Tachasis Wholesalers Co. Limited v National Bank of Kenya Ltd [2018] KEELC 1046 (KLR)
The bottom line
#A Kenyan court ruled that disputes over a bank charge and loan accounts belong in the High Court, not the Environment and Land Court.
What this practically means
#Executive summary
#Key legal issues
#Whether the Environment and Land Court has jurisdiction over a dispute on a charge and taking of accounts
It does not; jurisdiction lies with the High Court because the dispute concerns the realization of security after default and the taking of accounts, not use of land
Relying on the Court of Appeal decision in Co-operative Bank of Kenya Ltd v Patrick Kangethe & Others, the court adopted the reasoning that a charge creates rights over land as security for money and is a disposition, not a use of land under Article 162. As the cause of action here was accounts and realization of security after default, the E & L Court lacked jurisdiction and was bound by the Court of Appeal's decision.
Whether the two suits should be consolidated and heard as one action
Not granted; the court instead transferred the matter to the High Court on jurisdictional grounds
The applicant sought consolidation of the two suits, which involved the same parties, the same loan and the same prayers, to avoid duplication and multiplicity of suits. However, the court first determined jurisdiction, holding that the dispute revolves on a charge and the taking of accounts, and therefore transferred the matter to the High Court rather than ordering consolidation.
Legal principles established
#- Jurisdiction is everything; without it a court must down its tools
- A charge is an interest in land securing payment of money; its creation does not amount to use of land within Article 162 of the Constitution, so charge disputes (including realization of security and accounts) fall to the High Court, not the Environment and Land Court
Court orders
#- 1.The matter is transferred to the High Court
- 2.Orders accordingly
- Jurisdiction invoked
- Article 162 of the Constitution (jurisdiction of the Environment and Land Court); question whether a charge dispute falls within the Court's jurisdiction
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Tachasis Wholesalers Co. Limited v National Bank of Kenya Ltd [2018] KEELC 1046 (KLR)", Case Analysis (2018). Eldoret E & L Case No. 65 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/1046/eng@2018-10-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.