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ELCAllowedNot stated in the judgment as provided· [2015] KEELC 846 (KLR)

Mbugua alias Goerge Boniface Nyanja v Chaudry (Environment & Land Case 1107 of 2013) [2015] KEELC 846 (KLR)

High Court of Kenya
4 February 2015
2,926 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's High Court stopped auctioneers from attaching a purchaser's property, confirming that a buyer who has paid the purchase price cannot be treated as a rent-owing tenant.

What this practically means

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Executive summary

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The Plaintiff, claiming to be a purchaser for value in occupation since 1985 of LR No. 1/387 along Ngong' Road, Nairobi, brought a Chamber Summons under Order 40 of the Civil Procedure Rules seeking to restrain the Defendant, M/S Westminister Merchants auctioneers, from attaching or interfering with his office furniture, computers, motor vehicles and other goods following a proclamation of attachment dated 9th March 2012. The Plaintiff asserted he was not a tenant and owed no rent, having bought the property from the late Ghulam Rasool and paid the full purchase price, though transfer never occurred due to the vendor's death. The Defendant contended the sale agreement was rescinded for non-payment of the balance, that the Plaintiff was only a tenant at will at Kshs 15,000/- per month, and that it was entitled to levy distress for arrears said to exceed Kshs 25 million without court process. Relying on the Giella v Cassman Brown test, the court found, on the correspondence exhibited, that payments had been confirmed received and only transfer was outstanding, giving the Plaintiff a beneficial interest and a prima facie case with probability of success. The court also found irreparable harm not compensable in damages given the length of occupation and the colossal rent claim, and held the distress premature since no right to rent had crystallised. The application was allowed with an injunction until hearing and determination of the suit; costs were ordered to be in the cause.

Key legal issues

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01

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

Holding

Yes - correspondence showed the purchase price had been paid and only transfer remained outstanding, giving the Plaintiff a beneficial interest.

Reasoning

The court perused the Plaintiff's bundle of documents and found ongoing negotiations and correspondence on completion of the contract through to 1987, including confirmation by the vendor's advocate that payments had been received. The correspondence pointed to full payment, with only the transfer outstanding. This established a beneficial interest in the suit property and hence a prima facie case with probability of success under the Giella test.

p. 5
02

Whether the Plaintiff would suffer irreparable harm not compensable by damages

Holding

Yes - occupation since 1985, evidence of payment, and the colossal rent claim meant damages would be inadequate, especially as the Defendant did not plead willingness to compensate in damages.

Reasoning

Applying Nguruman, the court held the injury from attachment would be actual, substantial and not adequately measurable in money. The Plaintiff had occupied since 1985 with evidence of paying the purchase price, while the Defendant claimed an enormous rent sum. The Defendant had not pleaded readiness and willingness to compensate in damages, and no right to the rent had crystallised, making distress premature.

p. 5

Legal principles established

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  • A prima facie case is a genuine and arguable case showing an apparently infringed right calling for an explanation or rebuttal from the opposite party.
  • Where a purchaser in possession shows payment of the purchase price, distress for rent is premature before the right to such rent has crystallised.

Court orders

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  1. 1.The Defendant, M/S Westminister Merchants, and/or the Defendant's other agents, servants, employees and or any other persons claiming through him be and hereby restrained from attaching or in any way dealing with, alienating or interfering with the Plaintiff's office furniture, computers, motor vehicles or any other properties belonging to the Plaintiff in LR No. 1/387 along Ngong' Road, Nairobi, until the hearing and determination of the suit herein and/or further orders of the court.
  2. 2.The Costs of the Plaintiff's Chamber Summons dated 16th March 2013 shall be in the cause.

Authorities

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Legislation

  • Civil Procedure RulesOrder 40 Rules 1, 2, 3 and 4
  • Civil Procedure Actsection 3A
  • Distress for Rent Actsection 3(1)
  • Limitation of Actions Actsection 8

Cases cited (8)

  • Giella vs Cassman Brown & Co Ltd
    (1973) EA 358
  • Mrao Ltd v First American Bank of Kenya Ltd & 2 Others
    [2003] eKLR
  • Nguruman Limited vs. Jan Bonde Nielsen & 2 Others
    (2014) eKLR
  • Hagee (London) Ltd vs. A.B Erikson and Larson (a firm) and 7 Others
    (1975) 3 All ER 234
  • Javad vs. Mohamed Aqil
    (1991) 1 All ER 243
  • Wheeler vs. Mercer
    (1956) 3 All ER 631
  • Meyers vs. Casey
    (1913) 17 CLR 90
  • Alghussein Establishment vs. Elton College
    (1991) 1 All ER 20
Jurisdiction invoked
Order 40 Rules 1, 2, 3 and 4 of the Civil Procedure Rules and section 3A of the Civil Procedure Act

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, "Mbugua alias Goerge Boniface Nyanja v Chaudry (Environment & Land Case 1107 of 2013) [2015] KEELC 846 (KLR)", Case Analysis (2015). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2015/846/eng@2015-02-04

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