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Court of AppealAllowedCivil Application No. 168 of 2014 (UR 131/2014)· [2016] KECA 594 (KLR)

Public Service Club Registered Trustees v Mary Wangeci Kethi Kariithi & 3 others [2016] KECA 594 (KLR)

Court of Appeal of Kenya
6 May 2016
2,812 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 blocked the sale of disputed Nairobi land until an appeal is heard, because selling it would make the appeal pointless.

What this practically means

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Executive summary

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The applicants, trustees of the Public Service Club and registered proprietors of Nairobi LR No. 209/1408 (18.95 acres), sought an injunction under Rule 5(2)(b) of the Court of Appeal Rules pending an intended appeal against a High Court judgment (Nyamweya, J., dated 17 June 2014) that dismissed their claim to the adjoining smaller parcel LR No. 209/9629 (1.404 hectares), registered in the name of the late G.K. Kariithi whose executors are the respondents. The High Court held the claim statute-barred under Section 7 of the Limitation of Actions Act, the suit having been filed in June 1993, 18 years after the alleged excision and allotment in 1975, and further invoked estoppel. The applicants contended the smaller parcel was fraudulently excised from their land by the Commissioner of Lands and that limitation cannot run against a party in possession. Applying the twin Rule 5(2)(b) principles, the Court found several arguable grounds, notably whether limitation applies against a person in possession of the disputed property and whether estoppel can divest proprietary rights. It was further satisfied that alienation or subdivision of the parcel by the respondents would render the appeal nugatory, noting the respondents had never been in physical possession. The Court allowed the application and issued an injunction restraining the respondents from alienating, selling or interfering with the applicants' use of LR No. 209/9629 until the hearing and determination of the intended appeal, with costs in the appeal. This is an interlocutory ruling; it does not disturb the High Court decision, which remains intact pending the intended appeal.

Key legal issues

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01

Whether the intended appeal is arguable

Holding

The Court found multiple arguable grounds, principally whether limitation under Section 7 of the Limitation of Actions Act can run against a party in possession of the disputed property.

Reasoning

The Court identified the trial court's ratio as that the claim was statute-barred, and considered it arguable whether limitation applies against a person in possession, whether estoppel can divest proprietary rights, whether the larger parcel was surrendered, when any fraud was discovered, and whether the parcels overlap. One arguable point suffices.

p. 4
02

Whether the appeal would be rendered nugatory without an injunction

Holding

The Court was satisfied that alienation or subdivision of LR No. 209/9629 by the respondents would render the intended appeal nugatory, warranting preservation of the status quo.

Reasoning

The Court noted the respondents had never been in actual physical possession of the disputed parcel and that the dispute was long drawn. It balanced competing rights and interests, citing the inherent power of courts to preserve the subject matter to ensure the ends of justice.

p. 5

Legal principles established

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  • On an application under Rule 5(2)(b), the applicant must satisfy the twin principles that the intended appeal is arguable and that it would be rendered nugatory unless the order sought is granted; a single arguable point suffices.
  • An arguable ground of appeal need not be one that must succeed, only one that is arguable, and a single arguable point is enough on a stay or injunction application.
  • An injunctive order under Rule 5(2)(b) is a preservation measure for the subject matter of a pending appeal.

Court orders

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  1. 1.An injunction to restrain the respondents, their servants, employees or agents from alienating, selling and or interfering with the applicant's user and or dealing with LR No. 209/9629 until the hearing and determination of the intended appeal
  2. 2.Costs in the appeal

Authorities

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Legislation

  • Limitation of Actions ActSection 7
  • Court of Appeal RulesRule 5(2)(b)

Cases cited (4)

  • Githunguri vs. Jimba Credit Corporation Ltd. (No. 2)
    (1988) KLR 838
  • J.K. Industries Ltd. vs. Kenya Commercial Bank Ltd.
    [1982 – 88] 1 KAR 1088
  • Reliance Bank Limited (In Liquidation) vs. Norlake Investments Limited – Civil Application No. 98 of 2002
    unreported
  • Equity Bank Limited -vs- West Link MBO Limited Civil Application No. 78 of 2011
On appeal from
High Court of Kenya at Nairobi
H.C.C.C. No. 3000 of 1993
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules (injunction pending the hearing and determination of an intended appeal)

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, "Public Service Club Registered Trustees v Mary Wangeci Kethi Kariithi & 3 others [2016] KECA 594 (KLR)", Case Analysis (2016). Civil Application No. 168 of 2014 (UR 131/2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2016/594/eng@2016-05-06

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