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ELCDismissedNairobi CMCCC No E4010 of 2020 (appeal against ruling of 10/9/2020)· [2021] KEELC 4002 (KLR)

Imed Healthcare Limited v Kenya Reinsurance Corporation Limited [2021] KEELC 4002 (KLR)

Environment and Land Court
10 March 2021
3,402 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~14 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court dismissed an appeal, confirming magistrates' courts cannot handle rent tribunal disputes reserved for the Environment and Land Court.

What this practically means

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Executive summary

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The appellant, Imed Healthcare Limited, had its BPRT reference (Nairobi BPRT Case No 169 of 2019) struck out on 28/5/2020 after the Tribunal upheld a preliminary objection that a formal six-year lease placed the dispute outside its jurisdiction. In August 2020 the appellant sued the respondent in the Chief Magistrate's Court at Milimani (CMCCC No E4010 of 2020) seeking an injunction restraining eviction, distress and termination pending filing of a fresh reference at the Tribunal. The respondent raised a preliminary objection on res judicata (Section 7 of the Civil Procedure Act), which Hon Kagoni (PM) upheld on 10/9/2020, striking out the suit on the reasoning that the Tribunal, having found no jurisdiction, had become functus officio. On appeal to the Environment and Land Court, B M Eboso J framed the key issue as whether the Magistrate's Court had jurisdiction over the suit. The court held the suit was a blatant abuse of process: the appellant sought interim protection pending proceedings before a Tribunal that had already declined jurisdiction, and that finding had not been set aside. The Magistrate's Court lacked jurisdiction over such disputes, and only the Environment and Land Court has unlimited original jurisdiction over Tribunal-reserved matters (Section 13, Environment and Land Court Act). The court also held the Magistrate was right to strike out the suit despite the objection not expressly seeking striking out, as laying down tools is effected through striking out. Independently, the suit had been overtaken by events: the Tribunal was operational again and the lease term had lapsed. The appeal was dismissed with each party bearing its own costs.

Key legal issues

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01

Jurisdiction of the Magistrate Court to grant interim measures of protection pending a BPRT reference

Holding

The Magistrate Court had no jurisdiction; the suit was a blatant abuse of process since the BPRT had already ruled the dispute outside its jurisdiction and that finding had not been set aside

Reasoning

The appellant's suit sought interim protection only pending a reference at the Tribunal. The Tribunal had on 28/5/2020 held the dispute outside its jurisdiction, and no material showed that ruling set aside. Inviting the Magistrate's Court to grant interim relief to return to a forum that had declined jurisdiction was abusive. The only court with unlimited original jurisdiction over Tribunal-reserved disputes is the Environment and Land Court, under Section 13 of the Environment and Land Court Act.

p. 4
02

Whether striking out the suit was proper absent a specific prayer for striking out

Holding

Yes; once the Magistrate found lack of jurisdiction he was obligated to lay down his tools, which is done through striking out the suit regardless of the terms of the preliminary objection

Reasoning

The appellant argued the preliminary objection targeted only the application, not the whole suit. The court held that a finding of no jurisdiction compels the court to down tools, and striking out is the mechanism for doing so, whether or not the objection expressly sought striking out of the entire suit. No basis existed to fault the Magistrate on this account.

p. 4
03

Res judicata under Section 7 of the Civil Procedure Act

Holding

The doctrine, anchored in Section 7, bars re-litigation of matters heard and finally decided by a competent court; the rationale is finality, economic use of court resources and stability of judgments

Reasoning

The court outlined the doctrine as jurisdictional, citing John Florence Maritime Services and Henderson v Henderson on bringing forward the whole case, and the rationale that litigation must end. The Magistrate's res judicata finding was not expressly disturbed; the dismissal rested on jurisdiction and the suit having been overtaken by events.

p. 3
04

Mootness of the substantive suit

Holding

The suit had been overtaken by events: the Tribunal was operational again and the lease term had lapsed on 31/8/2020

Reasoning

The court observed that the need for interim protection pending resumption of Tribunal sittings no longer existed and the six-year lease had expired. This independently disposed of the appeal seeking reinstatement of the suit.

p. 3

Legal principles established

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  • Jurisdiction is conferred only by the Constitution or legislation; a court cannot arrogate to itself jurisdiction exceeding that conferred by law
  • Where a court lacks jurisdiction it must lay down its tools, and laying down tools may be effected by striking out the suit even absent a specific prayer for striking out in the preliminary objection
  • Before granting an interim measure of protection pending determination of a dispute elsewhere, a court must satisfy itself that there is a live dispute before a competent adjudicatory body and that it has jurisdiction over the plea for interim relief

Court orders

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  1. 1.The appeal is dismissed
  2. 2.Parties shall bear their respective costs of this appeal and the suit in the Magistrate Court

Authorities

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Legislation

  • Civil Procedure ActSection 7
  • Environment and Land Court ActSection 13

Cases cited (4)

  • John Florence Maritime Services Limited & Ano. v Cabinet Secretary for Transport and Infrastructure & 3 Others
    (2015) e KLR
  • Henderson v Henderson
    (1843) 67 ER 313
  • Samuel Kamau Macharia v Kenya Kenya Bank Ltd
    [2012] eKLR
  • Owners of Motor Vessel Lillian "S" v Caltex Oil (Kenya) Limited
On appeal from
Chief Magistrate's Court at Milimani
Nairobi CMCCC No E4010 of 2020
Jurisdiction invoked
Appellate supervisory jurisdiction of the Environment and Land Court over matters reserved for the Business Premises Rent Tribunal; Section 13 of the Environment and Land Court Act invoked as conferring unlimited original jurisdiction over such disputes

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Imed Healthcare Limited v Kenya Reinsurance Corporation Limited [2021] KEELC 4002 (KLR)", Case Analysis (2021). Nairobi CMCCC No E4010 of 2020 (appeal against ruling of 10/9/2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/4002/eng@2021-03-10

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