity and purport to be office bearers when their term is long expired. According to the Applicants, the suit is frivolous as it has no substance. In addition, the suit is fanciful and would waste the courts time to file a defence and canvass baseless issues as there are no reasonable grounds advanced. According to the Applicants, the suit is vexatious for it has no foundation but only brought in as a form of revenge by the Respondents for being ousted out of office.
13.According to the Applicants, canvassing the pleadings herein would only lead to prejudice, embarrass or delay justice since the Originating Summons is ambiguous and unintelligible. Reliance was placed on the case of Madison Insurance Company Limited vs. Augustine Kamanda [2020] eKLR at paragraph 13-21 thereof.
Respondents’ Case
14.On behalf of the Respondents, it is submitted that under Article 22 of the Constitution, any person has a right to institute civil proceedings in particular at sub-article 2(b) which provides for institution of a court proceedings by a person acting as a member of, or in the interest of, a group or class of persons. Based on the provision, it was submitted that the Plaintiffs/ Respondents did institute this suit on their behalf and on behalf of other officials and members of Kangundo Business Community which is a Community Based Organization.
15.According to the Respondents, it is not in dispute that the entity is unregistered but was established on 8/03/2017 and is governed by a written Constitution. It was submitted that it is not in dispute that the officials of the entity were duly elected by members of the entity during an Annual General Meeting. The Respondents contended that no evidence was presented nor was it alleged that the Plaintiffs/Respondents are not members of, or not acting in the interest of the entity or that the suit is instituted is unrepresentative of the interest it purports to represent or is founded on bad faith. According to the Respondents, they are rightfully before the court due to violation or a threat to their rights. Reliance was placed on the doctrine of legitimate expectation as pronounced in Kaplana H.Rawal vs. Judicial Service Commission& 4 Others (2015) eKLR and Communication Commission of Kenya & 5 Others vs. Royal Media Services Limited & 5 Others(2014) eKLR.
16.It was submitted that the Applicants have not explained how they got elected as officials of the organization. That no election or Annual General Meeting was called as per the organization Constitution by the Secretary. According to the Respondents, the Applicants did not tender minutes of the alleged meeting to elect them as the office bearers.
17.It was noted that while the Applicants acknowledge that the organization is not registered, they have not questioned its existence and how it runs its day to day business. It was submitted that the Applicants have been members of the organization since its formation and have been active all through. That it is their action of ascending to lead the organization that is being questioned for violating the organization Constitution. Reliance was placed on Mativo J’s observation in Shamsher Kenya Limited vs. Director of Public Prosecution & 2 Others (2018) eKLR.
18.According to the Respondents, the Applicants have not tendered any evidence to warrant the court to grant the orders sought in their application. It was urged that since the Respondents have a cause of action against the Applicants, the application should be dismissed with costs as the Applicants will not suffer any prejudice if the matter is heard on merits. judgment is delivered as there are no explanation as to why they admit.
Determination
19.I have considered the application, affidavit in support and in opposition and the submissions as well as the cases relied upon.
20.In my view the issues that emerge for determination are:-1.Whether the Plaintiffs/Respondents have locus standi to lodge the suit and purport to act on behalf of Kangundo Town Business Community Organization.2.Whether the Originating Summons dated 31st August, 2021 discloses a reasonable cause of action hence should not be struck out with costs
21.The issue of locus standi raises a point of law that touches on the jurisdiction of the Court, and it should be resolved at the earliest opportunity. In Mary Wambui Munene vs. Peter Gichuki Kingara and Six Others, Sup. Ct. Petition No. 7 of 2013; [2014] eKLR, this Court held (at paragraphs 68 and 69) that the question of jurisdiction is a “pure question of law,” and should be resolved on a priority basis.
22.Locus standi is defined in Black’s Law Dictionary, 9th Edition (page 1026) as “the right to bring an action or to be heard in a given forum”.
23.In the case of Law Society of Kenya vs. Commissioner of Lands & Others, Nakuru High Court Civil Case No. 464 of 2000, the Court held that;
24.In Alfred Njau and Others vs. City Council of Nairobi (1982) KAR 229, the Court also held that;-
25.With the promulgation of the Kenyan Constitution, 2010, the scope of locus standi was enlarged as envisaged under Articles 22 and 258. In John Wekesa Khaoya vs. Attorney General, Petition No. 60 of 2012; [2013] eKLR the High Court thus expressed the principle:
26.According to the Respondents, Article 22 of the Constitution, 2010 gives any person the right to institute civil proceedings. Article 22 of the Constitution provides that:
27.Article 258, on the other hand, provides that;
28.In Michael Osundwa Sakwa vs. Chief Justice and President of the Supreme Court of Kenya & another [2016] eKLR the Court, while referring to the matter of Ms. Priscilla Nyokabi Kanyua vs. Attorney General & Interim Independent Electoral Commission Nairobi HCCP No. 1 of 2010 asserted that;
29.Similarly, the Court in the matter of Khelef Khalifa El-Busaidy vs. Commissioner of Lands & 2 others [2002] eKLR while canvassing the issue of Locus Standi stated thus:
30.According to the Plaintiffs/Respondents, the suit has been instituted on their behalf and on behalf of the other officials and members of the entity. According to the Respondents, their rights are being violated or threatened with violation by the Applicants who have ascended to the leadership of the organization without public participation and in violation of the Constitution of the entity. The Plaintiffs/Respondent asserted that they have legitimate expectation sine they are the duly elected officials of Kangundo Town Business Community and not the Defendants/ Applicants.
31.On the part of the Applicants, they contend that Chris Kyalo, the 1st Respondent has not attached any authority to confirm that he swore the affidavits in his behalf and on behalf of the other Respondents. That there is no document signed by the members confirming they are part of the Originating Summons. The Applicants contended that the four (4) Respondents had not procured any authority and/consent from the other officials who are alleged to have been duly elected together with the Respondents.
32.In addition, it was submitted that the suit brought by the Respondents is a non-starter since the entity is not registered. According to the Applicants, a non-existence entity does not have the capacity to sue or be sued hence the Respondents do not have the locus standi to sue on its behalf. To the Applicants, the Respondents do not have the requisite representative capacity. In support of their case, the Applicants relied on the case of Elijah Sikona & George Panken Narok on behalf of Trusted Society of Human Rights Alliance vs. Mara Conservancy & 5 Others (2014) eKLR, where Anyara Emukule J, opined as follows:-13.Further the action herein was filed on 30th April 2013, when the registration of Trusted Society of Human Rights Alliance was still subsisting. However the said organization was among those whose certificates of Registration were cancelled by Gazette Notice Number 11962 of First August 2013, published on 16th August 2013. Currently therefore there is no lawfully existing body on whose behalf the Plaintiffs can purport to act. It would therefore be an abuse of the Court process to have a suit pending by or on behalf of a non-existent organization. It would defeat the entire overriding objective of Civil Litigation to apply both the Court’s time and resources not for the proper administration of justice, but on imaginary and illusory wrongs…….”
33.In my view the above decision is distinguishable from the facts in this case in the sense that Kangundo Town Business Community had ongoing activities despite not being registered. The entity in that case having been deregistered by a legal instrument ceased to exist both legally and factually. In this case though the organization is not registered, it is clear from both parties that the entity exists with a Constitution that has governed its affairs and has duly elected officials .
34.The Applicants argument that Chris Kyalo, the 1st Respondent does not have the capacity to swear the affidavits to the Originating Summons due to lack of an authority to confirm that he swore on his behalf and on behalf of other Plaintiffs/ Respondent also in my view does not suffice. I note that at paragraph 2 of his supporting affidavit, he averred that he had the authority of his co-Plaintiffs to swear the affidavit on their and his own behalf. In my view, despite lack of a written authority from the other Plaintiffs/Respondents, his averment is sufficient.
35.It is submitted on behalf of the Applicants that since there were 11 duly elected officials to ran the affairs of the organization, the Plaintiffs/Respondents ought to have procured and authority and/or consent from the other office bearers.
36.I associate myself with the case of Presbyterian Foundation & another vs. East African Partnership Limited & Another [2012] eKLR where Court expressed itself as follows:-
37.In the premises I find that the Plaintiffs/Respondents have the locus standi to lodge the Originating Summons dated 31st August, 2021.
38.As to whether the said Originating Summons should be struck out for not disclosing a reasonable cause of action, the application herein is principally brought under Order 2 rule 15(1) (b) and (d) of the Civil Procedure Rules, 2010 which provides as follows:
39.In the case of D.T Dobie & Company Kenya Limited –vs- Muchina (1980) KLR, the Court of Appeal stated as follows:
40.In Yaya Towers Limited vs. trade Bank Limited (In Liquidation) Civil Appeal No. 35 of 2000, the court of Appeal expresses itself thus:
41.In Co-Operative Merchant Bank Ltd. vs. George Fredrick Wekesa Civil Appeal No. 54 of 1999 the Court of Appeal stated as follows:
42.According to the Defendants/ Applicants, the Plaintiffs/Respondents Originating Summons is scandalous, frivolous, and vexatious and is otherwise an abuse of the process of the Court.
43.A pleading is scandalous if it states (i) matters which are indecent; or (ii) matters that are offensive; or (iii) matters made for the mere purpose of abusing or prejudicing the opposite party; or (iv) matters that are immaterial or unnecessary which contain imputation on the opposite party; or (v) matters that charge the opposite party with bad faith or misconduct against him or anyone else; or (vi) matters that contain degrading charges; or (vii) matters that are necessary but otherwise accompanied by unnecessary details. See Blake vs. Albion Life Ass. Society (1876) LJQB 663; Marham vs. Werner, Beit & Company (1902) 18 TLR 763; Christie vs. Christie (1973) LR 8 Ch 499.
44.However, the word “scandalous” for the purposes of striking out a pleading under Order 2 rule 15 of the Civil Procedure Rules is not limited to the indecent, the offensive and the improper and that denial of a well-known fact can also be rightly described as scandalous. See JP Machira vs. Wangechi Mwangi and Nation Newspapers Civil Appeal No. 179 of 1997.
45.But they may not be scandalous if the matter however scandalising is relevant and admissible in evidence in proof of the truth of the allegation in the plaint or defence so that when considering whether the matter is scandalous regard must be had to the nature of the action.
46.A matter is frivolous if (i) it has no substance; or (ii) it is fanciful; or (iii) where a party is trifling with the Court; or (iv)when to put up a defence would be wasting Court’s time; or (v) when it is not capable of reasoned argument. See Dawkins vs. Prince Edward of Save Weimber (1976) 1 QBD 499; Chaffers vs. Golds Mid (1894) 1 QBD 186.
47.Again a pleading or an action is frivolous when it is without substance or groundless or fanciful and is vexatious when it lacks bona fides and is hopeless or offensive and tends to cause the opposite party unnecessary anxiety, trouble and expense. See Bullen & Leake and Jacobs Precedents of Pleading (12th Edn.) at 145.
48.A matter is said to be vexatious when (i) it has no foundation; or (ii) it has no chance of succeeding; or (iii) the defence (pleading) is brought merely for purposes of annoyance; or (iv) it is brought so that the party’s pleading should have some fanciful advantage; or (v). where it can really lead to no possible good. See Willis Vs. Earl Beauchamp (1886) 11 PD 59.
49.Pleading tend to prejudice, embarrass or delay fair trial when (i) it is evasive; or (ii) obscuring or concealing the real question in issue between the parties in the case. It is embarrassing if (i) It is ambiguous and unintelligible; or (ii) it raises immaterial matter thereby enlarging issues, creating more trouble, delay and expense; or (iii) it is a pleading the party is not entitled to make use of; or (iv) where the defendant does not say how much of the claim he admits and how much he denies. See Strokes vs. Grant (1878) AC 345; Hardnbord vs. Monk (1876) 1 Ex. D. 367; Preston vs. Lamont (1876).
50.A pleading which tends to embarrass or delay fair trial is described as a pleading which is ambiguous or unintelligible or which states immaterial matters and raises irrelevant issues which may involve expenses, trouble and delay and that which contains unnecessary or irrelevant allegations which will prejudice the fair trial of the action and lastly a pleading which is abuse of the process of the court really means in brief a pleading which is a misuse of the Court machinery or process. See Trust Bank Limited vs. Hemanshu Siryakat Amin & Company Limited & Another Nairobi HCCC No. 984 of 1999.
51.A pleading is an abuse of the process where it is frivolous or vexatious or both.
52.In this case, the Respondents have attached minutes of the entity held on 8th March, 2017 which show the Respondents to be part of the entity leadership. The 1st Respondent is indicated to be the Chairperson of the entity as well as the other Respondents have positions in the entity. The Respondents submitted that the Applicants did not explain how they got elected since there is no evidence of minutes from the Applicants. According to the Respondents, the Applicant are being questioned on the action of ascending to the leadership of the entity on violation of the Constitution which governed the entity.
53.In my view, the issues complained of by the Plaintiffs/Respondents in the Originating Summons are issues of law and fact that the trial court require to determine in a full hearing. Under Article 50(1) of the Constitution, every person has the right to have any dispute that can be resolved by the application of the law decided in a fair and public hearing before a court or if appropriate, another independent and impartial tribunal or body. Under Article 25 that right cannot be limited. Order 50 Rule 10 (2) is to the effect that no application shall be defeated on a technicality or for want of form that does not affect the substance of the application as well as Article 159(2) (d) of the Constitution that enjoins court to administer justice without undue regard to technicality.
54.I appreciate that clearly untenable proceedings ought not to be entertained by the Court since as held by the Court of Appeal in Muchanga Investments Limited vs. Safaris Unlimited (Africa) Ltd & 2 Others Civil Appeal No. 25 of 2002 [2009] KLR 229:
55.As appreciated by Omollo, JA in the case of J P Machira vs. Wangethi Mwangi & Another Civil Appeal No. 179 of 1997, although disputes ought to be heard by oral evidence in court, there is no magic in holding a trial and receiving oral evidence merely because it is normal and usual to do so since a trial must be based on issues; otherwise it may become a farce.
56.In this case however, I find that these pleadings are not in such a state that no amount of resuscitation can breathe life into them. Consequently, I find that it would not promote the course of justice to guillotine the same at this stage. In my view the Originating Summons dated 31st August,2021 ought to be heard and facts ascertained to arrive at a just determination.
57.In the premises, I find the Notice of Motion devoid of merits and dismiss it with costs.
58.It is so ordered.
READ, SIGNED AND DELIVERED IN OPEN COURT AT MACHAKOS THIS 21ST DAY OF JULY, 2022.G V ODUNGAJUDGEDelivered in the presence of:Mr Musya for Mr Kyalo for the Defendant/ApplicantMr Mwongela for the Plaintiff/RespondentCA Susan