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ELCPartially AllowedNotice of Motion dated 7th December, 2016 (suit not otherwise numbered in the judgment)· [2017] KEELC 2522 (KLR)

Maureen Wangui Kamande & 4 others v Nicholas Mwaniki Waweru t/a Mambo Moto Media & 2 others [2017] KEELC 2522 (KLR)

Environment and Land Court
30 June 2017
2,424 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

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A Kajiado court froze two Kitengela plots and ordered the sellers to bank Kshs. 6.82 million because secret loans on the land blocked the buyers' transfers.

What this practically means

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Executive summary

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The Plaintiffs, seven purchasers, moved the court by notice of motion dated 7th December 2016 seeking deposit of Kshs. 6,820,000 and injunctive relief arising from seven Sale Agreements under which the 1st Defendant, acting as promoter for the 2nd and 3rd Defendants, sold them greenhouse plots in Kitengela, Kajiado County, and collected Kshs. 6,820,000. The Plaintiffs complained that the parcels had never been subdivided or transferred and that after executing the agreements the Defendants charged LR Kajiado/Kitengela/71158 and 71159 to Unaitas Sacco Society Limited and Dream Credit Limited without disclosure, rendering the agreements frustrated. The 1st Defendant opposed the application, asserting the charge over 71159 was discharged, that none of the Plaintiffs had finished paying, and that he lacked a Power of Attorney to effect transfers. The court framed two issues: whether the contracts were frustrated, and whether an interlocutory injunction was warranted. Applying Giella v Cassman Brown, the court found the 1st Defendant had authority under the agreement preambles to sell and receive payment, so want of a Power of Attorney did not arise; that the undisclosed post-agreement charges frustrated the contracts; and that the Plaintiffs had established a prima facie case, triable issues and irreparable loss. The court granted prayers 3 and 5: the Defendants to deposit Kshs. 6,820,000 into a mutually agreed bank account within 30 days pending the hearing and determination of the suit, and an injunction restraining the Defendants and their agents from alienating, marketing, disposing of or interfering with the two parcels. Costs were ordered in the cause.

Key legal issues

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01

Frustration of the seven Sale Agreements

Holding

The contracts were frustrated by the Defendants' actions, particularly charging the suit properties to financial institutions after executing the sale agreements without informing the Plaintiffs

Reasoning

The parties admitted seven executed Sale Agreements and payment of Kshs. 6,820,000. The 1st Defendant signed as promoter with authority under the preamble to sell and receive payment, so lack of a Power of Attorney was no answer. Charges over the suit parcels were created after the agreements, were not disclosed, and one parent property was sold a day after its charge was lifted. The court held this frustrated contractual performance.

p. 4
02

Entitlement to interlocutory injunction

Holding

The Plaintiffs established a prima facie case warranting an injunction, as triable issues arise and they face irreparable loss

Reasoning

Applying Giella v Cassman Brown, the court found the existence of undischarged charges over the suit parcels rendered transfers impossible and imperilled the Plaintiffs' payment. The 1st Defendant gave no guarantee the parcels would not be auctioned and no timelines for transfer. The court found a prima facie case with triable issues and irreparable loss, granting prayers 3 and 5 only.

p. 4

Legal principles established

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  • Principles for granting a temporary injunction: prima facie case with probability of success, irreparable injury not adequately compensable in damages, and balance of convenience where the court is in doubt
  • An agent authorised under a sale agreement preamble to sell plots and receive payment cannot later plead want of a Power of Attorney to effect transfers
  • A party cannot rely on Law Society Conditions of Sale where they were not incorporated into the sale agreement

Court orders

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  1. 1.Pending the hearing and final determination of the Suit, the Defendants/Respondents to deposit a total sum of Kshs. 6,820,000 to a bank account mutually agreed upon by the parties within 30 days
  2. 2.Pending the hearing and final determination of the suit, the Defendants/Respondents, their servants, agents and or employees and or anyone else working under their directions are restrained from further alienating, marketing for sale, disposing of or interfering with LR Kajiado/Kitengela/71158 and 71159 or any part thereof
  3. 3.Costs in the cause

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 1B, 3A
  • Civil Procedure RulesOrder 51
  • Law of Contract ActSections 2 and 3
  • Registration of Documents ActNot specified
  • Constitution of KenyaNot specified

Cases cited (5)

  • Margaret Njeru Muiruri Vs. Bank of Baroda (K) Ltd
    CA 282/2004
  • National Bank of Kenya Ltd Vs. Pipe Plastic Sankolit (K)
  • Mukika Chai Dzombo Vs. Coast Development Authority
    (2014) eKLR
  • Njeri Njoroge vs Njoroge
    (2002) eKLR
  • Giella Vs. Cassman Brown & Co. Ltd
    (1973) EA 358
Jurisdiction invoked
Sections 1A, 1B, 3A of the Civil Procedure Act, Order 51 of the Civil Procedure Rules, Sections 2 and 3 of the Law of Contract Act, the Registration of Documents Act and the Constitution of Kenya

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, "Maureen Wangui Kamande & 4 others v Nicholas Mwaniki Waweru t/a Mambo Moto Media & 2 others [2017] KEELC 2522 (KLR)", Case Analysis (2017). Notice of Motion dated 7th December, 2016 (suit not otherwise numbered in the judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/2522/eng@2017-06-30

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