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ELCPartially AllowedNot stated in the extract (plaint filed 4 June 2015, Environment & Land Court, Nakuru)· [2018] KEELC 4726 (KLR)

Apostle Njuguna Waweru & 2 others v Paul Kariuki Mwangi & 2 others [2018] KEELC 4726 (KLR)

Environment and Land Court of Kenya
24 January 2018
1,834 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan land court ruled that a buyer cannot stay on a property rent-free while withholding payment just because a case is pending.

What this practically means

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Executive summary

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This was a ruling of the Environment and Land Court at Nakuru on a notice of motion dated 13 October 2017 by the 1st defendant, brought under Section 3A of the Civil Procedure Act and Order 50 Rule 1 of the Civil Procedure Rules, seeking an order that the plaintiffs/respondents deposit accrued rent of Kshs. 1,190,000/= plus monthly rent of Kshs. 17,500/= pending trial, and in default leave to levy distress. The suit arose from a sale agreement of 21 January 2012 under which the plaintiffs' organization agreed to buy the suit property for Kshs. 4,500,000/= payable in nine months, paid only Kshs. 600,000/=, and remained in occupation while rent stood suspended from 10 February 2012. The respondents opposed, arguing that the application would decide at interlocutory stage an issue reserved for trial, that payment of the balance was to follow a joint valuation, and that status quo orders were in place. The court held that Section 3A covers situations where inherent powers are needed to meet the ends of justice or prevent abuse of process; that prima facie the sale agreement stood repudiated for non-payment within nine months; and that the respondents were abusing the status quo order to occupy rent-free while withholding the purchase price. The court ordered the respondents, within 60 days, to deposit the balance of the purchase price of Kshs. 3,900,000/=, or alternatively accrued rent from January 2012 at Kshs. 17,500/= monthly less Kshs. 600,000/=, plus ongoing monthly deposits of Kshs. 17,500/=; in default, to vacate within 60 days and litigate from outside the premises. Costs of the application were awarded to the 1st defendant/applicant.

Key legal issues

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01

Whether the court should, in exercise of its inherent powers under Section 3A of the Civil Procedure Act, order the respondents to deposit accrued rent and the balance of the purchase price pending trial

Holding

Yes. The respondents were in occupation without paying rent and without paying the balance of the purchase price; the ends of justice required that they either deposit the purchase price balance or accrued rent, or vacate the premises.

Reasoning

The court found a sale agreement of 21 January 2012 for Kshs. 4,500,000/= payable within 9 months, of which only Kshs. 600,000/= was paid, and rent suspended from 10 February 2012 on the assumption the sale would complete. The 9-month period lapsed with no payment of the balance, so prima facie the agreement stood repudiated. Continued occupation rent-free while invoking a status quo order was an abuse giving the respondents an undue advantage; justice required security by way of deposit or vacation.

p. 3
02

Whether allowing the application would amount to deciding the main suit at the interlocutory stage

Holding

No. The court expressly stated it was not deciding the merits of the rent or repudiation questions, which remain for trial.

Reasoning

The respondents argued the rent claim was an issue pending determination and granting it interlocutorily would decide the suit. The court agreed the point could only be decided after the hearing of the main suit but found a prima facie entitlement, making conditional interim deposits appropriate without prejudging the trial.

p. 3

Legal principles established

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  • Section 3A of the Civil Procedure Act is expansive enough to cover any situation where a court's inherent powers are needed to meet the ends of justice or prevent abuse of court process
  • A party may not use pending court proceedings or a status quo order to avoid paying rent or performing its contractual obligations and gain an undue advantage over the opposite party

Court orders

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  1. 1.Pending the hearing and determination of the suit, the plaintiffs/respondents to deposit in court the balance of the purchase price of Kshs. 3,900,000/= within 60 days, or in the alternative, deposit accrued rent calculated from January 2012 at Kshs. 17,500/= per month less the sum of Kshs. 600,000/= within 60 days, and further deposit Kshs. 17,500/= monthly for the duration of the suit
  2. 2.In default of the above, the plaintiffs/respondents to forthwith vacate the suit premises within 60 days and conduct their case while outside the premises
  3. 3.The 1st defendant/applicant shall have the costs of the application

Authorities

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Legislation

  • Civil Procedure Act, Cap 21, Laws of KenyaSection 3A
  • Civil Procedure RulesOrder 50 Rule 1
Jurisdiction invoked
Section 3A of the Civil Procedure Act, Cap 21, Laws of Kenya, and Order 50 Rule 1 of the Civil Procedure Rules (inherent power of the court to make orders necessary for the ends of justice or to prevent abuse of the process of the court)

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, "Apostle Njuguna Waweru & 2 others v Paul Kariuki Mwangi & 2 others [2018] KEELC 4726 (KLR)", Case Analysis (2018). Not stated in the extract (plaint filed 4 June 2015, Environment & Land Court, Nakuru). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/4726/eng@2018-01-24

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