Republic v Chief Officer, Finance Migori County Government Ex Parte Lameck Onyango Mbani t/a Nyarkadera Enterprises [2019] KEHC 8957 (KLR) | Judicial Review | Esheria

Republic v Chief Officer, Finance Migori County Government Ex Parte Lameck Onyango Mbani t/a Nyarkadera Enterprises [2019] KEHC 8957 (KLR)

Full Case Text

REPUBLIC OF KENYA

IN THE HIGH COURT OF KENYA AT MIGORI

MISC. CIVIL APPLICATION NO. 10 OF 2018

REPUBLIC ...........................................................................APPLICANT

VERSUS

CHIEF OFFICER, FINANCE

MIGORI COUNTY GOVERNMENT ..........................RESPONDENT

AND

LAMECK ONYANGO MBANI

t/a NYARKADERA ENTERPRISES ....................Ex parte Applicant

JUDGMENT

1.  This matter is a second attempt by the Exparte Applicant to execute a decree against the County Government of Migori resulting from Migori Chief Magistrates Civil Suit No. 807 of 2016 (hereinafter referred to as ‘the suit’).

2.   Initially, the Exparte Applicant filed Judicial Review Cause No. 3 of 2017(hereinafter referred to as‘JR-3’) wherein vide a Notice of Motion dated 16/11/2017 and filed on 21/11/2017 the following orders were sought: -

1. THAT an order of mandamus now be issued and the same be directed to the County Secretary, Migori County and the Chief Officer Finance / County Treasurer, Migori County.

2. THAT the County Secretary, Migori County and the Chief Officer, Finance shall comply by paying to the applicant within 7 days the sum of Kshs. 2,847,532/= being the decretal sum, costs and accrued interest up to 30th June 2017 in respect of Principal Magistrate’s Court Migori Civil Suit No. 807 of 2016.

3. THAT the County Secretary, Migori County and the Chief Officer, Finance shall in addition pay to the applicant further interest on the said sum of Kshs. 2,846,532/= at the rate of 14% from the 1st July 2017 until payment in full.

4. THAT in default, notice to show cause do issue against the County Secretary, Migori County, and the Chief Officer, Finance, Migori County for them to show cause why they should not be cited for contempt of court.

5. THAT the cost of this application be provided for.

3. The application was vigorously opposed and vide a judgment rendered by this Court on 10/05/2018 the application was struck out for failure to comply with some procedural steps. It is those procedural lapses that the Exparte Applicant has attempted to demonstrate in this Cause that he remedied. In JR-3 this Court had the following to say in extenso: -

15. The other contention relates to the procedure to be followed in execution of money decrees against government. It is settled that before an order of mandamus is issued the elaborate procedure provided for under Section 21 of the Act must be strictly complied with. For ease of this discussion I hereby reproduce the said provision verbatim:

“21(1)  Where in any civil proceedings by or against the Government, or in proceedings in connection with any arbitration in which the  Government is a party, any order (including an order for costs) is made by any court in favour of any person against the government, or against a Government department, or against an officer of the Government as such, the proper officer of the court shall, on an application  in that    behalf made by or on behalf of that person at any time after the expiration of twenty – one days from the date of the order or, in case  the order provides for  the payment of costs and the costs required to be   taxed, at any time after the costs have been taxed, whichever is the later, issue to that person a certificate in the prescribed form containing    particulars of the order.

Provided that if the court so directs, a separate certificate shall be issued with respect to the costs (if any) ordered to be paid to the applicant.

(2)  A copy of any certificate issued under this section may be served   by the person in whose favour the order is made upon the Attorney- General.

(3)  If the order provides for the payment of any money by way of damages or otherwise, or of any costs, the certificate shall state the amount so payable, and the Accounting Officer for the Government department concerned shall, subject as hereinafter provided, pay to the person entitled or to his advocate the amount appearing by the  certificate to be due to him together with interest, if any, lawfully due  thereon.

Provided that the Court by which any such order as aforesaid is made or any court to which an appeal against the order lies may direct that, pending an appeal or otherwise, payment of the whole of any amount so payable, or any part thereof, shall be suspended, and if the certificate   has not been issued may order any such direction to be inserted therein.

(4)  Save as aforesaid, no execution or attachment or process in the  nature thereof shall be issued out of any such court for enforcing  payment by the Government of any such money or costs as aforesaid, and no person shall be individually liable under any order for the  payment by the Government, or any Government department, or any  officer of the Government as such, of any money or costs.

(5)  This section shall, with necessary modifications, apply to any civil  proceedings by or against a county government, or in any proceedings in connection with any arbitration in which a county government is a   party.

16. Expounding on the foregone my Lordships Visram and Ibrahim, JJ (as then were) discussed the rationale for the immunity against the normal execution proceedings against the Government and by extension the foregone elaborate procedure. This is what they stated in Kisya Investments Ltd vs. Attorney General (2005) 1KLR 74 thus: -

“Order 28, rules 2 (1) (a), (2) and (4) of the Civil Procedure Rules subject themselves to the  provisions of the Government Proceedings Act which include provisions  prohibiting  execution against or attachment in respect of the Government.   The said Rules themselves expressly preclude such actions.  Many a times such application may indeed not attain that goal due to the effect of the said laws.   On the question of abuse of the process of the court, the application of any written law cannot amount to an abuse of the process of the court however much its effect is harsh or even undesirable…. History and rationale of Government’s immunity from execution arises from the following: -  Firstly, there has been a policy in respect of  Parliamentary control over revenue and  this is threefold and is exercised in respect of (i). The raising of revenue – (by taxation or borrowing); (ii). Its expenditure; and (iii).  The audit of Public accounts.   The satisfaction of decrees or judgements is deemed to be an expenditure by Parliament and as a result of this must be justified in law and provided for in the Government’s expenditure.   It is for this reason that section 32 of the Government Proceedings Act provides that any expenditure incurred by or on behalf of the Government by reasons of this Act shall be defrayed out of the moneys provided by Parliament. Parliamentary control over expenditure is based upon the principle that all expenditure must rest upon legislative authority and no payment out of public funds is legal unless it is authorized by statute, and any unauthorized payment may be recovered. SEE HALSBURY’S LAW OF ENGALAND 4th EDN VOL. 11 PARA 970, 971 AND 1370.  As a result of the foregoing, which was borrowed from the Crown proceedings Act, 1974 (section 37) of England, this is a warning that any payment by Government must be covered by some appropriation. It is said that Parliament is very jealous of its control over the expenditure and this is as it should be.  No ministry or Department has any ready funds at all times to satisfy decrees or judgments.   While existence of claims and decrees may be known to the Ministries and Departments, they have to notify the Ministry of Finance and Treasury of the same so that payment is arranged for or provisions made in the Government expenditure.  SEE AUCKLAND HARBOUR BOARD VS. R (1924) AC 318, 326.   The second situation, which arises from the above, is that once a decree or judgment is obtained against the Government, it would require some reasonable time to have it forwarded to the ministry of Finance, Treasury, Comptroller and Auditor General etc for scrutiny and approvals for it to be paid from the Consolidated Fund.  The Ministries and Departments do not have their “own” funds to settle such decrees or payments and considering the nature of the Government structure, procedures, red tape and large number of claims, this could take a long time.   If execution and / or attachment against the Government were allowed, there is no doubt that the Government will not be able to pay immediately upon passing of decrees and judgments and will be inundated with executions and attachments of its assets day in, day out.   Its buildings will be attached and its plants and equipment will be attached, its furniture and office equipment will be attached, its vehicles, aircraft, ship and boats will be attached.   There will be no end to the list of likely assets to be attached and auctioned by the auctioneer’s hammer.  No Government can possibly survive such an onslaught.  The Government and therefore the state operations will  ground to a halt and paralyzed and soon the Government will not only be bankrupt but it’s Constitutional and Statutory duties will not be capable of performance and this will lead to chaos,  anarchy and the breakdown of the Rule of Law.  This is the rationale or the objective of the law  that prohibits execution against and attachment of the Government assets and property.”

17. The Court, Odunga, J. in Permanent Secretary Office of the President Ministry of Internal Security & Another ex parte Nassir Mwadhihi (2014) eKLR also had the following to say of the matter: -

“33. It therefore follows from the foregoing discourse that the rules   applicable to normal execution proceedings by way of committal to civil  jail are not necessarily applicable to enforcement of an order of the Court   arising from an order of mandamus by way of committal.   It must be remembered that an application for an order of mandamus seeking an order compelling the Government to satisfy a decree is a very   elaborate procedure.   Before the Court issues such an order, there must  be proof that the provisions of the Government Proceedings Act have been complied with respect to issuance of certificate of costs and   certificate of  order against the Government.  After the issuance of the aforesaid documents, just like in any application for mandamus, there    must be a demand for payment made by or on behalf of the decree     holder to the relevant department seeking payment since in an application for an order of mandamus, the law as a general rule requires  a demand by the applicant for action and refusal as a prerequisite to the   granting of an order, though there are exceptions to the rule.  See TheDistrict Commissioner Kiambu vs.  R and Others Ex Parte Ethan Njau   Civil Appeal No. 2 of 1960 [1960] EA 109; R vs The Brecknock AndAbergavenny Canal Co. 111 ER and R vs. The Bristol  and Exeter Railway Co 114 ER 859.

34. The said elaborate procedure is further meant to give adequate notice to the Government to make arrangement to satisfy the decree. The procedure, in my view is not meant to relieve the Government from meeting its statutory obligations to satisfy decrees and orders of the Court……..”

18.    I need not re-emphasize the need for strict compliance with Section 21 of the Act being the law of the land. In this matter I can gather from the record that a Decree and a Certificate of Costs in the suit was drawn and issued. I did not set my eyes on any Certificate of Order. There is a specific procedure on how the Certificate of Order required under the Act is obtained. The procedure is contained in Order 29 of the Civil Procedure Rules. Under Rule 3 thereof the application is made to the Deputy Registrar in the High Court or to the court in the subordinate court. The format of the Certificate of Order is provided in Appendix A Form No. 22 of the Civil Procedure Rules. Form No. 23 provides the format for a Certificate of Costs in the event it is separately issued.

19.   Once a party obtains the Certificate of Order and the Certificate of Costs, in the event the Certificate of Costs is obtained separately, together with the Decree, then such a party must satisfy the Court of service of those documents upon the party named in the Certificates. In this case there is neither evidence of issuance of the Certificates nor service thereof on the Respondents or their Advocates.

20.  I therefore have no difficulty in finding that the Applicant has not fully complied with the legal requirements for an order of mandamus to be availed. The application is premature and cannot stand.

4. The Exparte Applicant sought for the following orders vide a Notice of Motion dated 09/10/2018 and filed on 15/10/2018:

1. THAT an order of mandamus now be issued and the same be directed to the Chief Officer Finance / County Treasurer, Migori County.

2. THAT the Chief Officer, Finance shall comply by paying to the applicant within 7 days the sum of Kshs. 3,155, 505/28 being the decretal sum, costs and accrued interest up to 3rd July 2018 in respect of Principal Magistrate’s Court Migori Civil Suit No. 807 of 2016.

3. THAT the Chief Officer, Finance shall in addition pay to the applicant further interest on the said sum of Kshs. 3,155, 505/28 at the rate of 14% from the 3rd July 2018 until payment in full.

4. THAT in default, notice to show cause do issue against the Chief Officer, Finance, Migori County for them to show cause why they should not be cited for contempt of court.

5. THAT the cost of this application be provided for.

5. Through his Counsel the Exparte Applicant obtained a Certificate of Order Against the Government dated 23/05/2018 and a Certificate of Order for Costs against the Government evenly dated. There is uncontroverted evidence of service of the twin Certificates together with the Decree upon the Respondent herein through the letter annexed as Exhibit ‘LOO-III’.

6.   When the application came up for hearing the Respondent through its Counsel had not filed any response. Nevertheless, the hearing proceeded and Counsel for the Respondent was allowed to address the Court on matters of law. Counsel for the Respondent did not oppose prayers 1 and 2 of the application. On prayer 3, Counsel submitted that the decree sought to be executed did not provide for further interests hence the prayer ought to fail. It was also submitted that prayer 4 was premature.

7. In a rejoinder Counsel for the Exparte Applicant submitted that the decree was clear on further interest until payment of decretal sum and conceded that prayer 4 would ordinarily come much later.

8.  The concession by the Counsel for the Respondent on prayers 1 and 2 of the application was well reasoned and within the law. On further interests, the decree and the twin Certificates were clear that the principal sums shall attract interest until payment in full. The Exparte Applicant is hence entitled to further interests as prayed. I am in agreement with both Counsels that prayer 4 is premature.

9.  The upshot is that the Notice of Motion succeeds as follows: -

1. THAT an order of Mandamus be and is hereby issued directing the Chief Officer, Finance of the County Government of Migori to satisfy the decree, theCertificate of Order Against the Government dated 23/05/2018 and the Certificate of Order for Costs against the Government dated 23/05/2018 issued in Migori Chief Magistrate’s Court Migori Civil Suit No. 807 of 2016 within 30 days of this judgment.

2. THAT costs be borne by the Respondent.

DELIVERED, DATED and SIGNED at MIGORI this 28th day of March 2019.

A. C. MRIMA

JUDGE

Judgment delivered in open court and in the presence of: -

Mr. Ojalla, P. R.instructed by the firm of Messrs. P. R. Ojalla & Co. Advocates for the Applicant.

Mr. Marvin Oderoinstructed by the firm ofMessrs. Okong’o, Wandago & Company Advocates for the Respondents.

Evelyne Nyauke – Court Assistant