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ELCPartially AllowedNakuru ELC Case Number 268 of 2017· [2021] KEELC 1766 (KLR)

South Knight Limited v I and M Bank Limited & another [2021] KEELC 1766 (KLR)

Environment and Land Court
30 September 2021
1,731 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan court merged three land disputes over one property into a single case, but refused to touch a separate succession matter.

What this practically means

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Executive summary

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By Notice of Motion dated 19th November 2020, the 1st and 2nd defendants in Nakuru ELC Case No. 268 of 2017 sought consolidation of that suit with Nakuru ELC Case No. 42A of 2017, Nakuru ELC Case No. 98 of 2017 and Nairobi High Court Succession Cause No. 202 of 2016, and that ELC 268 of 2017 be the test suit. All suits concerned land parcel Nakuru Municipality Block 3/427. The plaintiff supported consolidation with ELC 42A of 2017 but opposed consolidation with ELC 98 of 2017 (fearing confusion from numerous transactions) and with the succession cause. Susan Njeri Kamau supported consolidation but sought that her suit, ELC 98 of 2017, be the lead file. Relying on the Nyati Security Guards criteria and the Supreme Court's decision in Law Society of Kenya, the court found that common questions of law and fact arose in the three ELC suits and that the reliefs arose out of the same transaction concerning the exercise of the chargee's statutory power of sale, and granted consolidation of the three ELC suits. It rejected the fear-of-confusion objection, noting the trial court would sift through the facts. Because validity of both title and charge was challenged in ELC 98 of 2017, the court designated it the lead file. Consolidation with the succession cause was refused: the ELC's jurisdiction under Article 162 of the Constitution and Section 13 of the Environment and Land Court Act does not extend to succession, and the succession cause had been found incompetent, hence a nullity ab initio not transferable. Costs of the application were placed in the cause.

Key legal issues

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01

Whether the three ELC suits should be consolidated

Holding

Consolidation granted as they raise common questions of law and fact and arise out of the same transaction concerning land parcel Nakuru Municipality Block 3/427

Reasoning

The court found the parties, subject property and reliefs revolving around the chargee's exercise of statutory power of sale were common across the three ELC suits. It rejected the argument that numerous and potentially confusing transactions in ELC 98 of 2017 should preclude consolidation, holding the trial court can sift through the facts. The Supreme Court's criteria in Law Society of Kenya were applied.

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02

Which suit should be the lead file

Holding

ELC Case No. 98 of 2017 designated the lead file

Reasoning

Because the validity of both the title and the charge document is challenged in ELC 98 of 2017, a determination on that issue would have ramifications on the other suits, making it appropriate for good order that it lead.

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03

Whether the Succession Cause could be consolidated

Holding

Refused; the ELC has no jurisdiction over succession matters

Reasoning

Under Article 162 of the Constitution and Section 13 of the Environment and Land Court Act, the court's jurisdiction covers environment and land matters but does not extend to intestate or testamentary succession. Further, the succession cause had been found incompetent by Muchelule J, rendering it a nullity ab initio incapable of transfer to another court.

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Legal principles established

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  • Consolidation is appropriate where suits pending in the same court raise common questions of law or fact, arise out of the same transaction, or where it is otherwise desirable
  • Consolidation must facilitate efficient, expeditious and fair disposal and must not occasion injustice to any party
  • A court without jurisdiction cannot receive a matter transferred to it; an incompetent filing is a nullity ab initio and not transferable

Court orders

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  1. 1.Nakuru ELC Case Number 268 of 2017 consolidated with Nakuru ELC Case Number 42A of 2017 and Nakuru ELC Case Number 98 of 2017
  2. 2.Nakuru ELC Case Number 98 of 2017 shall be the lead file
  3. 3.Costs of Notice of Motion dated 19th November 2020 shall be in the cause
Jurisdiction invoked
Article 162 of the Constitution and Section 13 of the Environment and Land Court Act, 2011

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, "South Knight Limited v I and M Bank Limited & another [2021] KEELC 1766 (KLR)", Case Analysis (2021). Nakuru ELC Case Number 268 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/1766/eng@2021-09-30

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