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ELCAllowedNotice of Motion dated 23rd February 2017 (suit over Plot Number 1003 within Mtwapa)· [2017] KEELC 246 (KLR)

M’mbetsa Chikololo Suma v Kalume Karisa Mbitha [2017] KEELC 246 (KLR)

Environment and Land Court / High Court (Mombasa)
27 September 2017
1,603 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Mombasa court stopped a landowner from selling Mtwapa land after he took Kshs.1.1 million but never transferred it to the buyer.

What this practically means

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Executive summary

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The plaintiff applied by Notice of Motion dated 23rd February 2017, under Section 1A of the Civil Procedure Act and Order 40 Rules 1-4 of the Civil Procedure Rules, for a temporary injunction restraining the defendant from alienating, disposing of, transferring or dealing with Plot Number 1003 within Mtwapa (certificate of Title Number CR 655521, measuring 0.4047 hectares, sub division 8451) and restraining the Land Registrar Mombasa from registering any dealings over it, pending hearing of the suit. The plaintiff contended that by a sale agreement dated 18/10/2010, varied on 17/4/2011, he agreed to purchase 0.4047 hectares excised from Plot 1003 for Kshs.1,700,000; he paid Kshs.1,100,000 with the balance of Kshs.600,000 payable on transfer, but the defendant breached the agreement and was in the process of selling the property to a third party. The defendant, in a replying affidavit sworn 6/4/2017, did not dispute the agreement but alleged it was frustrated by the plaintiff's letter of 14/8/2014, contending the claim was for a liquidated sum, that no irreparable loss was shown, and that the balance of convenience favoured him as registered owner; he offered to refund the purchase price. Applying the Giella v Cassman Brown principles and Mrao v First American Bank on the definition of a prima facie case, the court found the plaintiff had established a prima facie case with probability of success, that irreparable loss was likely since the defendant had taken no steps to refund the purchase price, and that the balance of convenience favoured the plaintiff. The defendant's liquidated-sum argument failed because the plaint also sought specific performance. The court granted both temporary injunctions and ordered costs of the application to be in the cause.

Key legal issues

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01

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

Holding

Yes - he paid Kshs.1,100,000 as part of the purchase price and the defendant has not effected transfer despite receiving the money.

Reasoning

The plaintiff entered into a sale agreement on 18/10/2010 for 0.04047 hectares excised from Plot 1003 Mtwapa, later varied by a deed of variation on 17/4/2011. He paid Kshs.1,100,000 with the balance of Kshs.600,000 payable on successful transfer. The defendant received the money but never effected the transfer. Applying Mrao v First American Bank, the plaintiff demonstrated an apparent infringement of a right calling for rebuttal, hence a prima facie case with probability of success.

p. 2
02

Whether the plaintiff would suffer irreparable loss not compensable by damages, and where the balance of convenience lies

Holding

Yes - the defendant, as registered owner, is likely to dispose of the property to a third party, and has taken no concrete steps to refund the purchase price; the balance of convenience tilts towards the plaintiff.

Reasoning

The defendant claimed he was willing to refund the purchase price but failed to demonstrate any steps taken since the suit was filed to effect a refund or any proposals made to the plaintiff. The court found the plaintiff's fear of disposal real, holding that he would lose both the land and the purchase price if the orders were not granted, and that the balance of convenience favoured the plaintiff since the defendant admitted the sale agreement and had not refunded the money.

p. 3
03

Whether the plaintiff's claim is for a liquidated sum, disqualifying injunctive relief

Holding

No - the plaint also seeks specific performance in the alternative, so the defendant's argument that the claim is purely liquidated fails.

Reasoning

The defendant argued the plaintiff sought a liquidated sum, hence no injunction could issue and no irreparable loss was possible. The court examined the plaint dated 17/7/2015 and found that beyond the claim for Kshs.1,100,000 with interest, the plaintiff sought specific performance directing the defendant to execute transfer documents, and in default, that the Deputy Registrar execute them. The contention that the claim was solely for a liquidated sum was therefore untrue.

p. 2

Legal principles established

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  • The Giella v Cassman Brown principles govern the grant of temporary injunctions: prima facie case with probability of success, irreparable injury not compensable by damages, and balance of convenience if in doubt.
  • A prima facie case in civil cases is one in which on the material presented the court concludes there exists a right apparently infringed by the opposite party so as to call for an explanation or rebuttal (Mrao Ltd v First American Bank).

Court orders

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  1. 1.A temporary injunction issued against the defendant/respondent, his agents, employees and servants, restraining them from disposing, alienating, transferring and dealing with the suit property (Plot Number 1003 within Mtwapa, certificate of Title Number CR 655521, measuring 0.4047 hectares, sub division 8451, original Number 1003/2) pending hearing and determination of the suit.
  2. 2.A temporary injunction issued restraining the Land Registrar Mombasa from issuing, registering, transferring or in any other manner dealing with the suit property pending hearing and determination of the suit.
  3. 3.Costs of the application to be in the cause.

Authorities

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Legislation

  • Civil Procedure ActSection 1A
  • Civil Procedure RulesOrder 40 Rules 1, 2, 3 and 4

Cases cited (4)

  • Giella –Versus- Cassman Brown And Company Limited
    (1973) EA 358
  • Daniel Kipkenda Rono –versus- James Kariuki Ng'ang'a And 4 others
    (2013) eKLR
  • Naftal Ruthi Kinyua – versus- Patrick Thuita Gachure And Anotehr
    (2015) eKLR
  • Mrao Limited –versus- First American Bank Limited And 2 others
    (2003) KLR 125
Jurisdiction invoked
Section 1A of the Civil Procedure Act and Order 40 Rules 1, 2, 3 and 4 of the Civil Procedure Rules

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, "M’mbetsa Chikololo Suma v Kalume Karisa Mbitha [2017] KEELC 246 (KLR)", Case Analysis (2017). Notice of Motion dated 23rd February 2017 (suit over Plot Number 1003 within Mtwapa). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/246/eng@2017-09-27

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