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ELCPartially AllowedNotice of Motion dated 22 February 2017 (suit number not stated in the judgment)· [2017] KEELC 2812 (KLR)

Hutheifa Haji Ahmed & 3 others (suing as the administrators of the estate of Haji Ahmed Sheikh Ali) v Nondahona Company Limited & 158 others [2017] KEELC 2812 (KLR)

Environment & Land Court
31 May 2017
2,044 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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A Nakuru court ordered a land seller and its advocates' firm to refund over Kshs. 14 million after agreed refund conditions were met.

What this practically means

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Executive summary

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This was a notice of motion dated 22 February 2017 filed by the 2nd defendant (Egeswa Company Limited) and the 1st interested party (John Omundi Ogango) in a land suit before the Environment and Land Court at Nakuru, seeking implementation of a consent order dated 25 April 2013, an injunction against development of LR No. 6577/2, and costs plus interest. The plaintiffs were the administrators of the estate of Haji Ahmed Sheikh Ali, who owned LR No. 6577/1. In 2012 the plaintiffs agreed to sell 400 acres to the two defendant companies at Kshs. 300,000/- per acre. The consent of 25 April 2013 acknowledged that the 2nd defendant had paid Kshs. 12,974,000/- for 200 acres with a balance of Kshs. 5,026,000/- outstanding. When the 2nd defendant earlier moved to enforce that consent, the parties on 8 July 2015 recorded a further consent under which the firm of M/s Hari Gakinya & Company Advocates gave a professional undertaking that the 2nd defendant and the interested party would be refunded the purchase price after disposal of the subject matter. Mr. Gakinya's own affidavit confirmed the land had been sold to a third party. The court held the applicants' right to refund had crystallised and the professional undertaking was enforceable. It found no genuine dispute over the amounts: Kshs. 12,974,000/- for the 2nd defendant and the uncontroverted Kshs. 1,181,000/- for the interested party. The court ordered the plaintiffs and the advocates' firm, jointly and severally, to refund those sums within 14 days, failing which the applicants could execute against them, and awarded the applicants the costs of the application. The prayers for injunction and interest were not expressly granted.

Key legal issues

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01

Enforceability of the consent of 25 April 2013 and the professional undertaking of 8 July 2015

Holding

The application to enforce the consent and undertaking succeeds; the plaintiffs and the advocate's firm are jointly and severally obligated to make the refund

Reasoning

The consent of 25 April 2013 acknowledged payment of Kshs. 12,974,000/- by the 2nd defendant. The subsequent consent of 8 July 2015 promised a refund once the subject matter was disposed of, with a professional undertaking from M/s Hari Gakinya & Company Advocates. The plaintiffs' own advocate confirmed the land has been sold. The condition precedent for the refund was therefore satisfied, and the court found no bona fide dispute on the amounts. Both the plaintiffs and the firm gave the promise and are jointly and severally bound to honour it.

p. 3
02

Whether there is a genuine dispute over the sums payable

Holding

No dispute exists as to the sums; Kshs. 12,974,000/- for the 2nd defendant and Kshs. 1,181,000/- for the interested party are fixed by the consent and uncontroverted affidavit evidence

Reasoning

The court held that the consent of 25 April 2013 clearly fixed the 2nd defendant's payment at Kshs. 12,974,000/-. As regards the interested party, who deponed that he paid Kshs. 1,181,000/- for 23 acres, neither a replying affidavit from the plaintiffs nor Mr. Gakinya's replying affidavit disputed that figure. In the absence of refuting evidence, the sums stand as claimed and must be refunded as agreed.

p. 4

Legal principles established

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  • Once conditions attached to a consent/undertaking to refund (here, disposal of the subject land) are fulfilled, the obligation to refund crystallises and is enforceable, including against the advocate who gave a professional undertaking
  • Parties are bound by what they have agreed in a consent and cannot resile from it

Court orders

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  1. 1.The plaintiffs and the law firm of M/s Hari Gakinya & Company Advocates to ensure that the 2nd defendant is refunded the sum of Kshs. 12,974,000/- and the interested party is refunded the sum of Kshs. 1,181,000/- within 14 days from the date of the order
  2. 2.If no refund is made within the stipulated period, the applicants are at liberty to execute for these monies jointly and/or severally against the plaintiffs and the proprietor/s of the law firm of M/s Hari Gakinya & Company Advocates
  3. 3.The applicants shall have the costs of the application
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over the suit land LR No. 6577/1; enforcement of consent orders recorded in the suit

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, "Hutheifa Haji Ahmed & 3 others (suing as the administrators of the estate of Haji Ahmed Sheikh Ali) v Nondahona Company Limited & 158 others [2017] KEELC 2812 (KLR)", Case Analysis (2017). Notice of Motion dated 22 February 2017 (suit number not stated in the judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/2812/eng@2017-05-31

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