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ELCAllowedEnvironment & Land Case 14 of 2022· [2022] KEELC 13698 (KLR)

Milfan Developers Limited v Sharbaid & another

Environment and Land Court of Kenya
28 September 2022
1,621 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 Mombasa court froze dealings over a Mombasa plot because the claimed buyer had no sale agreement or proof of payment.

What this practically means

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Executive summary

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The plaintiff, Milfan Developers Limited, applied by notice of motion dated 7 February 2022, filed with the plaint, for an interlocutory injunction restraining the defendants from dealing with Subdivision No 3448 Section III, Mainland North, pending determination of a suit seeking cancellation of the 1st defendant's title, a declaration that the transfer to her was a nullity, and a permanent injunction. The plaintiff claimed to be the registered proprietor, having registered a power of attorney in favour of Mbaruk Ayub Ali Mbaruk for a failed joint venture, and to have sold the land to an interested party, Mzee Habib Amri, only to discover it had been transferred to the 1st defendant without any sale or consideration. The 1st defendant asserted she purchased the land for Kshs 10,000,000 with a transfer signed on 7 December 2016 and registered on 15 July 2021. The court applied the Giella v Cassman Brown principles. It found no sale agreement annexed, no proof of payment of the purchase price, and discrepancies between the alleged transfer date and the register extracts showing a transfer dated 14 July 2021. A prima facie case with probability of success was established; irreparable loss and the balance of convenience also favoured the plaintiff. The 2nd defendant's late-filed grounds of opposition were ignored. The court granted an injunction against the 1st defendant, ordered maintenance of the status quo on possession and use, issued an inhibition against the Land Registrar, and awarded the plaintiff costs against the 1st defendant.

Key legal issues

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01

Whether a prima facie case was established for an interlocutory injunction

Holding

Yes - the plaintiff established a prima facie case with probability of success given the absence of a sale agreement, proof of payment, and the discrepancy in transfer dates.

Reasoning

The 1st defendant claimed a purchase for Kshs 10,000,000 but annexed no sale agreement and no proof of payment. The transfer she alleged was dated 7 December 2016 yet registered on 15 July 2021, about five years later, and the register extracts showed a transfer dated 14 July 2021. These anomalies, unexplained, favoured the plaintiff's claim of fraud.

p. 3
02

Irreparable loss and balance of convenience

Holding

Both favoured the plaintiff: dealing with the property could lead to its loss, and the balance of convenience favoured maintaining the registration status quo.

Reasoning

The court noted the plaintiff appeared to have sold the suit land to the interested party for Kshs 56,500,000, so loss of the property would occasion substantial loss. Even on the balance of convenience, maintaining the registration status of the property pending trial was the appropriate course.

p. 3
03

Treatment of the 2nd defendant's late-filed grounds of opposition

Holding

The grounds of opposition, filed after the application had been heard, were ignored.

Reasoning

The application was heard on 27 June 2022 but the State Law Office filed grounds of opposition on 4 July 2022. The court held it would be improper to consider grounds not filed and served before the hearing, as the plaintiff would have no opportunity to respond; a formal application could still be made.

p. 2

Legal principles established

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  • In an injunction application the applicant must show a prima facie case with probability of success, irreparable loss, and failing which the court decides on a balance of convenience (Giella v Cassman Brown).
  • A party alleging a purchase of land should produce a sale agreement and proof of payment of the purchase price; absence of both undermines the alleged transaction at the interlocutory stage.

Court orders

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  1. 1.Interlocutory injunction stopping the 1st defendant from selling, charging, subdividing, leasing or otherwise dealing with Subdivision No 3448 (Original Number 544/24) Section III, Mainland North pending hearing and determination of the suit
  2. 2.Maintenance of the current status quo as to possession and use pending hearing and determination of the suit
  3. 3.Order of inhibition stopping the Land Registrar Mombasa from registering any dealing or disposition over the suit land
  4. 4.Costs of the application to the plaintiff as against the 1st defendant

Authorities

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Cases cited (1)

  • Giella vs Cassman Brown
    (1973) EA 358

    Setting out the principles for granting an interlocutory injunction

Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over land disputes (Article 162(2)(b) Constitution / ELC Act); not expressly stated in the ruling

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, "Milfan Developers Limited v Sharbaid & another", Case Analysis (2022). Environment & Land Case 14 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/13698/eng@2022-09-28

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