Peter Nugi Ng’ang’a v National Industrial Credit (Nic) Bank Ltd & 4 others [2019] KEELC 3899 (KLR)
The bottom line
#Kenya's Land Court in Kitale ruled it cannot hear disputes challenging the legality of a bank charge over land, transferring the case to the High Court.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the Environment and Land Court has jurisdiction to determine a suit concerning the legality of a charge and its enforceability by way of forced sale
Key legal issues
#Jurisdiction of the ELC over disputes on the legality of a charge
The suit, being a challenge to the legality and enforceability of a charge, is outside the ELC's jurisdiction and was transferred to the High Court on the strength of the Court of Appeal's decision in Co-operative Bank of Kenya Ltd v Patrick Kangethe Njuguna.
The court perused the application and the responses of the 1st, 2nd and 5th defendants and characterised the dispute as one concerning the legality of a charge rather than a land dispute within Article 162(2) jurisdiction. Relying on the Court of Appeal decision in Co-operative Bank of Kenya Limited v Patrick Kangethe Njuguna, it concluded that the proper forum is the High Court and directed transfer.
Legal principles established
#- A suit concerning the legality of a charge and its enforcement does not fall within the jurisdiction of the Environment and Land Court and must be tried by the High Court, following Co-operative Bank of Kenya Ltd v Patrick Kangethe Njuguna
Court orders
#- 1.The suit be transferred to the High Court for hearing and final determination
- 2.The Deputy Registrar shall within 7 days, with notice to the parties and having regard to the Presiding Judge's diary, place the file before him for a mention for directions as to hearing of the application and the suit
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Order 1A, 1B and 63(e) of the Civil Procedure Act, Order 40 rules 1, 2 and 4(1) and Order 50 Rule 1 of the Civil Procedure Rules, Article 159 of the Constitution
Relief refused
#Confirmation of interim orders pending hearing and determination of the suit
The court instead transferred the entire suit to the High Court, having found it concerns the legality of a charge over which the ELC lacks jurisdiction
Costs
No costs order made
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
On the basis of the Court of Appeal decision in Civil Appeal No. 83 of 2016 between Co-operative Bank of Kenya Limited and Patrick Kangethe Njuguna I hereby order that this suit be transferred to the High Court for hearing and final determination.
The Deputy Registrar shall within 7 days with notice to the parties and having regard to the Presiding Judge's diary place the file before him for a mention for directions as to hearing of the application and the suit.
Having perused through the application and the responses thereto, I find that this is a matter concerning the legality of a charge.
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Peter Nugi Ng’ang’a v National Industrial Credit (Nic) Bank Ltd & 4 others [2019] KEELC 3899 (KLR)", Case Analysis (2019). Land Case No. 119 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/3899/eng@2019-03-28
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.