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ELCPartially AllowedELC Case (Mombasa) – Plaintiff's Application dated 31/1/2018; 2nd Defendant's Application dated 7/2/2018; Plaintiff's Application dated 13/2/2018· [2018] KEELC 3640 (KLR)

Fuji King Motors Limited v Ganjoni Properties Limited & another [2018] KEELC 3640 (KLR)

Environment and Land Court
23 April 2018
6,438 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~26 min to read original · ~4 min brief

The bottom line

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A Mombasa court protected a new tenant's occupation of leased premises, refused jail terms over conflicting court orders, and ordered vehicles removed within five days.

What this practically means

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Executive summary

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This judgment of the Environment and Land Court at Mombasa (C. Yano, J) determined three competing interlocutory applications arising from a dispute over commercial premises known as MOMBASA/BLOCK XX/340 and 350. The plaintiff leased the premises from the 1st defendant on 15th January 2018, shortly after the 2nd defendant — a long-standing tenant — had been evicted following proceedings in Mombasa HCCC No.158 of 2014, in which the 2nd defendant had obtained orders reinstating it to the premises. The plaintiff obtained interim injunctive orders on 1st February 2018 restraining eviction; the 2nd defendant sought to set them aside on grounds of material non-disclosure and illegality of the lease, while the plaintiff sought contempt orders against the 2nd defendant's directors and the OCS, a mandatory injunction to remove nine vehicles the 2nd defendant drove onto Plot 350, and the transfer and consolidation of HCCC No.158 of 2014. The court held that the plaintiff had satisfied the Giella test, found no material non-disclosure, and allowed the interlocutory injunction. It declined the committal orders, holding that the higher standard of proof in contempt was not met because a separate, conflicting High Court order existed. It granted the mandatory injunction on the higher Locabail standard, finding a clear case capable of summary disposition. It refused the transfer/consolidation prayer, holding that the ELC, though of High Court status, has separate and distinct jurisdiction and no power to intrude into a matter pending before the High Court. Each party was ordered to bear its own costs.

Key legal issues

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01

Entitlement to interlocutory injunction

Holding

Plaintiff satisfied the Giella test: prima facie case with probability of success, irreparable damage not quantifiable in damages, and balance of convenience favouring the plaintiff in occupation

Reasoning

The plaintiff had a running lease over both plots entered into when the premises were vacant and was in occupation; the 2nd Defendant had already been evicted. The damage from eviction (loss of customers, inability to relocate hundreds of vehicles) could not be adequately compensated. The court held it fair to maintain the status quo pending trial of the main dispute over entitlement to lease. No material non-disclosure was found against the plaintiff.

p. 6
02

Alleged contempt of the order of 1.2.2018

Holding

Contempt not proved; the existence of a separate conflicting order in HCCC No.158 of 2014 meant the court could not safely find disobedience

Reasoning

The court applied the elevated standard of proof in contempt matters, given their criminal character and potential loss of liberty. Because the 2nd Defendant held a reinstatement order from the High Court that conflicted with this court's injunction, the court could not be satisfied beyond any shadow of a doubt that the directors and OCS wilfully disobeyed the order of 1.2.2018.

p. 6
03

Mandatory injunction to remove vehicles

Holding

Granted on the higher Locabail standard, as a clear case capable of summary decision, since the vehicles were placed on the premises after the restraining orders

Reasoning

The court distinguished the standard for interlocutory mandatory injunctions from the Giella test, requiring special circumstances, clear cases, or a high sense of assurance. Here the vehicles were driven onto Plot 350 after the court had issued restraining orders, and the plaintiff was leased both plots, so the matter could be decided at once in a summary manner.

p. 6
04

Jurisdiction to transfer/consolidate a High Court suit

Holding

Declined; the ELC cannot intrude into a matter pending before the High Court

Reasoning

The ELC is established under Article 162(2)(b) as a superior court with separate and distinct original jurisdictional competence. Despite having the status of a High Court, it lacks supervisory jurisdiction over the High Court, so it cannot call for or transfer a pending High Court file. The plaintiff's transfer/consolidation prayer therefore failed.

p. 6

Legal principles established

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  • The ELC, although of the same status as the High Court, is a separate and distinct superior court with its own jurisdiction and cannot issue orders in respect of a matter pending before the High Court
  • The standard of proof in contempt proceedings is higher than the balance of probabilities but not beyond reasonable doubt

Court orders

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  1. 1.The Notice of Motion dated 31st January, 2018 is allowed in terms of prayers 3 and 4 thereof (interlocutory injunction maintained)
  2. 2.The Notice of Motion dated 7th February, 2018 (to set aside the interim injunction) is dismissed
  3. 3.The Notice of Motion dated 13th February, 2018 is allowed in terms of prayers 4 and 5 to the extent that the 2nd Defendant is to remove its motor vehicles within five (5) days, in default of which the Plaintiff may remove them from the premises
  4. 4.Each party to bear their own costs
Jurisdiction invoked
Article 162(2)(b) of the Constitution of Kenya (Environment and Land Court); orders sought under Sections 1A and 3A of the Civil Procedure Act and Order 40 Rule 1 of the Civil Procedure Rules

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, "Fuji King Motors Limited v Ganjoni Properties Limited & another [2018] KEELC 3640 (KLR)", Case Analysis (2018). ELC Case (Mombasa) – Plaintiff's Application dated 31/1/2018; 2nd Defendant's Application dated 7/2/2018; Plaintiff's Application dated 13/2/2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/3640/eng@2018-04-23

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