Masosa Construction Limited v SBI International Holdings AG (Kenya) & 2 others [2020] eKLR Case Summary

Court
High Court of Kenya at Nairobi, Commercial & Tax Division
Category
Civil
Judge(s)
Justice Mary Kasango
Judgment Date
October 13, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the key details and implications of the Masosa Construction Limited v SBI International Holdings AG case in Kenya. Read the 2020 eKLR case summary for insights on construction law and dispute resolution.

Case Brief: Masosa Construction Limited v SBI International Holdings AG (Kenya) & 2 others [2020] eKLR

1. Case Information:
- Name of the Case: Masosa Construction Limited v. SBI International Holdings AG (Kenya) & Others
- Case Number: Civil Case No. 418 of 2015
- Court: High Court of Kenya at Nairobi, Commercial & Tax Division
- Date Delivered: October 13, 2020
- Category of Law: Civil
- Judge(s): Justice Mary Kasango
- Country: Kenya

2. Questions Presented:
The central legal issues presented in this case revolve around whether SBI International Holdings AG (Kenya) should be removed from the proceedings and whether the suit against SBI should be struck out for allegedly disclosing no reasonable cause of action and constituting an abuse of the court process.

3. Facts of the Case:
The dispute arises from the contractual relationships related to the Northern Corridor Transport Improvement Project (NCTIP). Masosa Construction Limited (the plaintiff) entered into a contractual relationship with SBI International Holdings AG (the 1st defendant), which was the main contractor for the NCTIP. The Kenya National Highways Authority (the 2nd defendant) and the National Bank of Kenya Limited (the 3rd defendant) are also involved. Masosa claims that it was invited to submit a tender for a project under NCTIP, which was accepted, leading to a contract with SBI as the main contractor. The plaintiff alleges delays in payments and breaches of contract by SBI and KeNHA.

4. Procedural History:
SBI filed a notice of motion application on January 14, 2020, seeking to be removed from the proceedings and for the suit against it to be struck out. The application was opposed by Masosa. The court was tasked with determining whether the claims against SBI disclosed a reasonable cause of action or constituted an abuse of process. The court referenced prior case law regarding the dismissal of claims for lack of reasonable cause of action.

5. Analysis:
- Rules: The court considered the provisions of Order 1 Rule 10 (2) and Order 2 Rule 15 (1) (d) of the Civil Procedure Rules, which allow for the dismissal of cases that do not disclose a reasonable cause of action or are an abuse of process.
- Case Law: The court referenced the case of D.T. Dobie & Company (Kenya) Limited v. Joseph Mbaria Muchina & another [1980] eKLR, which established that dismissing a suit for disclosing no reasonable cause of action should be exercised with caution and only in clear cases. The court also cited other cases emphasizing the need for a reasonable cause of action and the inherent jurisdiction of the court to dismiss actions that abuse court processes.
- Application: The court determined that Masosa's pleadings included specific claims against SBI, indicating a reasonable cause of action. The court concluded that SBI was a necessary party to the proceedings, as its involvement would facilitate a complete resolution of the issues and prevent multiple litigations.

6. Conclusion:
The High Court dismissed SBI's application to be removed from the proceedings, ruling that the case against it disclosed a reasonable cause of action. The court emphasized the necessity of SBI's participation in the case to ensure a comprehensive resolution of the disputes.

7. Dissent:
There were no dissenting opinions recorded in this case.

8. Summary:
The High Court of Kenya ruled in favor of Masosa Construction Limited, allowing the case against SBI International Holdings AG to proceed, thereby affirming that the claims disclosed a reasonable cause of action. This ruling underscores the importance of ensuring that all necessary parties are involved in litigation to achieve a complete resolution of contractual disputes, thereby preventing fragmented litigation processes.

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