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ELCDismissedNairobi ELC Civil Suit (Notice of Motion dated 15/5/2018)· [2019] KEELC 2376 (KLR)

Mary Makoffu & another v Canuck Holdings Limited & 4 others [2019] KEELC 2376 (KLR)

Environment and Land Court
17 July 2019
2,952 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan land buyer lost an urgent bid to undo a court-ordered sale because the Land Court cannot review High Court orders.

What this practically means

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Executive summary

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The plaintiffs, mother and son, sued over Flat Number 3 Block C on L.R. Lavington, Nairobi, which the 1st plaintiff bought from the 1st defendant in 2009 for Kshs 7,000,000. Registration of the lease was blocked by a prohibitory order in Nairobi HCCC 524 of 2009, in which the 2nd defendant enforced an arbitral award against the 1st defendant. The parties to that suit later compromised it through a consent order sanctioning a public auction; the property was auctioned on 16/4/2018, sold to the 3rd defendant, vested in her by an order of Sewe J, and the 2nd plaintiff was evicted in May 2018. By a notice of motion dated 15/5/2018, the plaintiffs sought a temporary injunction, stay and setting aside of the consent order, eviction of the purchasers, reinstatement of occupation, return of seized goods and related orders. The court framed three issues. First, holding on the strength of Republic v Karisa Chengo that the ELC and the High Court are distinct superior courts of equal status, it found that it lacked jurisdiction to review or stay the High Court's orders, which must be sought in the High Court itself or after transfer of that suit. Second, applying Locabi International Finance Limited v Agro-Export, it held that the mandatory orders sought (eviction and reinstatement) failed because the consent and vesting orders subsisted and no clear case or special circumstances existed. Third, applying the Giella v Cassman Brown criteria, it found no prima facie case against the 3rd defendant as registered proprietor and held damages would adequately compensate the plaintiffs. The motion was declined in its entirety, with costs in the cause, the court noting the 1st defendant's probable role in creating the dispute. The main suit remains for trial.

Key legal issues

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01

Jurisdiction to review High Court orders

Holding

The ELC lacks jurisdiction to stay, set aside or review orders made by the High Court in HCCC 524 of 2009; the proper forum is the High Court itself, or the suit should be transferred first

Reasoning

Relying on Republic v Karisa Chengo, the court held that the High Court and ELC are distinct third-tier superior courts of equal status with distinct jurisdiction. The ELC exercises no supervisory or appellate power over the High Court, so review or stay of the impugned consent order must be pursued in the court that issued it, or after a formal transfer of that suit to the ELC.

p. 3
02

Mandatory injunction

Holding

Mandatory injunctive relief was refused because the consent order sanctioning the sale and the vesting order in favour of the 3rd defendant subsist and have not been set aside

Reasoning

Applying Locabi International Finance Limited v Agro-Export, the court required special circumstances and a clear case with a high sense of assurance. Since the consent order and the vesting order issued by Sewe J remained in force, the plaintiffs could not meet the higher threshold for mandatory interlocutory relief.

p. 3
03

Prohibitory injunction

Holding

The Giella v Cassman Brown criteria were not satisfied: no prima facie case against the registered purchaser, and damages would adequately compensate the plaintiffs

Reasoning

The auction occurred pursuant to the impugned consent order and the property was vested in the 3rd defendant under a subsisting court order, so the plaintiffs lacked a prima facie case against the current registered proprietor. Further, the 1st plaintiff's loss was quantifiable and the 2nd plaintiff had quantified his eviction loss, making damages an adequate remedy.

p. 4

Legal principles established

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  • The Environment and Land Court, the High Court and the Employment and Labour Relations Court are distinct superior courts of equal status, and the ELC exercises neither review nor appellate jurisdiction over High Court orders; review must be sought in the court that made the order
  • A mandatory injunction will not be granted on an interlocutory application absent special circumstances and a clear case, on a higher standard than for a prohibitory injunction

Court orders

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  1. 1.The plaintiffs' notice of motion dated 15/5/2018 is declined
  2. 2.Costs of the application are in the cause and will await disposal of the main suit

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 162(2)(b)
  • Environment and Land Court ActSection 13(1)

Cases cited (8)

  • S P Chengalvaraya Naidu v Jagannath
    (199) AIR 853
  • Badami (D) Tr. Her LR v Bhali
    Supreme Court of India Civil Appeal No 1723 of 2008
  • Giella v Cassman Brown
    (1973) EA 358
  • David Ngugi Ngaari v Kenya Commercial Bank Limited
    (2015) eKLR
  • Kisimani Holdings Limited & another v Fidelity Bank Limited
    (2013) eKLR
  • Joseph Ndirangu Waweru t/a Mooreland Mercantile Co & another v City Council of Nairobi
    (2015) eKLR
  • Republic v Karisa Chengo & 2 others
    (2017) eKLR
  • Locabi International Finance Limited v Agro-Export and Another
    (1986) All ER 901
Jurisdiction invoked
Article 162(2)(b) of the Constitution and Section 13(1) of the Environment and Land Court Act

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, "Mary Makoffu & another v Canuck Holdings Limited & 4 others [2019] KEELC 2376 (KLR)", Case Analysis (2019). Nairobi ELC Civil Suit (Notice of Motion dated 15/5/2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/2376/eng@2019-07-17

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