Automated Summary
Key Facts
The plaintiffs sought a temporary injunction to prevent the listing of Kenya Commercial Bank's July 2010 shares rights issue on the Nairobi Stock Exchange, scheduled for August 19, 2010. The court denied the injunction, ruling that the applicants' last-minute filing (August 9, 2010) deprived the application of urgency, as the listing date was imminent. The judge emphasized that granting the injunction at this stage would be unfair and inequitable, citing the plaintiffs' months-long awareness of the planned listing and failure to act earlier.
Issues
- The court evaluated the validity of the certificate of urgency for the application, noting that the applicants had ample time to file before the scheduled listing date. The ruling concluded that the perceived urgency was self-created due to the applicants' delayed action, warranting an inter partes hearing on a priority basis rather than ex parte granting.
- The court addressed whether a temporary injunction should be issued to prevent the listing of the KCB Shares Rights Issue on the Nairobi Stock Exchange, given the applicants' late application and the urgency of the matter. The ruling emphasized the need for timely action and the appropriateness of ex parte versus inter partes hearings for such injunctions.
Holdings
- The court certified the application as urgent and directed it to be heard inter partes during the vacation on a priority basis, despite the rejection of the injunction request.
- The court denied the temporary injunction requested by the applicants, finding that their delay in filing the application deprived it of urgency. The court emphasized that the applicants had sufficient time to act but chose to wait until the last moment, making the injunction unjust and inequitable at this stage.
Remedies
The court certified the application as urgent and directed that it be served for inter partes hearing during the vacation on a priority basis, while denying the temporary injunction sought by the applicants due to their delayed filing.
Legal Principles
- The court refused to grant a temporary injunction against the listing of KCB Shares Rights Issue, finding the applicants' last-minute application unjust and unconscionable. The judge emphasized that the urgency was self-created due to the applicants' failure to act timeously, and that granting the injunction would allow them to unfairly capitalize on their own delay.
- The judge determined that allowing the applicants to block the stock listing at the last minute would be unconscionable, as they had months to act but chose to wait until the Court's vacation. This principle was central to rejecting the injunction request.
Cited Statute
- The Civil Procedure Rules
- The Civil Procedure Act
- The Anti-Corruption and Economic Crimes Act
- The Judicature Act
Judge Name
L. NJAGI
Passage Text
- For the above reasons, I find that it would be unreasonable, unjust and inequitable to grant the temporary injunction sought at this late hour. To grant it would be tantamount to allowing the Applicants to steal a march on the Respondents and would also be playing to the gallery.
- The apparent urgency, therefore, has been created by the Applicants' failure to move the Court timeously. Secondly, the injunction sought is of such great moment that it ought to be granted after a well informed canvassing by all the parties. I don't think it will be proper to grant it ex parte at the instance of the Applicants who have come to Court at the last moment.
- After months of preparation for tomorrow's event, of which the Applicants were no doubt aware, I think it would be unfair to allow the Applicants to precipitate and capitalize on a crisis which was within their ability to avoid.