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ELCAllowedNotice of Motion dated 14/3/2019· [2019] KEELC 386 (KLR)

Artique Limited v Davita Management Ltd & 3 others [2019] KEELC 386 (KLR)

Environment and Land Court
26 September 2019
1,633 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 Nairobi court stopped a landlord's agents from cutting power and blocking a buyer's construction, showing property buyers can get quick protection from interference.

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 (E.O. Obaga, J) on a Notice of Motion dated 14 March 2019 in which the plaintiff, purchaser of Hall No.1E on the 6th floor of Nexgen Commercial Centre on LR 209/1848, Mombasa Road, together with a 1500ft rooftop space (the suit premises), sought temporary injunctions restraining the defendants, including the managing agent, from disconnecting electricity supply to its premises and from interfering with its access, construction and quiet possession of the premises pending trial. Construction of a mezzanine floor had been approved, but the respondents switched off power, lodged protest letters with the County Government, NEMA and the National Construction Authority, and welded shut the door to the rooftop premises, contending the space was common to all occupiers and that approvals cited a wrong parcel number. The court framed a single issue: whether the applicant had demonstrated a prima facie case. Applying Mrao Ltd v First American Bank and Nguruman Limited, and after a site visit on 27 June 2019, the court held the applicant had established a prima facie case since the disputed space formed part of its purchase, that it would suffer substantial loss including a contractual penalty of about five million shillings, and that the balance of convenience favoured the applicant as the agreement vested the disputed space in its control. The court allowed the motion in terms of prayers (c), (e) and (f), granting both injunctions and costs, and directed the applicant to file an undertaking as to damages within fourteen days. Whether the space was lawfully sold or common property was left for the main hearing.

Key legal issues

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01

Whether the applicant established a prima facie case warranting a temporary injunction

Holding

Yes, the applicant established a prima facie case; the disputed rooftop space was part of what the applicant purchased, and whether it was a common space is left for the main hearing

Reasoning

Guided by Mrao Ltd v First American Bank and Nguruman Limited, and after a site visit on 27/6/2019, the court found the applicant had an apparent right over the suit premises included in its purchase. Whether the sale was valid or the space common was a matter for trial. The applicant also stood to suffer substantial loss, including a penalty of about five million shillings under its contract with Steelers Limited, and the balance of convenience favoured the applicant since the agreement vested the disputed space in its control.

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02

Whether balance of convenience favoured grant of the injunction

Holding

Yes; the agreement vested the disputed space in the control of the applicant

Reasoning

The court considered the contractual penalty of about five million shillings already suffered against the purchase price of approximately Kshs 18,000,000, finding the applicant would suffer substantial loss if construction continued to be disrupted. On balance of convenience, the agreement vested control of the disputed space in the applicant, making this a proper case for an injunction.

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Legal principles established

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  • A prima facie case is one in which, on the material presented, a tribunal properly directing itself will conclude that there exists a right which has apparently been infringed so as to call for an explanation or rebuttal from the opposite party
  • In considering a prima facie case for injunction, the court does not examine the merits closely; it need only see that the applicant has a right which has been or is threatened with violation

Court orders

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  1. 1.Temporary injunction restraining the defendants, their servants and/or agents from disconnecting or interfering with electricity power supply to the plaintiff's premises (Hall No.1E, 6th floor, Nexgen Commercial Centre, LR 209/1848, Mombasa Road, Nairobi) pending hearing and determination of the suit
  2. 2.Temporary injunction restraining the defendants from interfering with the plaintiff's access, construction and/or development of the said premises and from interfering with the plaintiff's quiet possession and enjoyment of the premises pending hearing and determination of the suit
  3. 3.Defendants to pay costs of the application
  4. 4.Applicant to file a suitable undertaking as to damages in court within 14 days

Authorities

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Cases cited (2)

  • Mrao Ltd Vs First American Bank of Kenya & 2 Others
    (2003) KLR 125
  • Nguruman Limited Vs Jan Bonde Nelson & 2 others
    Civil Appeal No 77 of 2012
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over the dispute relating to land (suit premises on LR No. 209/1848, Mombasa Road, Nairobi)

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, "Artique Limited v Davita Management Ltd & 3 others [2019] KEELC 386 (KLR)", Case Analysis (2019). Notice of Motion dated 14/3/2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/386/eng@2019-09-26

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