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ELCDismissedNotice of motion dated 19th May 2016 (suit number not stated in judgment)· [2017] KEELC 3623 (KLR)

W.E. Tilley (Muthaiga) Limited & another v Victoria Distributors Limited & another [2017] KEELC 3623 (KLR)

Environment and Land Court
8 February 2017
1,353 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court refused to stop a landlord from auctioning a tenant's goods over unpaid rent because the tenant admitted owing rent.

What this practically means

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Executive summary

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The 1st and 2nd Plaintiffs moved the court by notice of motion dated 19th May 2016 under Order 40 Rules 1 and 4 and Order 51 Rule 1 of the Civil Procedure Rules and Section 63(e) of the Civil Procedure Act, seeking a temporary injunction restraining the 1st and 2nd Defendants from distressing, attaching, advertising, auctioning or dealing with the Plaintiffs' items on L.R. Kisumu Municipality/Block 3/123, and a declaration that the 2nd Defendant's proclamation of 14th May 2016 was illegal and should be set aside. The application was supported by the affidavit of Zulfikar Haiderali Jessa, opposed by Vuay Dawda for the 1st Defendant and by Priscilla Nduru Njuguna for IDB Capital Limited, the Interested Party. Interim orders had been granted on 23rd May 2016. The court framed four issues: prima facie case, alleged contravention of an order of 27th October 2015 in Nairobi High Court Commercial & Admiralty C.C. No.522 of 2015, appropriate orders, and costs. The court held that the 1st Plaintiff admitted rent arrears; the Nairobi order bound only twenty named Defendants and their servants or agents over scheduled assets that did not include the Kisumu premises; the landlord was not enjoined by that order; and no irreparable harm or balance of convenience favoured the Plaintiffs. The notice of motion was dismissed with costs and the interim orders of 23rd May 2016 were vacated.

Key legal issues

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01

Prima facie case for interlocutory injunction

Holding

The Plaintiffs failed to establish a prima facie case with a probability of success

Reasoning

The 1st Plaintiff admitted rent arrears, and the 1st Defendant lawfully instructed the 2nd Defendant to distress for rent. The court found the tenancy relationship and arrears undisputed, so no serious question for trial was demonstrated to justify an interlocutory injunction.

p. 3
02

Contravention of the Nairobi High Court order of 27th October 2015

Holding

The distress did not contravene the order; the premises were not among the scheduled assets and the landlord was not among the enjoined parties

Reasoning

The court read the order as binding only the twenty named Defendants/Respondents and their servants or agents in respect of listed assets. Kisumu Municipality/Block 3/123 was not in the schedule, and the 1st Defendant landlord was neither named nor shown to act for any enjoined party, so the distress was lawful.

p. 3
03

Irreparable harm and balance of convenience

Holding

Neither was established in the Plaintiffs' favour

Reasoning

The court found no evidence of irreparable harm if the injunction was refused, and observed that the Defendants were exercising a lawful landlord's remedy against a tenant in arrears, so the balance of convenience did not favour granting the interlocutory orders sought.

p. 3

Legal principles established

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  • A landlord not named in or bound by an injunction order, and not shown to be a servant or agent of the enjoined parties, may exercise the statutory right of distress for rent notwithstanding the order
  • An applicant for a temporary injunction must establish a prima facie case, irreparable harm and that the balance of convenience favours the order

Court orders

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  1. 1.Notice of motion dated 19th May 2016 dismissed with costs
  2. 2.Interim orders issued on 23rd May 2016 vacated

Authorities

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Legislation

  • Civil Procedure RulesOrder 40 Rules 1 and 4; Order 51 Rule 1
  • Civil Procedure ActSection 63(e)
Jurisdiction invoked
Order 40 Rules 1 and 4, Order 51 Rule 1 of the Civil Procedure Rules and Section 63(e) of the Civil Procedure Act

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, "W.E. Tilley (Muthaiga) Limited & another v Victoria Distributors Limited & another [2017] KEELC 3623 (KLR)", Case Analysis (2017). Notice of motion dated 19th May 2016 (suit number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/3623/eng@2017-02-08

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