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ELCDismissedMalindi ELC (Notice of Motion dated 13th July 2016 within the suit filed 14th July 2016)· [2017] KEELC 2200 (KLR)

Vital Plantation Lease Company Limited & another v Fresco Bushlands (K) Limited& another [2017] KEELC 2200 (KLR)

Environment and Land Court
27 July 2017
2,234 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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Two companies lost their bid to protect a vast plantation because they couldn't prove who actually held rights to the land.

What this practically means

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Executive summary

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This ruling by the Environment and Land Court at Malindi (Olola J) disposed of a Notice of Motion dated 13th July 2016 in which the Plaintiffs, two associated companies, sought interlocutory and mandatory injunctions restraining the Defendants, Fresco Bushlands (K) Ltd and the Agricultural Development Corporation, from interfering with their occupation and running of the suit property, and from accessing, trespassing on, demolishing or dealing with a portion of approximately 70,000 acres known as Kulalu Plantation, excised under a lease dated 8th September 2008, pending a proposed arbitration. The 1st Defendant opposed, asserting there was no arbitration agreement, that prior court orders in other suits between the parties barred the reliefs sought, and that the application abused court process. The 2nd Defendant similarly opposed, contending the 2nd Plaintiff was a stranger to the lease, that the 1st Plaintiff was in substantial rent arrears, and that boundary details were only communicated in April 2016. The court applied the Giella v Cassman Brown test as clarified in Mrao and Nguruman, and held that the Plaintiffs failed to establish a prima facie case: the executed lease was between the 1st Plaintiff and the 2nd Defendant only, and no evidence demonstrated the 2nd Plaintiff's interest. Further, subsisting High Court orders in Civil Case No. 123 of 2013 could not be contradicted, and Section 6 of the Arbitration Act barred the court from examining the merits of the dispute already referred to arbitration. The application was dismissed with costs to the Respondent.

Key legal issues

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01

Whether the Plaintiffs established a prima facie case for interlocutory injunctive relief

Holding

They did not; the lease was between the 1st Plaintiff and the 2nd Defendant only, and nothing demonstrated the 2nd Plaintiff's vested interest in the suit land

Reasoning

The court examined the pleadings and found the executed lease was between the 1st Plaintiff and the 2nd Defendant, while the 1st Defendant held a separate lease. No evidence of affiliation between the Plaintiffs or of the 2nd Plaintiff's interest was placed before the court, so the applicants failed the threshold in Giella and Nguruman.

p. 4
02

Whether the court could issue an injunction conflicting with existing High Court orders in High Court Civil Case No. 123 of 2013

Holding

It could not, as those orders remain valid and have neither been discharged nor set aside

Reasoning

The 1st Defendant had obtained orders in the High Court barring the 2nd Defendant from disturbing its leasehold interests. Since those orders subsisted, granting the injunction sought would require the 2nd Defendant to violate subsisting court orders, which the court declined to do.

p. 4
03

Whether the court could consider a mandatory injunction pending the proposed Arbitration

Holding

It could not, because Section 6 of the Arbitration Act bars the court from delving into the merits of a referred dispute

Reasoning

The dispute between the 1st Plaintiff and the 2nd Defendant had already been referred to arbitration in ELC No. 95 of 2014, and those orders had not been discharged. The court therefore could not interrogate the merits or the applicants' chances of success to justify the injunction.

p. 5

Legal principles established

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  • The conditions for the grant of an interlocutory injunction are a prima facie case with a probability of success, irreparable injury not compensable by damages, and if in doubt, the balance of convenience
  • A prima facie case is one where, on the material presented, the court concludes a right has apparently been infringed so as to call for an explanation or rebuttal
  • The party asserting a prima facie case must show a clear and unmistakable right directly threatened by the act sought to be restrained

Court orders

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  1. 1.The application dated 13th July 2016 is dismissed with costs to the Respondent

Authorities

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Legislation

  • Arbitration ActSection 6
  • Companies Act Cap 486 of the Laws of Kenyanot specified

Cases cited (7)

  • Giella –vs- Cassman Brown & Company Ltd
    (1973) EA 358
  • Mrao Ltd –vs- First American Bank of Kenya Ltd & 2 Others
    (2003) eKLR
  • Nguruman Limited –vs- Jan Bonde Nielsen & 2 Others
    (2014) eKLR (Civil Appeal No. 77 of 2012)
  • Vital Plantation Company Limited & Another –vs- Agricultural Development Corporation
    ELC No. 95 of 2014
  • Fresco Bushland (K) Ltd –vs- Agricultural Development Corporation
    Civil Case No. 123 of 2013
  • Fresco Bushlands (K) Ltd –vs- Warsame Mohammed Issak & Others
    ELC Case No. 5 of 2015
  • Fresco Bushlands (K) Ltd –vs- Warsame Mohamed Issak & Others
    Malindi Civil Appeal No. 107 of 2016
Jurisdiction invoked
Inherent jurisdiction of the court to grant interlocutory injunctive relief in a suit before the Environment and Land Court

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, "Vital Plantation Lease Company Limited & another v Fresco Bushlands (K) Limited& another [2017] KEELC 2200 (KLR)", Case Analysis (2017). Malindi ELC (Notice of Motion dated 13th July 2016 within the suit filed 14th July 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/2200/eng@2017-07-27

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