Bemuga Forwarders Limited v Noytech Logistics and Trading Sole Proprietorship (Civil Suit No. 0173 of 2025; Miscellaneous Application No. 0633 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The Court granted the applicant unconditional leave to appear and defend the summary suit. Although the application was filed three days late, the delay was not inordinate. The applicant raised a triable issue regarding the court's jurisdiction, specifically whether the dispute resolution mechanisms in the agreement (mediation and arbitration) had been exhausted. The Court held that even one bona fide triable issue entitles a defendant to leave to defend.
Outcome
Applicant granted unconditional leave to appear and defend; matter to proceed to full hearing on the merits
Facts
The Respondent filed a summary suit against the Applicant arising from an agency agreement. The Applicant's former Chief Executive Officer, Ronald Kanyerezi, signed the agreement allegedly without the knowledge or consent of other shareholders and directors. USD 450,000 was wired to the Applicant's account, which Kanyerezi claimed was received as agent for third parties and was disbursed to them. Kanyerezi's employment was subsequently terminated and a police investigation commenced. The Applicant applied for unconditional leave to appear and defend, arguing inter alia that the suit was premature because the dispute resolution mechanisms in the agreement had not been exhausted. The Respondent objected that the application was filed three days out of time.
Issues
- Whether the application for leave to appear and defend was filed out of time.
- Whether the applicant should be granted unconditional leave to appear and defend Civil Suit No. 0173 of 2025.
Orders
- Application granted.
- Applicant granted unconditional leave to appear and defend Civil Suit No. 0173 of 2025.
- Applicant to file Written Statement of Defence within 14 days from the date of this ruling.
- Costs to abide by the main cause.
- Preliminary objection dismissed.
Rules and key headnotes
Legislation cited (2)
Cases cited (2)
- Kotecha v Mohammed [2002] 1 EA 112
- Postal Corporation of Kenya v Inamdar & 2 Others [2004] 1 KLR 359
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.