Samruddha Resources (Kenya) Ltd v County Government of Taita Taveta [2020] eKLR Case Summary

Court
High Court of Kenya at Mombasa
Category
Civil
Judge(s)
E. K. Ogola
Judgment Date
October 06, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the case summary of Samruddha Resources (Kenya) Ltd v County Government of Taita Taveta [2020] eKLR, highlighting key legal principles and implications.

Case Brief: Samruddha Resources (Kenya) Ltd v County Government of Taita Taveta [2020] eKLR

1. Case Information:
- Name of the Case: Samruddha Resources (Kenya) Ltd v. The County Government of Taita Taveta
- Case Number: Constitutional Petition No. 29 of 2019
- Court: High Court of Kenya at Mombasa
- Date Delivered: October 6, 2020
- Category of Law: Civil
- Judge(s): E. K. Ogola
- Country: Kenya

2. Questions Presented:
The court must resolve whether it has jurisdiction to grant an injunction pending appeal and whether the applicant has established the necessary prerequisites for such an injunction.

3. Facts of the Case:
The petitioner, Samruddha Resources (Kenya) Ltd, challenged the Taita Taveta County Finance Act, 2018, specifically contesting a charge of Kshs. 19,883,301.00 claimed by the County Government for "transportation cess." The petitioner had previously succeeded in nullifying a mineral tax charge but was concerned that the court erred in allowing a lesser charge for transportation cess, which they argued was not authorized by the Finance Act. The respondent, Taita Taveta County, claimed the petitioner had failed to comply with previous court orders regarding cess payments, and they sought to continue collection efforts. The petitioner argued that the COVID-19 pandemic had been used to unlawfully enforce these collections, jeopardizing their operations and employment of workers.

4. Procedural History:
The petitioner filed an application on June 4, 2020, seeking an urgent injunction to prevent the respondent from collecting the disputed cess amount pending appeal. The respondent opposed the application, arguing it was filed too late and that the court lacked jurisdiction to issue such an order. The case progressed through various submissions, with the petitioner citing previous case law to support their position, while the respondent maintained that the petitioner had no valid grounds for appeal.

5. Analysis:
- Rules: The court considered the Constitution of Kenya (Protection of Rights and Fundamental Freedoms) Practice and Procedure Rules, 2013, particularly focusing on whether injunctions could be granted in constitutional petitions.
- Case Law: The court referenced *Butt v. Rent Restriction Tribunal* [1982] KLR 417, which established that granting or refusing a stay of execution is a discretionary power aimed at ensuring that appeals are not rendered nugatory. The respondent also cited *Samuel Kamau Macharia & Another v KCB Limited & 2 Others* [2012] eKLR to argue against the court’s jurisdiction to grant injunctions.
- Application: The court found that it had the jurisdiction to grant an injunction as part of its original jurisdiction. It determined that the petitioner had demonstrated sufficient grounds for an injunction, given the potential for substantial loss if the collection proceeded without resolution of the appeal. The court ruled that the petitioner should deposit the disputed amount into a joint interest-earning account as a condition for the injunction.

6. Conclusion:
The court allowed the petitioner’s application for a conditional injunction, requiring the deposit of Kshs. 19,883,301.00 into a joint account within 14 days. This ruling emphasized the court's role in balancing the interests of both parties while ensuring that the appeal process could proceed without causing irreparable harm to the petitioner.

7. Dissent:
There were no dissenting opinions noted in the judgment. The ruling was delivered by Judge E. K. Ogola, and no alternative views were recorded.

8. Summary:
The High Court of Kenya ruled in favor of Samruddha Resources (Kenya) Ltd, allowing a conditional injunction against the Taita Taveta County Government's collection of transportation cess pending appeal. The decision underscores the court's commitment to safeguarding the rights of petitioners while ensuring that public interest considerations are also taken into account. The requirement for the petitioner to deposit the contested amount reflects a balanced approach to the legal and economic implications of the case.

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