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ELCDismissedNotice of motion dated 24/6/2014 (ELC, Kitale)· [2014] KEELC 240 (KLR)

Jiangxi Zhongmei Engineering Construction Co. Ltd v Dickson Makheti Muyundo [2014] KEELC 240 (KLR)

Environment and Land Court
24 July 2014
1,264 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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A Kenyan court refused to protect a company's continued use of leased land because the lease had expired and clearly contained no renewal clause.

What this practically means

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Executive summary

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China Wu Yi Limited, a construction company building the Kitale–Webuye road, leased the respondent's land, LR Nzoia/Moi's Bridge Block 1/513, for two years from 6/6/2012 to excavate stones for road construction. Before expiry it sought renewal; the respondent's advocate said there was no renewal clause and renewal could only be on fresh terms. After the lease expired, the applicant moved to court by notice of motion dated 24/6/2014 seeking an interlocutory injunction restraining the respondent from interfering with its quiet enjoyment, use and occupation of the land, contending that clause 3(10) of the lease gave it an option to renew for a further year at Kshs.100,000. The respondent opposed, asserting the lease had lapsed and there was nothing to preserve. Applying the settled Giella principles, the court set out the sole issue as whether the applicant was entitled to injunctive orders. Reading clause 3(10) plainly, the court held it provided only for a Kshs.100,000 deduction from the contract sum if the project was not completed on time, not a renewal option; the suggestion that the contract was poorly drafted by a Chinese author was unsupported by affidavit. The lease had expired with no renewal provision, so there was no prima facie case. Nor was irreparable injury shown: any claim about uncollected stones surfaced late and their value was ascertainable. The balance of convenience did not arise. The application was dismissed with costs to the respondent.

Key legal issues

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01

Whether the applicant established a prima facie case with a probability of success

Holding

No - the lease contained no renewal clause; clause 3(10) provided only for a deduction of Kshs.100,000 from the contract sum if the project was not completed on time, and the lease had expired

Reasoning

The court examined clause 3(10) of the lease and gave it a plain reading. It found no provision for renewal; the clause merely allowed a Kshs.100,000 deduction/refund from the contract sum if the project was not completed within two years. The submission that the contract was drafted by a Chinese national who did not understand English was made from the bar without affidavit evidence. The respondent had offered renewal on fresh terms, which the applicant never took.

p. 2
02

Whether the applicant would suffer irreparable injury not compensable in damages

Holding

No - any claim regarding excavated stones left on site was raised late and its value is ascertainable

Reasoning

The applicant claimed the respondent prevented it from removing excavated stones, but nothing in the pleadings or supporting affidavit mentioned such stones; the issue first appeared in the affidavit supporting urgency. The court held that if stones were on site, their value could be ascertained, so any injury would be compensable in damages.

p. 3
03

Balance of convenience

Holding

Not reached - the court was not in doubt as to the outcome

Reasoning

Having found no prima facie case and no irreparable injury, the court did not need to consider where the balance of convenience lay.

p. 3

Legal principles established

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  • The applicant for an interlocutory injunction must demonstrate a prima facie case with probability of success, irreparable injury not compensable by damages, and, if in doubt, the balance of convenience
  • A prima facie case in a civil application is a genuine and arguable case in which a right has apparently been infringed so as to call for an explanation or rebuttal
  • Where a contract clause is plain and unambiguous, the court need not go behind it to ascertain the parties' intention

Court orders

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  1. 1.The applicant's notice of motion dated 24/6/2014 seeking an interlocutory injunction is dismissed with costs to the respondent

Authorities

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Cases cited (1)

  • Mrao -Vs- First American Bank of Kenya Limited and 2 others
    (2003) KLR 125
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over an interlocutory application in a land dispute

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, "Jiangxi Zhongmei Engineering Construction Co. Ltd v Dickson Makheti Muyundo [2014] KEELC 240 (KLR)", Case Analysis (2014). Notice of motion dated 24/6/2014 (ELC, Kitale). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2014/240/eng@2014-07-24

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