Umoja Rubber Products Limited v Kenya Power & Lighting Company Limited (Civil Appeal 175 of 2019) [2023] KEHC 19751 (KLR) (5 July 2023) (Judgment)
Neutral citation:
[2023] KEHC 19751 (KLR)
Republic of Kenya
Civil Appeal 175 of 2019
DKN Magare, J
July 5, 2023
Between
Umoja Rubber Products Limited
Appellant
and
Kenya Power & Lighting Company Limited
Respondent
(Arisng from the decision of Hon E. Muchoki, in Mombasa SRMC C1727 of 2018 given on 6/8/2019.)
Judgment
1.The appeal is a straight forward one. The appeal arose from the decision of Hon E. Muchoki, in Mombasa SRMC C1727 of 2018 given on 6/8/2019. The record of Appeal was filed on 21/9/2022 and I gave directions for hearing of the appeal.
2.It is an appeal from the decision of the lower court declining jurisdiction. This appeal is unique in that parties were busy arguing on repealed law and convinced the court to strike out pleading on basis of repealed law.
3.Given the nature of the ruling, the court’s powers in respect hereto are immense. Contrary to the normal situation where the court defers to the finding of fact as held in the case of Selle & Another v Associated Motor Boat Co. Ltd & Others [1968] EA 123, this court is dealing with the understanding on the points of law involved. In that case the court of Appeal stated as doth: -
4.The Court is not involved in the finding of fact as the suit was heard on a preliminary objection. In hearing a preliminary objection, this court and the court below have the same jurisdiction. They proceed on an understanding that what is pleaded in the plaint is true. It is what the English common law used to call a demurrer. The locus classicus case of Mukisa Biscuit Manufacturing Co. Ltd V. West End Distributors Ltd [1969] E.A. 696, made this pertinent observation. It said: -
5.In a Tanzanian case of Hammers Incorporation Co. Ltd v The Board Of Trustees Of The Cashewnut Industry Development Trust Fund, where the Court of Appeal, (Rutakangwa, N. P. Kimaro and S. S. Kadage JJA), sitting in Dar es salaam in their decision given on 17/9/2015 regretted that the practice of raising preliminary objection that was frowned upon by the court of appeal in kampala in the Mukisa biscuit case(supra) still persists. They stated as doth: -
6.In the case of Martha Akinyi Migwambo v Susan Ongoro Ogenda [2022] eKLR, justice Kiarie Waweru Kiarie, summarized the preliminary objection as seen from two of the judges in Mukisa Biscuit Manufacturing Co. Ltd. (supra): - nicely
7.A Tanzania Court of Appeal sitting in Dar es Salaam, in Karata Ernest & Others v Attorney General (Civil Revision No. 10 of 2020) [2010] TZCA 30 (29 December 2010), (Luanda, J.A., Ramadhani, C.J., Rutakangwa, JJA), put the issue of preliminary objections in a more succinct manner: -
8.Justice prof J.B. Ojwang J (as he then was) succinctly addressed the issue of preliminary objection in the case of Oraro v Mbaja [2005] eKLR:
9.It is therefore my view that a preliminary objection must be based on current law, and be factual in its constitution. It cannot be based on disputed facts or fats requiring further enquiry. In determining a preliminary objection therefore only 3 documents are required in addition to the constitution. The impugned law, the plaint and preliminary objection. If you have to refer to the defence, then the preliminary objection is untenable
Background
10.In this matter the defendant raised a preliminary objection dated 4/2/2019 in the following term: -a.The defendant shall raise a preliminary objection on the grounds that pursuant to Article 159(2), sections 2,5,6,63, 108,110(1) of the energy act 2006, rule 2 and 4 of the energy complaint and dispute resolution rules ,2012, this honourable court lacks jurisdiction to entertain this matter and the same should be summarily struck out with costs.
11.The court heard the preliminary objection through written submissions and made its ruling on 6/8/2019. The court struck out the suit with costs.
Respondent’s submissions
12.The respondent relied on the decision of Samuel Kamau Macharia & another v Kenya Commercial Bank Limited & 2 others [2012] eKLR, where the supreme court stated as doth: -
13.They relied on the decision of Speaker of the National Assembly v Karume (Civil Application 92 of 1992) [1992] KECA 42 (KLR) (29 May 1992) (Ruling) where the court of appeal stated as doth: -
14.The respondent also relied on the decision of James Kibugi Githinji v Kenya Power & Lighting Company Limited [2016] eKLR, where justice A. Mbogholi Msagha, as then he was stated as doth: -
15.The decision above is not in all fours with the case herein. There are no charges nor are there issues of disconnection. The same applies to the case Royal Reserve Management Company Ltd v Kenya Power & Lighting Company Ltd [2017] eKLR, where the court stated as doth: -(a)any charges; or(b)The application of any deposit; or(c)any illegal or improper use of electrical energy; or(d)any alleged defects in any apparatus or protective devices; or(e)any unsuitable apparatus or protective devices;it shall be referred to the commission.” (emphasis added).20.Section 61(4) thereof provides that:-21.Section 6 of the Energy Act provides that the powers of the Commission include interalia, investigating complaints or disputes between parties with grievances over any matter required under the Energy Act.”
16.Finally, in the case of Alice Mweru Ngai v Kenya Power & Lighting Co. Ltd [2015] eKLR, the party therein was seeking compensation for lawful entry into her land. The question was settlement of compensation.
17.In this appeal they have added the authority of Geoffrey Muthinja & another v Samuel Muguna Henry & 1756 others [2015] eKLR, where the court stated as doth: -
Appellant’s submissions
18.The appellant on the other hand referred to the decision of the Indian court in his Highness The Gaekwar Sarkar of Baroda And Central India Railways v Kachrabhai Kashturchand 1903) XXVI ILR to the effect that no statute confers or clothes anybody to act negligently.
19.They further refer to the authority of Modern Holdings (EA) Limited v Kenya Ports Authority [2020] eKLR where the supreme court held as doth:-
20.Threeways Shipping Services (K) Ltd v Kenya Ports Authority [2012] eKLR that
21.In the related appeal of Kenya Ports Authority v Threeways Shipping Services (K) Limited [2019] eKLR, the court of appeal stated as doth: -
Analysis
22.It is my understanding that jurisdiction is everything. The court is bound to take jurisdiction where it has and down its tools where it does not have jurisdiction. My senior brother Nyarangi JA, as then he was, immortalised these words, in Owners of the Motor Vessel “Lillian S” v Caltex Oil (Kenya) Ltd [1989] eKLR as follows: -
23.What was the claim before the court and what was the authority thereof. In the plaint dated29/8/2018, the Appellant was seeking special damages of Ksh. 329,546. Loss adjustor’s fees of Ksh 31,320 totalling to 360,866. The claim had been field through APA insurance for the right of subrogation.
24.The first tragedy was that the suit was struck on basis of repealed law. By dint of section 224 of the Energy Act 2019, which came into force on 28/3/2019 repealed the Energy Act 2006. The sections referred to are all repealed. It is the duty of the court to know the law. A suit cannot be struck down on basis of repealed law.
25.The appellant filed a 9-paragraph memorandum of appeal. It is repetitive and long winded. It should be concise. Under order 42 rule 1 of the Civil Procedure Rules, a memorandum of appeal should not be argumentative. The said provision states as doth: -
26.The court of Appeal had this to say in regard to rule 86 (which is pari mateira with order 42 Rule 1) in the case of Robinson Kiplagat Tuwei v Felix Kipchoge Limo Langat [2020] eKLR: -
27.Further in Kenya Ports Authority v Threeways Shipping Services (K) Limited [2019] eKLR, the court of appeal observed that: -
28.The memorandum of appeal raises only one issue, that is,
29.The rest of the issues are ancillary, repetitive, prolixious and a waste of judicial time. The question this court will have to deal with is whether the magistrate’s court had jurisdiction to hear and determine this dispute. This is the only issue addressed in submissions before the court below and before this court.
30.In the defence filed, the defendant denied negligence on their part and blamed the plaintiff for the loss that occurred. What I understand is that there is dispute whether the loss was caused by electric fault on part of the respondent or on part of the Appellant. The respondent also stated that they had no contractual obligation to install protective devises. There is no agreement on the actual facts forming the subject matter of the claim.
31.Further, judicial authority is vested in the court. Article 1 (3) of the constitution states as doth: -a.Parliament and the legislative assemblies in the county governments;b.the national executive and the executive structures in the county governments; andc.the Judiciary and independent tribunals.”
32.The judicature act and the Magistrates Court Act gives the lower jurisdiction over civil matters. However, there are claw backs in certain other acts. Section 9 of the Energy Act 2019 establishes the Energy and Petroleum Regulatory Authority.
33.The long title of the repealed act, Energy Act ,2006 was “An Act of Parliament to amend and consolidate the law relating to energy, to provide for the establishment, powers and functions of the Energy Regulatory Commission and the Rural Electrification Authority, and for connected purposes.”
34.The long title of the Energy Act 2019 is “an Act of Parliament to consolidate the laws relating to energy, to provide for National and County Government functions in relation to energy, to provide for the establishment, powers and functions of the energy sector entities; promotion of renewable energy; exploration, recovery and commercial utilization of geothermal energy; regulation of midstream and downstream petroleum and coal activities; regulation, production, supply and use of electricity and other energy forms; and for connected purposes.”
35.Dispute resolution related to negligence is not among the disputes the Energy and Petroleum Regulatory Authority is vested with. The right to appear in court is an inalienable right. It cannot be taken away by inference. Any act prohibiting the court from doing a certain act shall say so expressly. Article 24(1) is more explicit in that respect. It provides as doth: -a.the nature of the right or fundamental freedom;b.the importance of the purpose of the limitation;c.the nature and extent of the limitation;d.the need to ensure that the enjoyment of rights and fundamental freedoms by any individual does not prejudice the rights and fundamental freedoms of others; and the relation between the limitation and its purpose and whether there are less restrictive means to achieve the purpose.”
36.From the nature of dispute, the parties involved in Energy and Petroleum Regulatory Authority are the entities in that field. It is a highly specialized field. Individual consumers are protected as a group. The Respondent, under the new act is the user of energy. It is supplied with energy to connect its customers.
37.The Act does not envisage, the end of the food chain, where small retailers are to be before the tribunal. the tribunal has no capacity to handle disputes of the nature that arise on a day to day.
38.The courts including the court of appeal have dealt with the issue, even during the regime the Electric Power Act, 1997 (No. 11 of 1997. This was repealed by the energy act 2006. The later was repealed by the Energy act, 2019. The energy and petroleum authority is not a tribunal envisaged under Article 1(3) of the constitution. It has no judicial function.
39.It cannot purport to hear disputes on subrogation and the negligence dispute. The act deals with the energy entities that have the means and wherewithal to travel to Nairobi to deal with the upstream and middle stream energy issues including downstream issues. Peripheral issues including positioning of poles, removal of poles loses due to adulterated fuel, faulty power lines and such minors issues shall remain within the province of this court and the magistrates court.
40.In the case of Robai Kadili Agufa & another v Kenya Power & Lighting Co Ltd [2015] eKLR, the court, E.C. MWITA stated as doth: -
41.In James Mwaura Ndung’u v Kenya Power and Lighting Co. Ltd [2016] eKLR, the court was of the view that the disputes related to certain disputes should be referred to the commission (now authority) the court, justice Dr Sergon stated as doth: -a.Any charges orb.The application of and deposit,c.Any illegal improper use of electrical energy ord.Any illegal defects in any apparatus or protective devices ore.Any unsuitable apparatus or protective devices, it shall be referred to the commission.
42.That case turned on its own decision. The law which is binding on this court and the court below is set of in Kenya Power and Lighting Company Ltd v joseph Kiprono Kosgei Civil Appeal No.333 of 2005.
43.The nature of the case filed by the plaintiff does not deal with metering, disconnection or supply. It is a dispute in negligence. Whether the case has merit by itself, it is the court below to decide.
44.In Eldoret White Castle Motel Limited v Kenya Power and Lighting Company Ltd [2010] eKLR, the court of appeal was of the view that matters outside the metering are outside the remit of the tribunal. The court of Appeal stated as follows: -
45.The reading of both the repealed act and the energy act 2019, I am certain that the court below erred in disregarding binding court of appeal decisions. I also noted that in spite of both parties referring to authorities, the court simply did not refer to any in its decision.
46.Before departing, I will need to deal with the reference to article 159(20 as a constitution panacea to all infractions. The constitution is a living documents moving with times with its articles working in harmony. It does not have one section decapitating another. Therefore, Article 159 should be read with article 50 and 24 to produce a wholesome reading.
47.In the case of Katiba Institute & 3 others v Attorney General & 2 others [2018] eKLR, justice EC Mwita, stated as doth: -48.It was stated in Ndyanabo v Attorney General of Tanzania [2001] EA 495, that it is the duty of the person alleging constitutional invalidity of a statute or statutory provision to prove that invalidity.49.Fifth, the Court must also consider the cause- effect in interpreting the Constitution. The purpose of enacting a statute and the effect of implementing the statute will also determine the constitutionality of a statute. In the case of R v Big M Drug Mart Ltd [1985]1 SCR 295, the Supreme Court of Canada observed;50.And In Ng Ka Ling & Another v The Director of Immigration (1999) 1 HKLRD 315.the Court stated;51.Guided by the above principles, we now turn to consider whether the impugned provisions go against Articles of the Constitution as contended by the petitioners. In doing so the Court should bear in mind the principle stated in US v Butler 297 US 1 [1936] that;
48.At the end result litigation and alternative dispute mechanism are given an equal footing. They however, work at a different pedestal. Litigation is a sacrosanct judicial duty that a party cannot easily be driven out of court without an express provision stating so. To remove a legal dispute to a 7-man authority neither has capacity not the knowledge on negligence is to deny a party justice and commit judicial atrocities.
49.It can be recalled that hon C.B. Madan, C.H.E Miller and K.D Potter, JJA in D.T. Dobie & Company (Kenya) Limited v Joseph Mbaria Muchina & another [1980] eKLR had this to postulate: -
50.The appeal has merit. The court had jurisdiction. The questions raised in section 2,5,6, 63, 107,108 and 110 of the repealed act relate to disconnection and use of illegal or substandard apparatus resulting in disconnection. Other relate to metring. Therefore, the court erred in giving up jurisdiction it had. Whereas it feels nice to conclude matters, a court must take jurisdiction it had. The court should also have noted that the defence accepted jurisdiction by filing defence. The Respondent should have, if they thought that the matter should be in a different forum, sought its referral before defending it.
51.Consequently, I find there is merit in this appeal and I allow the same.
Determination
52.The upshot of the foregoing is that I make the following orders: -a.I find there is merit in this appeal and I allow the same set aside ruling and order striking out the suit in the lower court, that is Mombasa SRMCC 1727 of 2018 and reinstate the suit for hearing and final disposal by a court other than Hon. Muchoki.b.A copy of this judgment should be served upon the court.c.The primary filed be fixed for hearing forthwith before the chief magistrate’s court. Meanwhile the matter shall be fixed for mention on 21st July 2023 for directions before the Chief Magistrates Court.d.The appellant shall have costs of Ksh 95,000/= for the Appeal which shall be paid within 30 days, in default execution do issue.
DELIVERED, DATED AND SIGNED AT MOMBASA ON THIS 5TH DAY OF JULY, 2023. JUDGMENT DELIVERED THROUGH MICROSOFT TEAMS ONLINE PLATFORM.KIZITO MAGAREJUDGEIn the presence of:-No appearance for parties