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ELCDismissed· [2018] KEELC 706 (KLR)

Petal Investments Limited v Tripple N Car Clinic Limited [2018] KEELC 706 (KLR)

High Court of Kenya
16 November 2018
2,150 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The High Court in Thika refused to strike out a landlord-tenant lease suit, ruling that disputed facts about the lease's signing must be tested at trial.

What this practically means

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Executive summary

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The Defendant/Applicant moved the court by Notice of Motion dated 13th December 2017 under Order 2 Rule 15(1)(a) of the Civil Procedure Rules, seeking striking out of the Plaintiff's suit on the ground that it disclosed no reasonable cause of action. The Applicant argued that the Lease, a 5 year and 3 month lease of a godown, was neither executed by the Plaintiff nor attested as required by Section 3(3) of the Law of Contract Act and Section 44 of the Land Registration Act, rendering the suit prohibited by law. The Plaintiff/Respondent opposed through a Replying Affidavit of its director Rohin Chandaria, annexing a signed and attested Lease and explaining that its advocate had erroneously annexed the wrong Lease in the List of Documents, and urging that the suit was sustainable even on pre-lease correspondence. The court framed two issues: proper execution and attestation of the Lease, and whether the suit should be struck out. It held that execution and attestation were contested factual matters that could not be resolved on affidavit evidence but only at trial with cross-examination. Applying the settled caution that pleadings should be struck out only in clear, hopeless cases incurable by amendment (D.T. Dobie line of authority), the court found the suit showed a semblance of a cause of action. The application was dismissed entirely with costs to the Plaintiff/Respondent.

Key legal issues

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01

Proper execution and attestation of the Lease Agreement under Section 3(3) of the Law of Contract Act and Section 44 of the Land Registration Act

Holding

Whether the Lease was executed and attested is a contested factual issue that cannot be resolved on affidavit evidence; it must be determined at the main hearing with cross-examination

Reasoning

The Applicant contended the Lease was not signed by the Plaintiff nor attested, violating Section 3(3) of the Law of Contract Act and Section 44 of the Land Registration Act. The Respondent annexed a signed and attested Lease to its Replying Affidavit and explained that its advocate had annexed the wrong Lease to the List of Documents. The court held this was a disputed factual question requiring oral evidence and cross-examination, unfit for summary determination.

p. 3
02

Whether the Plaintiff's suit should be struck out for disclosing no reasonable cause of action

Holding

The suit shows a semblance of a cause of action and is not hopeless or incurable by amendment; striking out was not merited

Reasoning

Order 2 Rule 15 gives the court discretion to strike out pleadings, but this jurisdiction must be exercised with extreme caution and only in very clear cases. Relying on D.T. Dobie, Trivedi v Njeri Ngiru and Prafula Enterprises, the court held that a litigant should not be driven from the seat of justice without being heard where a suit shows a mere semblance of a cause of action capable of being cured by amendment.

p. 3

Legal principles established

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  • A suit founded on a contract for the disposition of an interest in land must satisfy Section 3(3) of the Law of Contract Act - the contract must be in writing, signed by all parties and attested by a witness
  • Pleadings should only be struck out in very clear cases; where a triable issue exists, even on a document's execution, the court should sustain the suit

Court orders

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  1. 1.The Defendant's/Applicant's Notice of Motion application dated 13th December 2017 is dismissed entirely
  2. 2.Costs of the application awarded to the Plaintiff/Respondent

Authorities

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Legislation

  • Civil Procedure RulesOrder 2 Rule 15(1)(a)
  • Civil Procedure ActSections 1A, 1B, 3 and 3A
  • Law of Contract Act (Cap 23)Section 3(3)
  • Land Registration ActSection 44

Cases cited (5)

  • Kukal Properties Development Limited Vs Tafazzal H. Maloo & 3 Others
    (1993) eKLR
  • Silverbird Kenya Limited vs Junction Limited and 3 others
    (2013) eKLR
  • D.T. Dobie & Company (Kenya) Limited Vs Joseph Mbaria Muchina & another
    [1980] eKLR
  • Trivedi and Trivedi Vs Njeri Ngiru
    Civil Appeal No.129 of 1984
  • Prafula Enterprises Ltd Vs Norlake Investment Ltd & Another
    Civil Case No.145 of 1997
Jurisdiction invoked
Order 2 Rule 15(1)(a) of the Civil Procedure Rules, Sections 1A, 1B, 3 and 3A 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, "Petal Investments Limited v Tripple N Car Clinic Limited [2018] KEELC 706 (KLR)", Case Analysis (2018). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/706/eng@2018-11-16

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