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ELCDismissed· [2018] KEELC 3084 (KLR)

Afyares Enterprises Company Limited v Gideon Kiremah Mugambi & 3 others [2018] KEELC 3084 (KLR)

Environment and Land Court
25 May 2018
1,624 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~6 min to read original · ~4 min brief

The bottom line

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A Nairobi buyer lost his bid to stop a land transfer because he lacked spousal consent and the property was already under a High Court order.

What this practically means

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Executive summary

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This is a ruling of the Environment and Land Court at Nairobi (B M Eboso J) delivered on 25 May 2018 on the plaintiff's notice of motion dated 22 December 2016 seeking an interlocutory injunction restraining the defendants and the interested party from developing, transferring or otherwise dealing with LR Number 36/VII/403 in Eastleigh, Nairobi, pending the hearing of a suit challenging the 2014 sale and transfer of the property to the 2nd defendant. The plaintiff's case was that he contracted to buy the property from the 1st defendant for Kshs 112,000,000 and paid a deposit, but the property was transferred to the 2nd defendant in breach of that agreement. The defendants and the interested party opposed, showing that the property was matrimonial property subject to a 2006 preservatory order in Milimani HCCC No 9 of 2005 (OS), that the 2nd defendant purchased it under a High Court-sanctioned sale, and that the plaintiff's deposit was refunded. The court applied the Giella v Cassman Brown test. It found the plaintiff knew of the encumbrance when contracting, that no spousal consent was obtained so the contract was void under Section 12 of the Matrimonial Property Act 2013, that the 2nd defendant's interest rested on an unvacated High Court order which a court of equal status could not disturb, and that the terminated agreement provided a monetary remedy. The application was dismissed with costs to the plaintiff.

Key legal issues

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01

Whether the plaintiff established the Giella v Cassman Brown criteria for an interlocutory injunction

Holding

The plaintiff failed to satisfy the criteria and the application was dismissed with costs to the plaintiff

Reasoning

The suit property was matrimonial property subject to a subsisting High Court preservatory order when the plaintiff contracted. The agreement acknowledged the encumbrance, no spousal consent was obtained as required under the Matrimonial Property Act, Land Act and Land Registration Act, the agreement was terminated with the deposit refunded, and the 2nd defendant's interest arose from a High Court order. Damages were therefore an adequate remedy and no prima facie case or irreparable injury was shown.

p. 2
02

Whether the Environment and Land Court can vary or vacate orders of the High Court over the same property

Holding

It cannot; courts of equal and concurrent jurisdiction should not issue orders vacating each other's orders

Reasoning

The 1st defendant argued the High Court enjoys concurrent jurisdiction with the EL Court. The court agreed that since the 2nd defendant's interest crystallised pursuant to a High Court order that has not been vacated, it would be irregular for a court of equal status to issue an injunction whose effect would be to vacate that order. The proper forum was the High Court.

p. 2
03

Effect of absence of spousal consent on the sale agreement of matrimonial property

Holding

Without spousal consent, the contract over matrimonial property is void

Reasoning

The suit property was matrimonial property. Section 12 of the Matrimonial Property Act 2013, and until recently Section 93 of the Land Act and Section 28 of the Land Registration Act, required spousal consent. There was no evidence the interested party consented to the plaintiff's agreement with the 1st defendant, so the plaintiff's asserted registrable interest could not stand.

p. 2

Legal principles established

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  • Failure to procure spousal consent renders a contract over matrimonial property void
  • A court of equal status with the High Court cannot issue an order whose effect is to vacate an order of the High Court

Court orders

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  1. 1.The plaintiff's Notice of Motion dated 22/12/2016 is dismissed
  2. 2.The plaintiff shall bear costs of the application

Authorities

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Legislation

  • Matrimonial Property ActSection 12
  • Land ActSection 93
  • Land Registration ActSection 28

Cases cited (1)

  • Giella v Cassman Brown & Co. Ltd
    (1973) EA 358
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over disputes relating to land; the judgment does not cite a specific constitutional or statutory provision

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, "Afyares Enterprises Company Limited v Gideon Kiremah Mugambi & 3 others [2018] KEELC 3084 (KLR)", Case Analysis (2018). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/3084/eng@2018-05-25

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