Miriti Mbui Muthara v Sidian Bank Limited & 3 others [2017] KEELC 786 (KLR)
The bottom line
#A Kenyan court turned a private loan settlement into a binding court order, fixing the debt at KShs 8 million and allowing land sales to repay it.
What this practically means
#Executive summary
#Key legal issues
#Adoption of the parties' consent as a court order
The court adopted the consent dated 5th December, 2017 as its order, recording that the loan liability was mutually agreed at Kshs.8,000,000/= in full and final settlement, that the plaintiff may source buyers for the three named properties, and that the consent would be in force for six months.
The parties, through their respective advocates, proffered a consent dated 5th December, 2017 and asked the court to adopt it as its order. Both the plaintiff's advocates (Basilio Gitonga, Muriithi & Associates) and the 1st and 3rd defendants' advocates (P. M. Muchira & Co) signed the consent. The court, exercising its power over settlements of suits, adopted the consent verbatim as an order and directed a mention to confirm compliance.
Legal principles established
#- A consent executed by the parties and proffered to the court may be adopted as an order of the court.
Court orders
#- 1.The consent dated 5th December, 2017 is adopted as an order of the court
- 2.By the adopted consent: the Notice of Motion by the Plaintiff dated 27th May, 2016 is marked as settled
- 3.The loan amounts to be repaid to the 1st defendant by the plaintiff are mutually agreed at Kshs.8,000,000/= in full and final settlement of the plaintiff's liabilities with the 1st defendant
- 4.The plaintiff is allowed to source a buyer for either or all of MAGUMONI/THUITA/777, MAGUMONI/ITUGURURU/427 and MAGUMONI/ITUGURURU/2034 to offset the agreed loan balance of Kshs.8,000,000/=
- 5.The 1st defendant is also at liberty to source a buyer for the said properties to offset the agreed loan balances
- 6.The consent order is in force for 6 months, after which the loan facility shall revert to earning interest at prevailing commercial rates
- 7.The suit to be mentioned within 60 days to confirm compliance
- 8.Parties to come to court for directions on 27.2.2018
- Jurisdiction invoked
- Inherent powers of the court to adopt a consent order as its order (statutory basis not stated in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Miriti Mbui Muthara v Sidian Bank Limited & 3 others [2017] KEELC 786 (KLR)", Case Analysis (2017). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/786/eng@2017-12-05
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.