Ocean Foods Limited v Osotspa Company Limited & 2 others [2020] eKLR Case Summary

Court
High Court of Kenya at Nairobi, Commercial & Tax Division
Category
Civil
Judge(s)
W. A. Okwany
Judgment Date
October 08, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the case summary of Ocean Foods Limited v Osotspa Company Limited & 2 others [2020] eKLR, detailing key findings, legal implications, and outcomes for better understanding of commercial law.

Case Brief: Ocean Foods Limited v Osotspa Company Limited & 2 others [2020] eKLR

1. Case Information:
- Name of the Case: Ocean Foods Limited v. Osotspa Company Limited & Others
- Case Number: HCCC NO. 318 OF 2017
- Court: High Court of Kenya at Nairobi, Commercial and Tax Division
- Date Delivered: October 8, 2020
- Category of Law: Civil
- Judge(s): W. A. Okwany
- Country: Kenya

2. Questions Presented:
The central legal issues presented before the court were:
1. Whether the plaintiff should be granted leave to further amend the Amended Plaint and file the Defence to Counterclaim out of time.
2. Whether the Defence to Counterclaim filed by the plaintiff should be struck out or expunged from the court record due to being filed out of time.

3. Facts of the Case:
The plaintiff, Ocean Foods Limited, initiated the case against Osotspa Company Limited (1st defendant), Osotspa Europe Limited (2nd defendant), and Extropica Foods Limited (3rd defendant). The plaintiff sought declarations regarding an acknowledgment of debt and a payment plan established in January 2016, claiming it was made under mutual mistake and breached previous agreements. The defendants counterclaimed, alleging that the plaintiff acknowledged a debt of EUR 1,592,000 and failed to make payments. The plaintiff's Director, Mr. Ali Mohammed Sahal, supported the application for amendments, arguing that they were necessary to respond to the defendants' counterclaims and correct typographical errors.

4. Procedural History:
The case progressed through the court system with two significant applications:
1. Application dated April 12, 2019: The plaintiff sought leave to further amend their Amended Plaint and file the Defence to Counterclaim out of time. The application was supported by an affidavit from the plaintiff’s director and outlined the need for amendments to address the defendants' allegations and correct errors.
2. Application dated July 8, 2019: The defendants sought to strike out the plaintiff's Defence to Counterclaim, arguing it was filed out of time without the court's leave. The plaintiff opposed this application, asserting that it was a response to the first application.

The court considered both applications through written submissions from the parties involved.

5. Analysis:
- Rules: The court examined Order 8 Rule 3 of the Civil Procedure Rules concerning amendments of pleadings, allowing amendments at any stage of the proceedings as long as they do not prejudice the opposing party. The court also referenced Section 3A of the Civil Procedure Act, which grants inherent powers to the court to ensure justice.

- Case Law: The court cited the case of *Kassam v. Bank of Baroda (Kenya) Ltd* [2002] eKLR, emphasizing the need for a party to explain delays in filing amendments. It also referenced *Central Kenya Ltd v. Trust Bank Ltd & 5 Others*, which highlighted that amendments should be allowed unless they cause prejudice beyond monetary compensation. The court noted the position taken in *Eastern Bakery v. Castelino* [1958] EA 461, stating that amendments before a hearing should be freely allowed if they do not cause injustice.

- Application: The court found that the proposed amendments were necessary for a just determination of the case. Although there was a significant delay in filing the Defence to Counterclaim, the court determined that the defendants did not demonstrate any prejudice resulting from the amendments. Thus, the court allowed the first application while granting costs to the defendants due to the plaintiff's delay.

6. Conclusion:
The court ruled in favor of the plaintiff, allowing the application dated April 12, 2019, for further amendments to the Amended Plaint and the filing of the Defence to Counterclaim. The second application to strike out the Defence was rendered moot as the court had already permitted the filing.

7. Dissent:
There were no dissenting opinions noted in the ruling.

8. Summary:
The High Court of Kenya allowed Ocean Foods Limited to amend its pleadings and file a Defence to Counterclaim despite delays. The decision underscores the court's inclination to prioritize justice and the resolution of disputes over procedural technicalities, provided that no significant prejudice is caused to the opposing party. The ruling highlights the importance of allowing amendments to pleadings to ensure a fair trial and just outcomes in civil litigation.

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