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ELCDismissedNot stated in the judgment· [2018] KEELC 1060 (KLR)

Kenya Medical Association Housing Cooperative Society Limited v Arthi Highway Developers Ltd & another [2018] KEELC 1060 (KLR)

Environment and Land Court
4 October 2018
857 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court confirmed it can decide how much indemnity is owed under Section 83 of the Land Registration Act, dismissing attempts to block such claims.

What this practically means

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Executive summary

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This is a ruling by the Environment and Land Court at Nairobi (Obaga, J) on a preliminary objection dated 24th July 2017 filed by the first defendant, contending that the court lacked jurisdiction over the plaintiff's money claim of Kshs.1,087,197,920.84 and that the suit was an abuse of court process. The objection was disposed of by written submissions; the first defendant filed submissions but the plaintiff did not. The court framed two issues: jurisdiction and abuse of process. On jurisdiction, the court traced the background: West End Butchery Limited, registered owner of land in Mavoko, Machakos County, had its land fraudulently subdivided and sold by fraudsters who created a parallel company. In Nairobi ELC 167 of 2007, Justice Nyamweya found the present plaintiff entitled to indemnity from the two defendants. Relying on Section 83 of the Land Registration Act, which governs recovery of indemnity payments and defines 'court' as the Environment and Land Court, the court held it has jurisdiction to determine the amount of indemnity. On abuse of process, adopting the definition in Bullen, Leake and Jacob's Precedents of Pleadings, the court held that the plaintiff, whose entitlement to indemnity had been affirmed on appeal (the Court of Appeal having dismissed the appeal), was perfectly entitled to pursue the indemnity. The preliminary objection was found baseless, overruled, with costs to the plaintiff.

Key legal issues

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01

Whether the Environment and Land Court has jurisdiction over the plaintiff's money claim for indemnity

Holding

The court has jurisdiction because the claim arises under Section 83 of the Land Registration Act, which defines the competent court as the Environment and Land Court.

Reasoning

The plaintiff's claim is not a bare money claim: it seeks indemnity pursuant to a judgment in Nairobi ELC 167 of 2007, where Justice Nyamweya found the plaintiff entitled to indemnity from the two defendants. Section 83 of the Land Registration Act governs recovery of indemnity funds, and the Act defines 'court' as the Environment and Land Court established under the Environment and Land Court Act 2011. The suit therefore falls squarely within the court's jurisdiction.

p. 1
02

Whether the suit is an abuse of the process of the court

Holding

The suit is not an abuse of process; the plaintiff is properly pursuing indemnity to which it was found entitled, and an appeal against that judgment was dismissed.

Reasoning

Adopting the definition in Bullen, Leake and Jacob's Precedents of Pleadings, the court reasoned that abuse of process involves misuse of the court's machinery for vexation or oppression. Here the plaintiff pursues indemnity already granted by Justice Nyamweya and affirmed on appeal by the Court of Appeal. The claim is therefore honest, in good faith, and a legitimate continuation of the earlier suit; the preliminary objection is baseless.

p. 2

Legal principles established

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  • The Environment and Land Court has jurisdiction over claims for indemnity under Section 83 of the Land Registration Act, since the Act defines 'court' as the Environment and Land Court established under the Environment and Land Court Act 2011.
  • A party found entitled to indemnity by a court judgment is properly pursuing that indemnity, and such a suit is not an abuse of the process of the court.

Court orders

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  1. 1.The preliminary objection by the first defendant is overruled with costs to the plaintiff

Authorities

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Legislation

  • Environment and Land Court ActNot specified
  • Land Registration ActSection 83

Cases cited (1)

  • Nairobi ELC 167 of 2007 (West End Butchery Limited suit)
Jurisdiction invoked
Environment and Land Court Act, 2011; Land Registration Act (definition of 'court' and Section 83 indemnity provisions)

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, "Kenya Medical Association Housing Cooperative Society Limited v Arthi Highway Developers Ltd & another [2018] KEELC 1060 (KLR)", Case Analysis (2018). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/1060/eng@2018-10-04

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