Equatorial Land Holdings Limited & another v Cheseret Arap Korir [2019] KEELC 2049 (KLR)
The bottom line
#A Kenyan High Court confirmed that court orders protecting land pending arbitration automatically end once the arbitrator issues a final award.
What this practically means
#Executive summary
#Key legal issues
#Whether interlocutory orders pending arbitration survive the arbitral award
The orders lapse once the award is made
The court had issued interlocutory restraining orders solely to preserve the status quo pending the outcome of the arbitration. Since the purpose of the orders was tied to the pendency of the arbitral proceedings, the making of the award on 30th April 2019 exhausted their purpose. The court held it could not force the parties to agree on rent, an issue left open by the arbitrator, and therefore the orders could not be maintained.
Whether discharge of the orders should be conditioned to protect the respondent
A deposit of Kshs. 3,000,000 was ordered as security for rent pending the hearing of a pending application
Although the court found the restraining orders had lapsed, it balanced the respondent's claim that rent remained undetermined and that discharge would enable the applicants to resume operations. In the interest of justice, the discharge was accompanied by a condition that the applicants deposit Kshs. 3,000,000 in a joint interest-earning fixed account as security for rent pending determination of the application dated 6th May 2019.
Legal principles established
#- Interlocutory restraining orders issued pending arbitration lapse upon the making of the arbitral award
Court orders
#- 1.The interlocutory orders issued on 1st March 2019 restraining the plaintiffs from carrying on any activity on the suit parcels of land are discharged as the arbitral award has already been made
- 2.The applicants to deposit Kshs. 3,000,000 in a joint interest earning fixed account to be opened within 14 days in the names of the advocates on record at the Kenya Commercial Bank, Eldoret branch as security for rent, pending the hearing of the application dated 6th May 2019
- 3.Costs of the application to the applicant
- Jurisdiction invoked
- Inherent powers of the High Court to regulate its interlocutory orders pending arbitration (not expressly cited in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Equatorial Land Holdings Limited & another v Cheseret Arap Korir [2019] KEELC 2049 (KLR)", Case Analysis (2019). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/2049/eng@2019-07-23
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.