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ELCAllowedJudicial Review Motion dated 22nd January 2019 (Mombasa)· [2019] KEELC 1003 (KLR)

Republic v Inspector General of Police National Police Service & 2 others Ex-Parte National Bank of Kenya Limited [2019] KEELC 1003 (KLR)

High Court of Kenya, Judicial Review Division
29 October 2019
5,552 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~22 min to read original · ~4 min brief

The bottom line

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The High Court in Mombasa quashed police-ordered restrictions on the bank's charged properties because no notice or hearing was given beforehand.

What this practically means

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Executive summary

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The National Bank of Kenya, as chargee over numerous properties offered as securities for loans, sought certiorari to quash a letter dated 21st April 2017 by the DCI/Banking Fraud Investigations Department directing the Chief Lands Registrar, Mombasa to place restrictions over the suit properties, and the consequential restrictions placed by the Registrar. The bank contended it was given no notice or hearing, contrary to Sections 76 and 77 of the Land Registration Act, the Fair Administrative Action Act and natural justice, and that the investigations had concluded with the arraignment of accused persons in Mombasa Criminal Case No. 220 of 2017, which did not concern the bank's securities. The respondents opposed by grounds of opposition only, arguing the restriction preserved the estate of the late Tahir Sheikh Said pending investigations and that quashing it would frustrate police work. The court held that the restriction was administrative action affecting the bank's protected property rights under Article 40, that grounds of opposition raise only questions of law so the bank's unchallenged sworn averments stood as fact, and that the respondents had breached the mandatory procedure in Sections 76 and 77, Articles 47 and 50, and sections 4(3) and 4(4) of the Fair Administrative Action Act. The decision was tainted with procedural irregularity and violated natural justice. The motion dated 22nd January 2019 was allowed in its entirety, with each party bearing their own costs.

Key legal issues

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01

Procedural fairness in placing restrictions over charged land

Holding

The respondents failed to follow Sections 76 and 77 of the Land Registration Act and denied the applicant a hearing, rendering the decision procedurally irregular and unlawful

Reasoning

The restriction over the suit properties was administrative action adversely affecting the bank's proprietary rights as chargee. The Registrar was obliged to direct inquiries, serve notices, and hear affected persons, and to give written notice to the proprietor. No notice or hearing was given. The decision violated Article 40, Article 47, and sections 4(3) and 4(4) of the Fair Administrative Action Act, and breached natural justice, and cannot stand.

p. 6
02

Evidentiary weight of unchallenged sworn averments against grounds of opposition

Holding

Facts deposed on oath and not rebutted by a replying affidavit are taken as true; grounds of opposition raise only issues of law

Reasoning

The respondents opposed only by grounds of opposition and filed no sworn answer. Relying on Kennedy Otieno Odiyo and Kenya Akiba Micro Financing, the court held that grounds of opposition address only questions of law and unchallenged affidavit evidence stands as fact. Thus the bank's averments, including that investigations had concluded, remained uncontroverted.

p. 6

Legal principles established

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  • A chargee is a person entitled to inquiries, notices and a hearing under Section 76(1) of the Land Registration Act before a restriction is placed over charged property
  • A decision made in breach of the rules of natural justice is null and void notwithstanding that the same result might otherwise have been reached

Court orders

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  1. 1.An order of certiorari issued to remove into the court and quash the decision and orders of the 1st and 2nd Respondents contained in the letter dated 21st April 2017 directing that a restriction be placed over the listed properties
  2. 2.An order of certiorari issued to quash the consequential decisions and orders of the Chief Lands Registrar – Mombasa implementing the directive in the letter dated 21st April 2017
  3. 3.Each party to bear their own costs of the motion

Authorities

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Legislation

  • Constitution of KenyaArticle 40
  • Constitution of KenyaArticle 47
  • Constitution of KenyaArticle 50(1)
  • Land Registration ActSections 76, 77(1)
  • Fair Administrative Action ActSection 4

Cases cited (9)

  • Republic –v- National Land Commission Ex-parte Satellite Industrial Supplies Limited
    (2018) eKLR
  • Kennedy Otieno Odiyo & 12 Others –v- Kenya Electricity Generating Company Limited
    (2010) eKLR
  • Ezekiel Misango Mutisya –v- National Land Commission & 6 Others
    (2014) eKLR
  • Itrade Company Limited –v- Jane Mukami Mwangi & Another
    (2015) eKLR
  • Kenya Akiba Micro Financing Limited –v- Ezekiel Chebii & 14 Others
    (2012) eKLR
  • Civil Service Union –v- Minister for Civil Service
    (1985) AC 374
  • Onyango Oloo –v- Attorney General
    (1989) EA
  • Juja Coffee Exporters Limited –v- National Bank of Kenya Limited
    Mombasa HCCC No. 69 of 2017
  • Juja Coffee Exporters Limited –v- National Bank of Kenya Limited
    Malindi ELC No. 90 of 2017
Jurisdiction invoked
Judicial review jurisdiction over administrative action, Article 47 of the Constitution and the Fair Administrative Action Act (leave granted 2nd January 2019)

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, "Republic v Inspector General of Police National Police Service & 2 others Ex-Parte National Bank of Kenya Limited [2019] KEELC 1003 (KLR)", Case Analysis (2019). Judicial Review Motion dated 22nd January 2019 (Mombasa). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/1003/eng@2019-10-29

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