Automated Summary
Key Facts
New Milimani Sacco Limited (Plaintiff) filed a defamation suit in 2016 against Sacco Societies Regulatory Authority (Defendant), seeking Kshs. 522,308,287 in damages. The Defendant denied liability and counterclaimed, requesting an order to prohibit the Plaintiff's deposit-taking business and authorization to supervise its winding down. In 2017, the court ordered the Plaintiff to deposit Kshs. 25 million in a joint account within seven days, later reduced to Kshs. 10 million to be deposited within 60 days. The Plaintiff failed to comply, leading to the suit's dismissal in 2020. The Defendant then filed a Bill of Costs in 2021 (Kshs. 24,995,860), with subsequent procedural motions to change advocates and reschedule taxation. By 2023, the Plaintiff's advocates withdrew, leaving the matter inactive until its selection for the Rapid Results Initiative (RRI) in 2024. The court directed the file to be placed before the Deputy Registrar-Civil Division and prioritized directions on the Bill of Costs taxation.
Issues
- The Defendant's counterclaim sought to prohibit the Plaintiff from continuing deposit-taking activities and requested authorization to supervise its winding down, challenging the Plaintiff's business operations.
- The court addressed the taxation of the Defendant's Bill of Costs, which was pending at the time of the Rapid Results Initiative referral, with directions for re-taxation proceedings.
- The court examined whether the Defendant's alleged defamatory publications on 10.09.2015 justified the Plaintiff's claim for Kshs. 522,308,287/- in compensation under the tort of defamation.
- The court considered the Defendant's application to dismiss the Plaintiff's suit due to non-compliance with the 2019 order requiring a Kshs. 10,000,000/- deposit, which was allowed in 2020.
Holdings
- The court determined that the suit was erroneously listed for judgment as it had already been dismissed on 26.05.2020 by Kamau, J., with no evidence of the ruling being varied, set aside, or challenged.
- The court directed the file to be placed before the Deputy Registrar-Civil Division within seven days and for the parties to take a priority date to address the taxation of the Bill of Costs dated 12.05.2021.
Remedies
- The court dismissed the Plaintiff's suit on 26.05.2020 for non-compliance with the order requiring the deposit of Kshs. 10,000,000/- in a joint account within 60 days. The ruling was delivered by Kamau, J.
- The taxation proceedings for the Bill of Costs were set aside on 23.06.2022 by consent of the parties, with no order as to costs. The matter was to be taxed afresh before the taxing master.
Legal Principles
- The Defendant sought an interim injunction to prohibit the Plaintiff from continuing deposit-taking business activities, which was upheld by the court.
- The court applied principles of defamation law, with the Defendant challenging the Plaintiff's claims under the tort of defamation.
Judge Name
- T. W. Ouya
- Kamau
- Meoli
Passage Text
- the said Judge ordered; by consent of the parties herein; that the taxation proceedings be set aside with no order as to costs, and the matter be taxed afresh on 2.08.2022 before the taxing master.
- the suit stood dismissed as from 26.05.2020 pursuant to the aforementioned ruling delivered by Kamau, J. There is nothing on the record to indicate that the said ruling was either varied, set aside or otherwise challenged.
- This court hereby issues the following directions: a. That the file in respect of the present suit be placed before the Deputy Registrar-Civil Division within seven (7) days of this day.