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ELCDismissedEnvironment & Land Case 70 of 2019· [2022] KEELC 13327 (KLR)

Safeway Hypermarkets Limited v National Social Security Fund Board of Trustees; Attorney General & another (Third Party)

Environment and Land Court
6 October 2022
2,283 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court refused to fast-track a Kshs 30.7 million land refund claim against NSSF because acknowledging facts is not the same as admitting liability.

What this practically means

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Executive summary

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The plaintiff, Safeway Hypermarkets Limited, moved the Environment and Land Court by notice of motion dated 22 February 2022 seeking judgment on admission against the National Social Security Fund Board of Trustees for kshs 30,712,320 with interest at prevailing commercial rates from filing until payment in full, plus costs. The claim arose from a 2006 sale of land; the plaintiff paid the purchase price and obtained title, but the National Land Commission revoked the title by gazette notice on 22 January 2016. The plaintiff argued the defendant had expressly admitted the claim by acknowledging receipt of the purchase price and by seeking indemnity from third parties. The defendant, through a replying affidavit by Hellen Koech, acknowledged receiving the money and transferring title but denied admitting liability, asserting it held valid title, that the sale was subject to a disclaimer, that the plaintiff conducted its own due diligence, and that the claim was time barred. M.D. Mwangi J framed two issues: whether there was a clear and unequivocal admission, and whether the case was fit for summary judgment. Applying Order 13 rule 2 and authorities including Guardian Bank v Jambo Biscuits, Cassam v Sachania, Choitram v Nazari and Ideal Ceramics v Suraya Property, the court held the defendant admitted only facts, not liability. The court further noted the plaint sought additional reliefs (compensation and general damages for loss of user) that would still require trial, and that pre-suit interest must be proved. The application was dismissed with costs.

Key legal issues

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01

Whether the defendant's statement of defence and replying affidavit amounted to a clear and unequivocal admission of liability

Holding

No - the defendant only admitted the factual sequence of the sale, payment and transfer, not liability to refund

Reasoning

The court distinguished admission of facts from admission of liability. The defendant acknowledged the 2006 agreement, receipt of the purchase price and transfer of title, but asserted it had a valid title, relied on a disclaimer in the agreement, disputed entitlement to compensation, and pleaded limitation. Such contested issues preclude judgment on admission.

p. 4
02

Whether the case was suitable for summary judgment

Holding

No - the plaint sought additional reliefs (compensation and general damages for loss of user) that would still require a full hearing

Reasoning

Even if the refund claim were granted, the court would still have to proceed to trial on the remaining prayers. The plaintiff was also mute on those other prayers, and its claim for pre-suit interest at commercial rates required proof under section 26(1) of the Civil Procedure Act.

p. 5

Legal principles established

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  • Judgment on admission under Order 13 rule 2 may be entered only in plain cases where admissions are clear, unequivocal and amount to an admission of liability
  • In exercising the discretion the court must consider all the circumstances of the case and the issues of fact or law raised by the defendant
  • Interest prior to the date of suit is not automatic and must be pleaded and proved under a contract, mercantile usage, statute or implied agreement

Court orders

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  1. 1.The plaintiff's application dated February 22, 2022 seeking judgment on admission is dismissed
  2. 2.Costs of the application awarded to the defendant
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over a land sale dispute; application under Order 13 rule 2 of the Civil Procedure Rules

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, "Safeway Hypermarkets Limited v National Social Security Fund Board of Trustees; Attorney General & another (Third Party)", Case Analysis (2022). Environment & Land Case 70 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/13327/eng@2022-10-06

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