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ELCDismissedNot stated in the judgment· [2020] KEELC 1492 (KLR)

Jagjit Singh Pandhaal v Hussein Mohamed Gulamhussein Verjee [2020] KEELC 1492 (KLR)

Environment and Land Court
22 July 2020
983 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court refused both sides' pre-trial demands: property couldn't be attached, no judgment was entered, and foreign residency alone doesn't justify ordering security for costs.

What this practically means

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Executive summary

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This consolidated ruling of the Environment and Land Court at Mombasa (Munyao Sila, J) determined two interlocutory applications in a suit in which the plaintiff, residing in Malaga, Spain, claimed that the defendant, acting under a registered special power of attorney, sold two Mombasa land parcels for KShs. 10 million and KShs. 9.5 million respectively, received the purchase price, and failed to remit it; judgment of KShs. 19,500,000 with interest is sought. By an application dated 30 September 2019, the plaintiff sought attachment before judgment of five motor-vehicles alleged to belong to the defendant, or in the alternative a deposit of KShs. 10 million, plus judgment on admission. The defendant denied the claim, asserting he had remitted monies far in excess of the purchase price and had settled all indebtedness, and by an application dated 31 October 2019 sought security for costs of KShs. 20 million on the ground that the plaintiff is a British citizen residing in Spain. The court declined both applications. It found that the five listed motor-vehicles belong to other persons and cannot be attached, that the suit is undetermined, and that it was not shown the defendant's whereabouts are unknown since he resides in Kenya. It also held that costs on a KShs. 19,500,000 claim cannot amount to KShs. 20 million, and that foreign citizenship and residence alone cannot justify security for costs, given that each party knows the other's abode and can execute any judgment. Both applications were dismissed with each party bearing his own costs, and the matter was directed to trial.

Key legal issues

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01

Whether attachment before judgment could issue against the defendant's properties

Holding

The application failed because the listed motor-vehicles do not belong to the defendant and the plaintiff's claim that the defendant is disposing of his properties was not enough

Reasoning

The court observed that the five listed motor-vehicles belong to other persons and cannot be attached. Even independently of that, the suit is undetermined and it was not shown that the defendant's whereabouts are unknown; the defendant resides in Kenya, and a successful plaintiff can execute any judgment through ordinary means.

p. 2
02

Whether judgment on admission should be entered

Holding

No admission sufficient for judgment on admission was established in the pleadings

Reasoning

The plaintiff asserted that the defendant admitted the claim, but the court found no admission in the pleadings warranting entry of judgment on admission; the defence expressly denies the claim, and the alleged acknowledgement of receipt of monies is disputed and a matter for trial.

p. 2
03

Whether the plaintiff should furnish security for costs of KShs. 20 million

Holding

The application failed: the sum demanded exceeded the entire claim, and foreign residence alone does not justify security for costs

Reasoning

The defendant sought security on the basis that the plaintiff is a British citizen living in Spain. The court held that costs for a KShs. 19,500,000 claim cannot be KShs. 20 million, and that the parties, who know each other well and each other's whereabouts, can execute judgments against each other, including for costs.

p. 2

Legal principles established

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  • Attachment before judgment requires more than a claim that the defendant is disposing of property; it cannot issue where the defendant's whereabouts are known and the suit is undetermined
  • The mere fact that a party is a foreign citizen residing abroad does not by itself justify an order for security for costs

Court orders

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  1. 1.The plaintiff's application dated 30 September 2019 is dismissed
  2. 2.The defendant's application dated 31 October 2019 is dismissed
  3. 3.Each party will bear his own costs
  4. 4.The parties to prepare their case for trial and have the matter heard
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over a dispute concerning land parcels in Mombasa

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, "Jagjit Singh Pandhaal v Hussein Mohamed Gulamhussein Verjee [2020] KEELC 1492 (KLR)", Case Analysis (2020). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/1492/eng@2020-07-22

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