The Small Claims Court is generally expected to resolve disputes within 60 days. However, recent High Court decisions issued conflicting decisions regarding the mandatory nature of this timeline leading to legal uncertainty over the strictness of this timeline.
Some judges view the 60-day period as an aspirational goal, while others argue it is a mandatory requirement crucial for timely case resolution. This debate was highlighted in two recent cases.
In Biosystems Consultants v. Nyali Links Arcade (Civil Appeal E185 of 2023), the court addressed whether the Small Claims Court could hear and determine cases beyond the 60-day limit. The court concluded that while quick case resolution is important, it must also respect the right to a fair hearing, which may occasionally extend beyond the 60-day period. The court was of the opinion that the Small Claims Court Act does not impose penalties for missing this deadline, suggesting that the 60 days are a guideline rather than a strict rule.
In contrast, In Kartar Singh Dhupar & Company Limited v. ARM Cement PLC (In Liquidation) (Civil Appeal 129 of 2022) [2023] KEHC 2417 highlighted a different perspective. In that case, the Small Claims Court delivered a judgment after the 60-day period. The High Court ruled that since the case was decided beyond the statutory timeframe, it fell outside the court’s jurisdiction and the decision of the Small Claims Court was therefore invalid. This decision emphasized the importance of adhering to the 60-day limit, reinforcing that cases resolved beyond this period are legally ineffective.
These conflicting decisions from the Court of Appeal underscore the need for clarification on the application of the 60-day rule, as current High Court decisions offer differing interpretations of the timeframe’s import. Fortunately, the current practice before the Small Claims Court is that cases exceeding the 60 day timeline can be withdrawn and re-filed without prejudice.
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