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Court of AppealDismissedNot stated in the judgment

Hitenkumar Amritlal v City Council Of Nairobi [1982] KECA 54 (KLR)

Court of Appeal
23 April 1982
2,493 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal ruled it cannot force the Government to transfer land, so a buyer in a failed land deal must seek damages instead of an injunction.

What this practically means

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Executive summary

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This appeal arose from an interlocutory ruling of the High Court (Simpson J) refusing the appellant an injunction, pending trial of his suit for specific performance of a 1978 agreement with the City Council of Nairobi for the sale/allocation of a valuable commercial site between Kigali and Tubman Roads. The land had been compulsorily acquired in 1954 for the Council, which paid the compensation and used it as a car park; the Council was the beneficial owner but legal title vested in the Commissioner of Lands for the Government. After the appellant paid the stand premium and ground rent, the Government refused to grant the title, first allocating the land to Plaza Mansions Limited and later directing its development as a Sheraton Hotel. Before the Court of Appeal, counsel for the Council conceded a binding contract but said it could not specifically perform. The court (Madan, Law and Potter JJA, in a single disposition with concurring judgments) held that section 16 of the Government Proceedings Act (Cap. 40) bars injunction and specific performance against the Government, so the Council could never convey title and any order would be futile and unenforceable. Damages, though heavy and difficult to assess, were an adequate remedy since the Council was financially capable of paying them. The appeal was dismissed with costs, affirming the High Court ruling.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the learned judge correctly exercised his discretion in refusing an interlocutory injunction to restrain the City Council from disposing of the suit land pending trial
  2. 2.Whether specific performance of the agreement to sell the suit land was capable of being obtained, given that legal title vests in the Government
  3. 3.Whether damages would be an adequate remedy for the appellant

Key legal issues

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01

Whether the interlocutory injunction could stand given the impossibility of specific performance

Holding

The appeal was dismissed: the refusal of the injunction was correct because specific performance of the agreement was unobtainable, making the injunction futile, and damages were an adequate remedy since the City Council was financially capable of paying them.

Reasoning

The City Council, though beneficially entitled, held no legal title; legal title vested in the Commissioner of Lands for the Government, which on presidential instruction refused to grant the land. Section 16 of the Government Proceedings Act bars injunction and specific performance against the Government, so the Council could never convey title. Counsel for the Council conceded breach and inability to perform. The court will not make an order that cannot be enforced, and damages, though heavy and difficult, are assessable and adequate.

p. 3
02

The effect of section 16 of the Government Proceedings Act on relief against the Government

Holding

Section 16 (and its English counterpart section 21 of the Crown Proceedings Act 1947) bars injunction, specific performance and orders for recovery or delivery of property against the Government, permitting only declaratory orders; an order against a Government officer having the same effect is equally barred.

Reasoning

Potter JA traced the history from the Petitions of Right Ordinance 1910 through the Crown Proceedings Act 1956 (now Government Proceedings Act, Cap 40), modelled on the English Crown Proceedings Act 1947. Granting the injunction or specific performance would put the respondent in a position where it could not obey the court's order, since compliance would require Government action which the section forbids the court to compel.

p. 4
03

Appellate interference with the exercise of judicial discretion

Holding

The High Court judge's discretion in refusing the interlocutory injunction was exercised on sound reasons and was not shown to have erred in law or in principle, so the Court of Appeal would not interfere.

Reasoning

Law JA framed the appeal as solely concerned with whether the judge correctly exercised his discretion. The judge had held that the claim for specific performance had no probability of success given the Government decision at the highest level, and that the appellant's remedy lay in damages. That assessment was affirmed; the concession by the Council's counsel that it stood in breach and could not perform reinforced rather than undermined it.

p. 4

Legal principles established

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  • A court will not grant an injunction or order that cannot be obeyed or enforced; where the relief would be futile, damages are the proper remedy.
  • Under section 16 of the Government Proceedings Act (Cap. 40), no relief is available against the Government by way of injunction, specific performance, order for recovery of land or delivery of property, though a declaratory order may be made; and no order may be made against a Government officer that would indirectly give such relief.
  • An interlocutory injunction is appropriately granted only where the applicant establishes a probability of success in the substantive claim; a discretion exercised on sound reasons will not be disturbed on appeal absent error in law or principle.

Court orders

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  1. 1.Appeal dismissed
  2. 2.Appellant to pay the costs of the appeal

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Wrote the leading judgment. The City Council is beneficially entitled to the suit land but legal title vests in the Government; section 16 of the Government Proceedings Act bars injunction or specific performance against the Government, so any order would be futile. Damages are the appropriate remedy.

It would be quite useless to order the injunction asked for by the appellant. It is not a practical proposition in this case. The court will not make an ineffective order.p. 3
majority

Wrote the judgment

Concurring judgment. The Government as legal owner will not enable transfer of the land; the Council is powerless to compel it, so an injunction would be futile and the judge exercised his discretion correctly.

An order by the court would be futile, as it could not be enforced.p. 4
majority

Wrote the judgment

Concurring judgment tracing the statutory bar on relief against Government from the Petitions of Right Ordinance through the Crown Proceedings Act to section 16 of the Government Proceedings Act, Cap 40, and concluding damages is the proper remedy.

The proper remedy in this case is damages.p. 4
On appeal from
High Court
Not stated in the judgment
Jurisdiction invoked
Appeal to the Court of Appeal from an interlocutory decision of the High Court (ruling on a Chamber Summons under Order XXXIX rule 2(1) of the Civil Procedure Rules)

Relief refused

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Interlocutory injunction restraining the City Council from selling, disposing of or dealing with the suit land otherwise than in favour of the appellant

An order would be futile because the legal owner (the Government) cannot be compelled by injunction or specific performance under section 16 of the Government Proceedings Act, and the court will not make an ineffective order; damages are adequate

p. 3

Specific performance of the agreement to sell the suit land (practical relief)

The Government holds the legal title and, on instructions of the President, will not convey it; section 16 of the Government Proceedings Act prevents specific performance against the Government

p. 2

Costs

Appeal dismissed with costs (the appellant to pay the costs of the appeal). The underlying High Court application had been dismissed with costs.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

It would be quite useless to order the injunction asked for by the appellant. It is not a practical proposition in this case. The court will not make an ineffective order.
p. 3Futility of relief / the court will not make ineffective orders
I would dismiss the appeal with costs. As Law and Potter, JJ.A., agree it is ordered.
p. 3Final orders - disposition
no relief is available against the Government by way of injunction, specific performance, order for the recovery of land or the delivery of property, but the Court may make an order declaratory of the rights of the parties.
p. 4Section 16, Government Proceedings Act - statutory bar on relief against Government
an injunction which could only appropriately be issued if the appellant had established a probability of success in his claim for specific performance. The learned judge gave sound reasons for this decision, and has not been shown to have erred in law or in principle.
p. 4Test for interlocutory injunction and appellate review of discretion
The effect, in the circumstances of this case, of granting an injunction or specific performance to the appellant would be to put the respondent in a position in which it could not obey the order of the court.
p. 4Impossibility of compliance as ground for refusing equitable relief

Issues in the judgment

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minor

The judgment contains a duplicated and slightly garbled passage, indicating a transcription error in the copy provided.

minor

The figures paid by the appellant are stated inconsistently: the stand premium plus ground rent are given as Kshs 726,000 plus Kshs 145,200 in one passage but as Shs. 798,600/- in another.

minor

The name of the appellant company is never expressly given in the judgment text; it appears only in the Commissioner's letter as Plaza Mansions Limited.

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Hitenkumar Amritlal v City Council Of Nairobi [1982] KECA 54 (KLR)", Case Analysis (1982). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1982/54/eng@1982-04-23

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.