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ELCPartially AllowedELC Case at Kajiado (Plaintiffs' notice of motion dated 25th November 2014 and Defendant's notice of motion dated 19th November 2014)· [2017] KEELC 12 (KLR)

Timothy Malingi Koe & another v Christoper Mitei [2017] KEELC 12 (KLR)

Environment and Land Court
15 November 2017
2,756 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kajiado court froze all dealings on twelve Kitengela land parcels after a seller rescinded a sale but kept the buyer's Kshs 1.21 million deposit without refunding it.

What this practically means

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Executive summary

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This interlocutory ruling of the Environment and Land Court at Kajiado (Christine Ochieng, J) determined two competing notices of motion arising from a failed land sale. The Defendant, registered owner of KAJIADO/KITENGELA/21086 and 21232, sold the two parcels to the Plaintiffs by Sale Agreements dated 27th June 2011, partly to be financed by Equity Bank. The Plaintiffs paid Kshs. 1,210,000 as deposit, but the parties disputed whether the deposit was short-paid, who caused the delay in completion, whether a rescission notice was properly issued, and whether the Plaintiffs encroached. The Defendant rescinded the agreement, subdivided the lands into twelve resultant parcels and sought to restrain the Plaintiffs; the Plaintiffs sought injunctive relief, alleging bad faith and citing their intention to expand their adjacent school, Rising Sun Early Learning Centre. Applying the Giella v Cassman Brown test and the Mrao definition of a prima facie case, the court found the Plaintiffs had established a prima facie case since the Defendant received the deposit, never completed the transaction, never refunded the deposit, and subdivided the lands. The court also found the Plaintiffs would suffer irreparable loss not compensable by damages, and that the balance of convenience favoured them since failure to preserve the titles of the subdivisions would destroy the substratum of the suit. The Defendant's application was disallowed; the Plaintiffs' application was found merited but the orders as sought were declined. Instead, the court registered an inhibition against all twelve resultant parcels barring dealings, lease or charge pending trial, and barred the Plaintiffs from interfering with or trespassing on the suit lands. Costs were made costs in the cause.

Key legal issues

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01

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

Holding

The Plaintiffs established a prima facie case: it was undisputed they purchased the suit lands, paid Kshs. 1,210,000 as 10% deposit, and the Defendant had neither completed the transaction nor refunded the deposit, yet subdivided the lands

Reasoning

The court found the sale and deposit payment undisputed and noted the Defendant's failure to complete despite receiving the deposit. The contractual obligations were evident from the Sale Agreements, and the Defendant's rescission and subdivision without refunding the deposit pointed to an apparent infringement of the Plaintiffs' rights calling for explanation, satisfying the Mrao definition.

p. 3
02

Whether the parties would suffer irreparable loss not compensable by damages

Holding

The Plaintiffs, as opposed to the Defendant, would suffer irreparable loss if the temporary injunctive orders were not granted

Reasoning

The court noted the Plaintiffs contracted to purchase the lands to expand their school and had engaged Equity Bank as financier; the Defendant rescinded, subdivided the lands, and admitted he had not refunded the deposit. Although the Defendant claimed encroachment, the court held two wrongs do not make a right and found the Plaintiffs' loss could not adequately be compensated in damages.

p. 3
03

Where the balance of convenience lies

Holding

The balance of convenience tilts in favour of the Plaintiffs; preservation of the titles to the resultant subdivisions was necessary to avoid losing the substratum of the suit

Reasoning

The court reasoned that if the titles of the resultant subdivisions were not preserved, the sub stratum of the suit would be lost, making the inhibition order the appropriate preservation measure pending full hearing.

p. 3

Legal principles established

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  • The test for a temporary injunction is the Giella tripartite test: prima facie case with probability of success, irreparable injury not compensable by damages, and balance of convenience if in doubt
  • A prima facie case is one in which, on the material presented, a tribunal properly directing itself concludes there exists a right which has apparently been infringed by the opposite party so as to call for an explanation or rebuttal

Court orders

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  1. 1.An inhibition order registered by the Land Registrar Kajiado against L.R Nos KAJIADO/KITENGELA/63935, 63936, 63937, 63038, 63939, 63940, 63941, 63942, 63943, 63944, 63945 and 63946 (resultant subdivisions of KAJIADO/KITENGELA/21086 and KAJIADO/KITENGELA/21232) against any dealings, lease or charge pending the hearing and determination of the suit
  2. 2.The Plaintiffs barred from interfering with and/or trespassing upon the suit lands comprising the said resultant subdivisions pending the hearing and determination of the suit
  3. 3.Defendant's application dated 19th November 2014 disallowed
  4. 4.Costs in the cause

Authorities

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Legislation

  • Civil Procedure ActSection 3A
  • Civil Procedure ActSections 1, 1A, 63(e)
  • Civil Procedure RulesOrder 40 Rules 1, 2, 3, 4 & 9
  • Civil Procedure RulesOrder 51 Rule 1
  • Environment and Land Court ActSection 13

Cases cited (2)

  • Giella Vs. Cassman Brown & Co. Ltd
    (1973) EA 358
  • Mrao Limited Vs. First American Bank of Kenya Limited & 2 others
    (2003) KLR 125
Jurisdiction invoked
Sections 1, 1A, 3A and 63(e) of the Civil Procedure Act; Order 40 Rules 1, 2, 3, 4 & 9 and Order 51 Rule 1 of the Civil Procedure Rules; Section 13 of the Environment and Land Court 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, "Timothy Malingi Koe & another v Christoper Mitei [2017] KEELC 12 (KLR)", Case Analysis (2017). ELC Case at Kajiado (Plaintiffs' notice of motion dated 25th November 2014 and Defendant's notice of motion dated 19th November 2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/12/eng@2017-11-15

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