King Investment Management Co Ltd v Rivatex East Africa Limited [2020] eKLR Case Summary

Court
High Court of Kenya at Eldoret
Category
Civil
Judge(s)
S.M. Githinji
Judgment Date
September 17, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the King Investment Management Co Ltd v Rivatex East Africa Limited [2020] eKLR case summary, highlighting key legal principles and implications for investment disputes in East Africa.

Case Brief: King Investment Management Co Ltd v Rivatex East Africa Limited [2020] eKLR

1. Case Information:
- Name of the Case: King Investment Management Co. Ltd v. Rivatex East Africa Limited
- Case Number: Civil Case No. 17 of 2020
- Court: High Court of Kenya at Eldoret
- Date Delivered: September 17, 2020
- Category of Law: Civil
- Judge(s): S.M. Githinji
- Country: Kenya

2. Questions Presented:
The central legal issue before the court was whether to vary or set aside the ex-parte injunction orders issued on June 23, 2020, which restrained the defendant from dealing with tender no. REAL/51/2019-2020 for the supply and delivery of Virgin Polyester and Viscose Staples fibres.

3. Facts of the Case:
The plaintiff, King Investment Management Co. Ltd, sought an injunction against the defendant, Rivatex East Africa Limited, which is a public entity involved in the production of masks for COVID-19. The plaintiff claimed that the defendant had obtained an ex-parte injunction without proper service of pleadings, thereby preventing the defendant from engaging in a tender process crucial for mask production. The defendant argued that the tender was essential for fulfilling government directives to supply masks for schools reopening. The plaintiff contended that the cancellation of a prior tender, REAL/38/2019-2020, was illegal and that the new tender was improperly advertised.

4. Procedural History:
The applicant filed a notice of motion on June 25, 2020, seeking to discharge the ex-parte orders issued on June 23, 2020. The plaintiff responded to this application, asserting that the defendant had violated the court's orders by extending the tender closing date. The matter was mentioned in court on several occasions, and both parties submitted their arguments virtually. The court ultimately had to determine the validity of the ex-parte injunction and whether it should be varied or maintained.

5. Analysis:
- Rules: The court relied on Order 40 Rule 7 of the Civil Procedure Rules, which allows for the discharge or variation of injunctions upon application by a dissatisfied party. The court emphasized that injunctions are binding on corporations and their employees.
- Case Law: The court referenced several cases, including *Giella v. Cassman Brown & Co. Ltd* and *Mrao v. First American Bank of Kenya Ltd*, which established the principles for granting injunctions: a prima facie case, potential for irreparable harm, and the balance of convenience.
- Application: The court found that the defendant had not presented sufficient grounds to set aside the injunction. The defendant's claims regarding technological challenges during the virtual hearing did not justify vacating the orders. The court also noted that the plaintiff’s claims of contempt were serious, as the defendant appeared to have extended the tender closing date despite the injunction.

6. Conclusion:
The court dismissed the application to set aside the injunction orders, ruling that the orders remained relevant to ensure justice until the case was fully heard. The court emphasized the importance of adhering to court orders to maintain the rule of law.

7. Dissent:
There were no dissenting opinions noted in this case, as the ruling was unanimous.

8. Summary:
The High Court of Kenya upheld the ex-parte injunction against Rivatex East Africa Limited, preventing it from proceeding with the tender for mask production. The decision reinforced the necessity of compliance with court orders and highlighted the importance of maintaining the status quo in legal disputes until a full hearing can take place. This case underscores the judicial system's commitment to upholding the rule of law and ensuring that parties are treated fairly in legal proceedings.

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