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ELCDismissedELC Originating Summons dated 18th June 2021 (Nairobi)· [2022] KEELC 1186 (KLR)

Julius Kipkeny Kolil & another v Kenya Commercial Bank & 3 others [2022] KEELC 1186 (KLR)

Environment and Land Court
15 February 2022
1,520 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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A Kenyan land owner challenging a bank's property sale must sue in the High Court, not the Environment and Land Court, and cannot refile an already-decided case.

What this practically means

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Executive summary

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The Applicants, registered owners of L.R No. 9042/685 Maisonette No. B4, Simba Villas, Embakasi, sued by Originating Summons dated 18th June 2021, alleging that the 1st Respondent advanced them a facility of Ksh 3,910,000.00 secured by a charge over the property, and that the 3rd Respondent purported to auction it on 14th December 2011 without statutory notice. They sought a permanent injunction against eviction or interference, a declaration that the sale to the 2nd Respondent was unlawful, and an order compelling the 4th Respondent to cancel the transfer. The 1st and 2nd Respondents filed preliminary objections contending that the suit was res judicata in view of Nairobi HCCC No. 407 of 2012 (dismissed for want of prosecution on 21st May 2021) and that the ELC lacked jurisdiction over a commercial dispute arising from the exercise of statutory power of sale. Relying on Article 162(2)(b), Section 13 of the ELC Act, the Owners of Motor Vessel 'Lilian S' principle and Mukisa Biscuits, and following the Court of Appeal's decision in Cooperative Bank of Kenya v Njuguna, the court held that the dispute was commercial and belonged to the High Court under Article 165(3). It further held the suit res judicata under Section 7, upheld both objections, dismissed the suit and ordered each party to bear their own costs.

Key legal issues

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01

Whether the ELC has jurisdiction over a dispute arising from the exercise of statutory power of sale

Holding

No; the dispute is commercial in nature and falls within the High Court's jurisdiction under Article 165(3)

Reasoning

The court examined the pleadings and found the suit concerned whether statutory notice for sale was issued and the tabulation of amounts paid. Relying on the Court of Appeal's decision in Cooperative Bank of Kenya v Njuguna, it held that ELC jurisdiction over disputes connected to use of land excludes mortgages, charges, collection of dues and rents, which lie within the High Court's civil jurisdiction. A court lacking jurisdiction must lay down its tools.

p. 2
02

Whether the suit is res judicata in view of Nairobi HCCC No. 407 of 2012

Holding

Yes; the Applicants are barred from filing a similar suit over the same parties and issues

Reasoning

The court set out the five conjunctive elements of res judicata under Section 7. It found that the former suit, Nairobi HCC 407 of 2012 between the same parties over the same issues, had been dismissed by the High Court (for want of prosecution, per the Respondents' submissions), and that the Applicants were therefore barred from re-litigating the same issues in any court.

p. 3
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The proper materials for a preliminary objection

Holding

A preliminary objection is decided on law and pleadings only; the Applicants' replying affidavit is inadmissible and was ignored

Reasoning

Relying on Mukisa Biscuits Manufacturing Co. Ltd v West End Distributors Ltd, the court restated that a preliminary objection is argued on the basis of law and pleadings before court, and that no supporting affidavit or replying affidavit is admissible. The Applicants ought to have filed only written submissions in response.

p. 2

Legal principles established

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  • The ELC's jurisdiction under Article 162(2)(b) does not extend to disputes over mortgages, charges, collection of dues and rents, which fall within the High Court's civil jurisdiction under Article 165(3)
  • A court without jurisdiction must down its tools
  • Res judicata's five essential elements under Section 7 are stipulated in conjunctive terms
  • A preliminary objection is determined on law and pleadings alone; no affidavits are admissible

Court orders

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  1. 1.The preliminary objections of the 1st and 2nd Respondents are upheld
  2. 2.The Applicants' suit is dismissed
  3. 3.Each party to bear their own costs

Authorities

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Legislation

  • Constitution of KenyaArticle 162(2)(b)
  • Constitution of KenyaArticle 165(3)
  • Environment and Land Court ActSection 13
  • Civil Procedure ActSection 7

Cases cited (4)

  • Cooperative Bank of Kenya Limited vs Patrick Kangethe Njuguna & 5 Others
    [2017] eKLR
  • Owners of Motor Vessel 'Lilian S' v Caltex Oil (Kenya) Ltd
    (1989) 1 KLR
  • Mukisa Biscuits Manufacturing Co. Ltd v West End Distributors Ltd
    (1969) EA 696
  • Julius Kipkeny Koli & Ruth Jemutai Kamar v Kenya Commercial Bank Limited and 2 Others (Nairobi HCC 407 of 2012)
Jurisdiction invoked
Article 162(2)(b) of the Constitution and Section 13 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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Later judgments citing this (2)

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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, "Julius Kipkeny Kolil & another v Kenya Commercial Bank & 3 others [2022] KEELC 1186 (KLR)", Case Analysis (2022). ELC Originating Summons dated 18th June 2021 (Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/1186/eng@2022-02-15

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