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.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

Held that a three-day delay in filing the application for leave to defend was not inordinate and the preliminary objection was dismissed. The court found that the question of whether it has jurisdiction over the dispute in light of the mandatory mediation and arbitration clause in the agreement is a triable issue. Since the applicant raised at least one bona fide triable issue, unconditional leave to appear and defend was granted.

Outcome

Applicant granted unconditional leave to defend; matter to proceed to trial

Facts

The respondent brought a summary suit against the applicant company arising from an agency agreement allegedly signed by Ronald Kanyerezi, the applicant's former Chief Executive Officer. The applicant contended that Kanyerezi entered into the agreement without the knowledge or consent of all shareholders and other directors, and that the company only learned of the agreement after USD 450,000 was wired to its account. The applicant terminated Kanyerezi's employment and a police investigation was ongoing. The applicant filed this application for leave to appear and defend three days outside the ten-day statutory period. The applicant raised several defences including that the suit was premature because the respondent had not exhausted dispute resolution mechanisms, specifically mandatory mediation and arbitration clauses in the agreement. The respondent argued the arbitration clause was inoperative.

Issues

1. Whether the application for leave to appear and defend was filed out of time.
2. Whether the applicant should be granted unconditional leave to appear and defend the summary suit.
3. Whether the court has jurisdiction over the dispute in light of the arbitration clause in the agreement.

Orders

• Application allowed.
• 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 abide by the main cause.

Rules and key headnotes

Legislation cited (2)

• Civil Procedure Rules Order 36 Rule 4
• Civil Procedure Rules Order 36 Rule 3(2)

Cases cited (2)

• Kotecha v Mohammed [2002] 1 EA 112
• Postal Corporation of Kenya v Inamdar & 2 Others [2004] 1 KLR 359

The original judgment as reported. Read the original PDF before relying on any passage.