Securex Limited v Prime Cartons Limited [2016] KEHC 4614 (KLR) | Contract Enforcement | Esheria

Securex Limited v Prime Cartons Limited [2016] KEHC 4614 (KLR)

Full Case Text

REPUBLIC OF KENYA

IN THE HIGH COURT OF KENYA

AT NAIROBI

CIVIL APPEAL CASE NO.  136 OF 2011

SECUREX LIMITED................................................APPELLANT

VERSUS

PRIME CARTONS LIMITED..............................RESPONDENT

JUDGMENT

1. This is  an appeal arising from the judgment  and decree of the Senior Resident  Magistrate  Honourable P.Nditika (Mr) delivered  on 23rd February  2011 in CMCC No. 3411 of  2008, Milimani  Commercial Courts, Nairobi. The plaintiff in the lower court was Securex (K) Ltd.  It sued the defendant Prime Cartons  Ltd  seeking  for recovery   of a sum of kshs  582,257. 80 plus interest  being  alleged  dues  for security services  rendered  to the defendant  by the plaintiff in  respect  of three  contracts   signed  between the parties for  provision of security services at Falcon Road  and Spring Valley Premises.

2. The defendant/now respondent filed a statement of defence admitting that it received services from the plaintiff/appellant   but denied owing the sums claimed in the plaint.  The respondent contended that it had settled all sums due prior to the institution of the suit in the lower court.  The respondent further counterclaimed for the goods stolen from its Falcon Road Premises during the appellant’s watch but did not prosecute the counterclaim.

3. The suit  was heard interpartes  and in his  judgment  delivered  on     23rd February 2011, the trial magistrate found that the plaintiff/appellant  had not proved  its case against the  respondent/defendant on a balance of probabilities  and dismissed the  suit with costs.  It is that dismissal order that provoked this appeal, challenging the decision of the trial magistrate.

4. The Memorandum of Appeal dated 22nd March 2011 raises ten grounds of appeal namely:-

1. The learned magistrate misapprehended and misunderstood the extent to which a party   is bound by its pleadings.

2. The learned magistrate erred by failing to consider the testimony of the witness regarding the security services provided at Mombasa Road.

3. The learned magistrate  erred by failing  to consider  the evidence  adduced  such as  invoices, receipts  and the ledger  summary  in support  of the security  services  provided at  Mombasa Road.

4. The learned magistrate erred by failing to take into account that the respondent expressly admitted in its pleadings that it received security services from the appellant.

5. The learned magistrate erred by acting on assumptions and or experience instead of the evidence adduced before him.

6. The learned magistrate  made a  false  assumption  that the  respondent  paid the appellant Kshs  197,304. 40 yet the respondent  neither  adduced  oral or documentary  evidence in support   nor was the alleged  payment pleaded.

7. The learned magistrate  made a  false assumption that kshs  582,257. 80 was only for security services  provided  at Mombasa Road thereby failing to  take into account the other security  services provided  at Falcon Road  and Spring Valley Lane.

8. The learned magistrate erred in holding that the respondent did not owe the appellant any money.

9. The learned magistrate erred in holding   that the appellant had not proved its claim on a balance of probabilities.

10. The learned magistrate failed to exercise its discretion fairly and judiciously.

5. The appellant therefore prayed that the appeal be allowed with costs. In support  of this appeal, the  appellant’s  counsel filed submissions dated 23rd  April  2015  wherein  they abandoned  grounds number  1,2,3, and  6  of the Memorandum  of Appeal.

6. On grounds 4 and  5, the appellant  submitted that  the trial magistrate acted  on  wrong principles  of law in that: he failed to take into  account the  respondent’s   express admission of the claim in  its pleadings that it  received security services   from the appellant  as per paragraphs 2 and  3  of its statement  of defence;  That having admitted receipt of the security services, by implication it conceded that the appellant was entitled to charge for services rendered.  They relied  on Abok James  Odera t/a  Odera and  Associates  V John Patrick  Machira  t/a  Machira  & Company Advocate  [2013] e KLR .  It  was further contended  by the appellant that the trial  magistrate  never acknowledged  the admission  by the respondent  hence  he failed  to address  all issues  arising in the suit.

7. Secondly, that the invoices produced by the appellant proved that the respondent had not settled the account.  That the respondent never adduced evidence that it paid   for the services rendered as pleaded in its defence.  Reliance was placed on Magundo General Stores t/a Pepco Distributors where it   was held that mere denial in a debt recovery matter is not sufficient; there must be some reason why the defendant did not owe money. In this case it was contended that no reasons were advanced why the respondent did not owe the money; Third , that having found that the appellant  could not  claim in respect  of services  rendered  to the  respondent  at their  premises  along Mombasa  Road, the trial  court  should have  proceeded  to total up all the  other chargeable   items not relating to  Mombasa Road   and award the  value to the appellant which he  did not,  and neither  did he give  any reasons  for failing to do so, yet the claim was  clearly   discernible   from  the voices.

8. On  ground 7, it  was submitted that the trial magistrate  made   false assumptions that the sum of  Kshs  582,257. 80 demanded  by the appellant was only for security services  rendered  at Mombasa Road  and failed to take into account  that  other services  were provided at Falcon  Road and Spring Valley  Lane, yet  the appellant  had averred  that it rendered  services to the respondent at Falcon Road and  Spring Valley Lane respectively.  It  was  contended  that the trial magistrate failed to  scrutinize   the evidence  adduced before  him and address  his mind on  the invoices produced  by the appellant  and that had he done  so he  would have  found that  some of the  services rendered  were in respect  of Falcon Road and Spring  Valley Lane, and that  he  therefore  misapprehended  the evidence  before him.

9. On ground 8, it  was submitted that the trial  magistrate  erred  in finding that shs  197,300. 40  had not  been discounted  in the  claim yet  there   was  no denial  by the respondent  and  that this   was what the appellant  pleaded and not  what the  respondent said   they had paid.  That  it  was an  error  of fact  to state  that nothing  remained due to the  appellant after payment of shs  197,300. 40 .

10. On grounds 9 and 10, it was submitted that the court exercised its jurisdiction unfairly and injudiciously.  Reliance   was placed on Morabo Ltd V Sino hydro Corporation Limited [2014] e KRL, Storm Chemicals Industries Ltd V Moses Maina & Others [2009] e KLR.

11. The appellant reiterated that the trial magistrate misapprehended facts of the appellant’s case and that he acted on wrong principles in dismissing the appellant’s suit with costs.  The appellant prayed that   this appeal be allowed with costs.

12. In opposition to the appeal, the respondent filed its submissions on    19th October 2015.  The respondent contended  that the three  contracts  dated  8th February 2006, 28th March 2006  and 13th February  2006  as pleaded in pages  1-17 of  the supplementary record of  appeal  formed the basis of the first  two contracts  which were for  Radio Alarm Services  at Falcon  Road  Spring Valley  premises  while the contract  dated 13th March 2006   was for Guarding  Services at Falcon Road  premises.

13. According to the respondent, there was no pleading touching on security services for Mombasa Road premises yet exhibits 1(a) (b) and (c) are invoices for shs 309,297. 00 relating to Mombasa Road.  That a judgment in favour of the appellant on unpleaded facts would have robbed the respondent of an opportunity to defend the claim.  On the principle that a party is bound by its pleadings, reliance   was placed on the Petition No. 3/2013 where it was held that:

“It is trite law that each party is bound to its own pleadings and that the pleadings do accord with evidence.”

14. Further, that it is pleadings which in turn limits the issues upon which a trial court may pronounce.  On the contention that the trial magistrate should have   entered   judgment in favour of the appellant for the amount outside the Mombasa Road claim, it was resisted on the grounds that:

1. No evidence  was led at the  trial  to show that the respondent  owed  the sums  claimed and that PW1  was unable to explain how much  of the claimed Kshs 582,257. 80 was for  Falcon Road  and Spring Valley accounts.

2. The plaintiff admitted that   Kshs 197,304. 40 had been received from the defendant/respondent prior to the filing of the suit.  That the pleadings and statements of accounts were at variance.

3. That the accounts ledger submitted  was a combined  one for all  transactions  in respect of the  respondent’s accounts  for  Mombasa Road, Falcon Road and  Spring Valley.  It  was therefore  contended that it was upon the  appellants and not the  court  to distinguish the entries on the statement  of account  which  was  not done .

15. Further, that it  was upon the  appellant to distinguish which  invoices  were settled   by what  payments ; which invoices  related to the pleaded contracts; and  which invoices were for Mombasa Road; which invoices  remained  unpaid  and for what premises;  and not merely  place material  before the court which  did  not  amount to  proving a case.

16. It  was submitted that in view  of the foregoing, the appellant’s  evidence did not  reach the  threshold required and that the  appellant  failed to discharge the  burden  of proof as espoused  in Section 107  of the Evidence  Act  to prove its claim hence  the appeal  herein should be dismissed with  costs  to the respondent.

17. This being a first appeal, this court is obliged to exercise its powers under Section 78 of the Civil Procedure Act and in doing so, do any of the following acts the following:

a. Determine a case finally;

b. Remand a case;

c. Frame issues and refer them for trial.

d. Take  additional evidence  or require  the evidence  to be taken

e. Order a new trial.

18. In exercising  the above  power, an appellate court is  cautioned  not to  interfere with the  finding  of fact by a trial  court unless  it is  based  on no evidence, or on a misapprehension  of the evidence, or  the trial court is shown to  demonstrably to have acted  on  wrong principles in reaching  his  conclusion.  See Mkube V Nyamuro [1983] KLR.

19. The provisions of Section 78 of the  Civil Procedure  Act have  been variously interpreted  by courts  based on  the decision  in Selle V Associated Motor  Boat Company Ltd [1968] EA  123  where the Court of Appeal  was clear  that the  court on appeal is obliged  to examine and evaluate  the evidence  of the trial court and come to its  own independent  findings  and conclusions but in doing so, give an allowance to the fact that it  neither heard  nor saw the witnesses  testify.

20. Applying  the above principles, and  reexamining  the evidence in the lower court, the appellant testified and  called  2  witnesses. PW1 Baryl Asavedo, an accountant with the appellant  testified  on oath that he had worked  with the appellant  for  12 years.  That the respondent was their client.  That the appellant provided the respondent with security guards and radio alarm backup.  He produced three agreements dated 13th February 2006, 8th February 2006 and 28th March 2006.  He testified that the services were provided and the defendant/respondent was paying.  That they started with Falcon, and Mombasa Road.  He sought for shs 582,257. 80 for 2007 to February 2008.  He also produced invoices and statements, and demand notice.  He was aware of allegations of theft, which he   stated was insubstantial.

21. In cross examination by Mr Okello advocate for the respondent, PW1 stated that the services were to be offered to Falcon and Spring Valley.  He also stated that Mombasa Road was not included in the 3 agreements although he had an invoice for Mombasa Road.  He confirmed that the plaint stated Spring Valley.  He stated  that the amount stated in the invoices  is not  all that   was  contracted  for and  that what was  owed  as at  February  is what  was claimed.

22. In re-examination, PW1 stated that they relied on good faith that the defendant would pay.  Further, that there were credit notes that the defendants paid.  He denied receiving a letter from the defendant that the appellants had overcharged the respondents.

23. The  appellant also called  PW2 John  Ogutu  who testified  that   he  was  an Operations Manager  with  the appellant  security Company.  He stated that he was familiar with the subject contracts.  That in early 2008 they received a report concerning theft of machine parts at the respondent’s go down.  They visited the scene and police also visited the scene but that nobody was charged.  He produced   incident report presented to the police as well as a follow up report.  He stated that there was no evidence of breakage albeit it was alleged that the machine parts lost were worth 4. 5 million.  He stated that their guards still worked for the appellant.

24. In cross examination, PW2 stated that he   was not aware of any other case.  He also stated that they provided security services along Mombasa Road go Downs.  He also  stated that  he did not  visit  the scene personally and that Corporal  Mutisya  received the  report  and  arranged for the  guards to go to  police and record a statement.  He stated that nobody was charged and that there were no particulars indicated in the set off or counter claim.

25. The defendants closed their case without calling any witness.

26. In a brief  1 ½ page  judgment, the learned  trial magistrate framed   only  one sole  issue for  determination  and that  is whether  there  was  breach  of any contract  and therefore  whether  there  was  money owing by the respondent to the appellant herein.  The trial magistrate found that the appellant had not discharged the burden of proving its case against the respondent on a balance of probabilities for reasons that its pleadings did not mention Mombasa Road.  Further, that the  invoices  raised  touched on Mombasa  Road which was  devoid of an amended  plaint; and that  the alleged  admission  by the appellant  did not cure  the fatal defect.  Relying on the  Magundo General Stores V Pepco  Distributors, the trial  court found  that there must be  some reason  why the defendant  did not  owe the  money:- either  there  was no contract  or if it  was carried  out, it could be that  payment had been made and  could be  proved; and that  it  was not  sufficient  to deny liability  without some   reason given.  The trial magistrate found that in the absence of a contract for Mombasa Road, the claim on Mombasa Road must fail.  He also stated that  the  statement  showed  that the appellant  did not  credit kshs 197,300. 80 which had been  paid by the  respondent and that if that credit  was given, nothing   was  owing. Further, that  the fact  that  the respondent  did not  call any  evidence  to controvert  the appellant’s  case  did not  mean that  the appellant’s  case  had to succeed.  He therefore dismissed the appellant’s   suit against the respondent with costs.  It is that decision that provoked this appeal.

27. I have  carefully and consciously considered  the appeal  herein, in line  with the pleadings, the evidence  adduced  in the lower court by the appellant, both  oral and documentary, the submissions  by both  parties  advocates  on record  and the authorities  relied on.  In  my view, considering  the grounds of  appeal  as submitted  by the appellant’s  counsel, the main  issues for   determination  are:

1. Whether there   was an admission of the appellant’s claim by the respondents.

2. Whether  the trial magistrate acted  on wrong principles  and therefore misapprehended  the law and  facts  vis avis  the evidence  adduced by the appellant.

3. Whether   the trial magistrate failed to take into account the fact that other security services were provided at Falcon and Spring Valley Lane.

4. Whether the trial magistrate erred in finding that   the appellant had not given credit for Kshs 197,300. 80 and that no money was outstanding.

5. Whether the trial magistrate erred in the manner in which he   exercised his discretion.

6. What   orders should  this court make

7. Who should bear the costs of the appeal.

28. On the first issue of whether there was an admission of the appellant’s  claim, this court  must  relook at the pleadings  by both parties. In paragraphs  3,4, and  5  of the plaint, the  appellant  pleaded as  follows:-

“3.  By  agreements in  writing  dated  8th February  2006, 28th March  2006  and 13th February  2006, the plaintiff  agreed to provide the defendant   with a day and night security services  together with installation  of  a radio alarm transmitter at the defendant’s premises  located  at Falcon Road  and Spring Valley  Lane  respectively.  In turn, the defendant   agreed  to pay the plaintiff the charges  set out in the various  invoices   raised by the  plaintiff, which charges  as agreed, were based on the  plaintiff  operating cost at the time  of raising  the invoices  to the defendant.

4.  Pursuant  to the above  mentioned  agreements  the plaintiff   duly deployed  its security  guards  to the defendant’s  premises at Falcon Road  and installed  the radio alarm transmitter  at the defendant’s premises at Spring  Valley Lane.

5.  As agreed, the plaintiff from time to time sent to the defendant invoices for the services   rendered.  As at  1st March  2008, the plaintiff had raised invoices amounting  to kshs  779,562. 20 out of  which the defendant  paid kshs  197,304. 40.

Consequently there is now due outstanding and payable  by the defendant to the plaintiff, a sum of  kshs  582,257. 80 and the plaintiff claims  the said sum of kshs 582. 257. 80. ”

29. In the  defendant’s  statement of  defence and counterclaim  filed on  17th September  2008, the defendant   stated  as follows:

“1. not material

2.   The defendant  admits that  it has guarding  and alarm services from the  plaintiff  but denied  owing  the sum of kshs  582,257. 80.  The defendant particularly denies being  indebted to the  plaintiff  in the sum of   the kshs  582,257. 80 or  any other   sums and puts  the plaintiff  to strict  proof  thereof.

3.   While  the defendant  admits using the security  services  from the plaintiff it denies that it  owes the sum of kshs 582,257. 80 or any  other sum  and also denies that the  services were  provided  unto 1st March 2008 as alleged in paragraph 3 of the plaint  and puts the  plaintiff to strict  proof thereof.

4.   In the alternative and without prejudice to the foregoing the defendant  avers that it paid  all sums  rightfully owing  to the plaintiff prior to the filing of thus  suit.”

30. According to the appellant, the trial  magistrate  erred  in law  by failing  to take  into  account that the respondent  expressly admitted  in its defence  that it  had received security  services  from the appellant  and that  having admitted  using the appellant’s  services,  the respondent  by implication  conceded  that the appellant   was  entitled  to charge  for services rendered.

31. My careful perusal of the plaint and relevant   parts relating to “admission” by the defendant indeed   show that there was an admission  that the  appellant   did provide security services to the  respondent.  The plaintiff also produced three contracts the subject  of  its  claim  as pleaded in paragraph  3 of the plaint.  The said contracts undoubtedly concerned  provision of the  security services at Falcon Road  and Spring Valley Lane   and NOTMombasa  Road.  The contracts  were  very specific  on the premises  where security  guards  or installation of  radio  alarm  was to be situate   and Mombasa Road  was not one of them.  It follows, therefore, that albeit  there  was an express admission  by the  respondent  that the  plaintiff/appellant  provided it  with security services, such  admission   could  only be  with regard  to provision  of such services  at the contracted  premises which were expressly pleaded in the plaint namely Falcon  Road  and Spring Valley Lane  as particularized in paragraph 3 of the  plaint  and as per the   three contracts  produced as exhibits and not an admission of  security  services  at Mombasa  Road  or at any other place  which  was not pleaded.

32. In the instant  case, therefore, albeit  the trial magistrate  did not  acknowledge such admission, failure to make  such an  acknowledgment of admission cannot  on its own  form  a basis  of a  ground of appeal  as there was  indeed  no issue  regarding  provision of security services at the pleaded premises.  Further, I find  that there  was no denial or issue  that with provision of security services, the  appellant  was entitled  to charge  a fee since the fees  chargeable  was as per  the 3 contracts  produced in evidence.

33. Accordingly, I find  the grounds  4 and  5  of appeal as argued by the  appellant  regarding  admission of the  claim by the respondent wanting  in merit  and I reject  it for  the reasons given above.

34. Having found that  there  was  no dispute  that the appellant provided  the respondent with security services s as pleaded  and  as per the three contracts  produced in evidence, the next  question would be whether  the appellant  discharged  the evidential burden of  proving that   having  rendered  security  services/installed  radio  alarms  at the  respondents  premises at Falcon  Road,  and Spring Valley Lane, it was owed the  sums  claimed in the plaint  and  as per the  3 contracts  produced  in evidence?

35. In support of its claim, the appellant  produced  3 contracts  EX1(A) is dated  8th February  2006   for installation  of a radio alarm system agreement  at plot 209/9531/2 Falcon  Nairobi. Payment   was to be  in accordance with clause  4 of the agreement  which provides:

a. Rental charges   on demand  and in advance  -based on the company’s  operating  costs at the  time of  quotation to the client,

b. Reasonable  extra charge  for duties  performed  on a public  holiday

c. Additional charges  where in its  opinion the appellant  is prevented  from performing   its services by an  act or  omission on the part of the client/respondent.

d. Installation  fee in signing  of the agreement

e. Annual communication commission of Kenya   radio  license fee.

36. It is worth  noting that  no specific  amount  of money due on signing of that agreement  was provided. The same  applied to the agreement  dated  28th March  2006 produced  as P EX  1(B)  for installation  of radio alarm system at Spring   Valley Lane  off Spring Valley  Road, on  plot L.R. 7158/272.  The invoices  issued by  the appellant    for security alarm system/back up services are  the ones dated:

a. 1st February  2008 vide invoice  No.  INA 79433 for kshs  5742. 00 inclusive  of  tax

b. 1st February  2008 invoice  No.  INA 79432  for shs  6206. 00 inclusive of tax.

c. 1st February 2008 invoice  No.  INA 79431 for shs  6902. 00 inclusive of tax

d. 1st January 2008 invoice INA 77735  for  shs  5742. 00 inclusive  of tax.

e. 1st January  2008 INA  77734 for shs  6206 inclusive of tax

f. 1st January 2008 invoice INA 77733 for  shs  6902. 00 inclusive tax

g. 1st January 2008 invoice INA  003053 for  shs  1,450. 00 being  annual CCK license fee.

h. 1st January 2008 INA  003052  for shs  1450. 00 annual  CCK license  fee.

i. 1st October  2007 INA 73098 for  5742 Ns

j. 1st October  2007 INA  73097 for  6206 Ns

k. 1st October  INA  73096 for  6902 Ns

l. 1st December  2007 INA 76084 for 6902 Ns

m. 1st December  2007 INA  76085  for  6206 Ns

n. 1st December  2007 INA  76086 for  5742  Ns

o. 1st November  2007 INA 74580 for shs  6902 Ns

p. 1st November  2007 INA  74581 for shs  6206 Ns

q. 1st November  2007 INA  74582 for shs  5742 Ns

r. All the above  invoices  related  to either  automatic  or manual  radio  alarm backup services.

37. The 3rd contract relating  to guards  services is  the one  dated 13th February  2006 – P Ex 1(c). Payment would be as per ”the  schedule” on demand.  The  invoices  relating to  provision of  guards services  are for both Falcon Road  Premises  and Mombasa  Road Premises  as  follows:

a. 1st  February   2008  ING 17983  for

i. One day security  guards  for the month-19,350

ii. One dog with handler  for the month  at Mombasa  Road Premises  32,850

Total  60,552. 00

b. 1st February 2008 ING 18258

i. One day security guard  for the month

ii. One  month  right security guard – she  19350 for the month  at Falcon  Road  shs  19,350

Total 44,892. 00

c. 1st January  2008 ING 17780

i. One  day security guard   19,350

ii. One night  security for the month  at Falcon  Road  19. 350

iii. Four extra  public  holidays  in December  2007 – 17th, 27th , 28th and  31st -5600

Tax  7088

Total  51,388. 00

d. 1st January 2008  ING 17510

i. One day security guard  for the month  19. 350

ii. One dog with  handler for the  month @ Mombasa Road Premises  32,850

iii. 4 extra  public holidays     5600

Tax  9248. 00

Total  67,048. 00

e. 1st December  2007 ING  17020

i. One day security  guard for  the month  19,350

ii. One dog  with handler  for month at Mombasa road  32,850

Tax   8352

Total  60 552. 00

f. 1st February 2007  ING 17292

i. One  day security for the month  19350

ii. One night  security  guard  for the month  at Falcon road  19,350

Tax   6192

Total 44,892. 00

g. 1st November  2007 ING  16876

i. One day security  guard for the month  19, 350. 00

ii. One night  security  guard  for  the month  at Falcon road   19,350. 00

Tax  6192. 00

Total 44892

h. 1st November  2007 ING  16184

i. One night security guard for  the month  19,350

ii. One day  security  for the month  19,350

iii. One dog  with  handler  for the month  at Mombasa  road premises 32850

Tax  11448

Total  82,998. 00

i. 1st November  2007 ING  16602

i. One day  security  guard  for the month  19,350

ii. One day with handler   for the month  at Mombasa Road premises 32850

Tax  8352

Total 60552

j. 26th February  2008 CNG 01220

i. One day security guard  withdrawn  from 22nd February 2008  5160

ii. One night  security guard  withdrawn  from 22nd February  2008  from Falcon  Road Premises   5160

Tax  1651. 20

Total  11,971. 20

k. 26th February CNG 01219

i. One  day security guard  withdrawn   from 22nd February 2008  5160

ii. One dog  with handler  withdrawn from 22nd February  2008  from Mombasa  Road premises   8760

Total 2227. 20

Total 16,147. 20

38. The statements  of account showing  the customer’s ledger and produced  as P Ex 3 show that  as at  31st December  2007  the amount  due   and owing   was Kshs  582,257. 80.

39. It is the above  sums of  money which  the appellant  demanded  from the  respondents  by their  advocates letter  dated  10th March 2008.  In the defence  filed on  17th September  2008   the defendant  admitted that  it  had guarding   and alarm services  from the plaintiff but  denied owing the sum of  shs  582,257. 80.  It also denied  owing the said sums  as at  1st March 2008 and in the alternative  pleaded  that  it paid all sums  rightfully owing   to the plaintiff  prior  to the filing of the suit.  The defendant/respondent  also  counterclaimed  for  the loss of or full value  of the stolen  goods but whose particulars were never provided  in the pleadings.  Neither did it give any evidence  to controvert  the plaintiff/appellant’s claim  and witness  testimonies.

40. In dismissing  the appellant’s suit,  the trial magistrate  found that  there  was no contract  relating  to security  services  at Mombasa  Road Premises and that  the  appellant  did not give  credit to shs  197,300. 40  which had  been  paid by the  respondent  and that if that credit  was  given, nothing  was owing.

41. Whereas  it is true that there was no contract  relating  to provision  of  security  services  for Mombasa  Road  Premises  and neither  was there  any pleading  specifically  mentioning  such services, I am in  agreement   with the appellant’s   counsel’s  submissions that  indeed, there  was a contract  for provision of such services  at Falcon Road   and Spring Valley Premises  which  were specifically pleaded  in paragraph 3 of the plaint.  It was therefore, in my view   clearly an error  on the part of the trial magistrate  to dismiss the plaintiff/appellant’s   suit on the basis that  there  was no contract  for Mombasa  Road, without examining  the  contract and invoices  for the services rendered at the Falcon  Road and  Spring Valley Lane Premises  which disclosed the services rendered  and invoices  and statements  prepared for the amounts  due.

42. Further,  I find that  the finding  that the  sum of shs  197,300. 40 was not  credited  was in error  as there  was no such evidence  before him to the effect that such sums of money was ever paid and or received by the appellant from the respondent.

43. I have also meticulously examined  the invoices  produced, and the statements  of account for the services rendered before the trial court. In my humble view, if the trial magistrate had calculated  the total amount  due as per  the invoices produced and credited  the sums received  as per the statements  and deducted   the amount due  on the Mombasa  Road Premises, he could  have come   to a  definite  figure which he could have found due to the appellant.

44. Out of the  above sums  of money, the statements of  accounts show that  some invoices   were settled   as per the  credit  entries  shown on the  statements whereas   some invoices  are not  reflected in the debit  entries albeit  there  is no evidence that they were settled  such as the invoice  ING 17780 for  shs  51,3380.

45. Nonetheless, looking at the manner  in  which the appellant  prosecuted  it’s  case, I agree with the respondent’s   counsel’s  submissions that  documents  and figures  were thrown at the  trial magistrate.  No attempt was made to explain the details   in the invoices compared with the statements of accounts and how they balanced out.  Had that   been done, then the trial magistrate’s duty would have easy, that of establishing whether the sum claimed was not only due but whether it was owing by the respondent to the appellant.

46. From the contract documents, invoices and statements of accounts produced, there is no doubt that there is a possibility that some monies were owed. However, as the trial magistrate concluded that  there  was no contract  for Mombasa Road  and proceeded to dismiss  the suit for want of   proof without examining  the invoices  and statements  of accounts  which revealed  that there  were  monies  owing  respecting  the contracted   premises, I find  that he   was in  error  which error, in my view, led to mistrial  and misjustice.

47. For that reason alone, I would  allow this  appeal and set  aside the  order  of the  trial  court dismissing the  appellant’s  suit and substitute it  with an  order that   the  suit shall  be remitted  back to the Chief  Magistrate’s Court at Milimani  for a new  trial. The new trial shall be heard before another magistrate   of competent jurisdiction since this court has learnt that the trial magistrate Mr P. Nditika has since passed on.

48. And owing to a mistrial, I order that each party bear their own costs of this appeal and of the dismissed suit.

Dated, signed and delivered in open court at Nairobi this 13th day of April 2016.

R.E. ABURILI

JUDGE

In the presence of :

Miss Mwasau h/b for Mr Nyaburi for the appellant

N/A for Respondent(Angelo-clerk from the respondent’s counsel’s office states that she will give the pronouncement to Ms Okulo as there was no other advocate in court to hold their brief).

Henry: Court Assistant