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ELCPartially AllowedNot stated in the judgment as provided· [2023] KEELC 51 (KLR)

Lagat & 20 others (Suing as the Registered Unit owners of Apartments at the development known as Viraj Garden Apartments) v Transeshvi Limited & 5 others (Environment & Land Case E247 of 2022) [2023] KEELC 51 (KLR)

Environment and Land Court
18 January 2023
5,204 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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A Kenyan court stopped an apartment landlord side from cutting off water and electricity to unit owners, while requiring owners to keep paying service charges.

What this practically means

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Executive summary

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The plaintiffs, unit owners at Viraj Gardens Apartments, moved the court by notice of motion dated July 21, 2022 seeking injunctions restraining the defendants from collecting service charge without audited accounts, from managing the management corporation, and from disconnecting services; an order for reconnection of water; a mandatory injunction compelling the 1st-3rd defendants to convene an AGM; and leave to deposit service charges in an escrow account. The defendants opposed, arguing that the suit should be stayed under section 6 of the Civil Procedure Act because of Milimani CMCELC E260 of 2022 (between the 6th defendant and Laikipia Park Limited, a company associated with the plaintiffs), and that no prima facie case, irreparable loss, or grounds for a mandatory injunction were established. The court framed three issues. On stay, it held the suits involved neither the same parties nor the same issues, applying the Supreme Court's articulation of res sub-judice and the separate legal personality doctrine from Omondi v National Bank of Kenya and Salomon v Salomon. On prima facie case, applying Mrao and Nguruman, it found the plaintiffs' complaints of exclusion from management and charges without accounts met the threshold. On irreparable loss, it found disconnection of water and electricity infringed the right to housing under Article 43 and was not compensable in damages. The court granted a temporary injunction against service disconnection, a mandatory injunction to reconnect water at the defendants' expense, required the plaintiffs to keep paying monthly service charge pending the AGM, and ordered the 1st-3rd defendants to convene an AGM within 14 days under section 26 of the Sectional Properties Act. Other reliefs, including the escrow account and a service-charge injunction, were declined; costs abide the main suit.

Key legal issues

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01

Whether the suit should be stayed under section 6 of the Civil Procedure Act pending Milimani CMCELC E260 of 2022

Holding

Stay refused; the parties and issues in the earlier suit are not the same

Reasoning

The earlier suit is between the 6th defendant and Laikipia Park Limited; none of the plaintiffs are parties to it. Shareholding or directorship in Laikipia Park Limited does not make the plaintiffs parties, given the separate legal personality of a company. The issues in the two suits also differ, so the ingredients of section 6 were not met.

p. 9
02

Whether the plaintiffs established a prima facie case

Holding

Yes; the complaints in the supporting affidavits met the threshold

Reasoning

Applying the Mrao and Nguruman definitions, the court found that the plaintiffs' complaints - exclusion from the management corporation, extraction of service charges without accounts, and contrary conduct under the Sectional Properties Act - showed an apparent infringement of a right warranting interrogation and protection.

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Whether the plaintiffs would suffer irreparable loss

Holding

Yes; disconnection of essential services would occasion irreparable loss

Reasoning

The defendants admitted disconnecting water and electricity. Enjoyment of the right to housing under Article 43 depends on such essential services, as reinforced by the ICESCR. Such loss cannot adequately be compensated by damages, satisfying the second Giella limb.

p. 11

Legal principles established

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  • A company is separate and distinct from its shareholders and directors; suing a company does not make its shareholders or directors parties to the suit
  • Requirements of the res sub-judice rule under section 6 of the Civil Procedure Act
  • Definition of a prima facie case for interlocutory injunctions

Court orders

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  1. 1.Temporary injunction restraining the 1st-5th defendants from interfering, disconnecting or discontinuing services to the unit owners including electricity supply to common areas, water supply to all units and common areas, cleaning and security services
  2. 2.Mandatory injunction directing the defendants to immediately reconnect the plaintiffs to the water supply at the defendants' expense
  3. 3.Plaintiffs to pay the requisite monthly service charge to the 6th defendant pending the convening and holding of the AGM
  4. 4.Mandatory injunction directing the 1st-3rd defendants to convene an annual general meeting within 14 days with an agenda including formation of a proper board of management under section 26 of the Sectional Properties Act, all unit owners notified of their right to vote
  5. 5.Reliefs not expressly granted declined
  6. 6.Costs of the application to abide the outcome of the main suit

Authorities

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Legislation

  • Civil Procedure Act, Chapter 21 Laws of KenyaSection 6
  • Sectional Properties ActSections 26 and 27
  • Constitution of Kenya, 2010Article 43
  • International Covenant on Economic, Social & Cultural Rights (ICESCR)Not specified

Cases cited (10)

  • Giella versus Cassman Brown & Co Ltd
    [1973] EA 358
  • Mrao Ltd versus First American Bank Ltd
    [2003] eKLR
  • Nguruman Ltd v Jan Bode Nielsen & 2 others
    [2014] eKLR
  • Nation Media Group & 2 others v John Harun Mwau
    [2014] eKLR
  • Generous Wanjau Wanderi & 7 Others v Kirui Investments Co Ltd
    [2019] eKLR
  • Lucy Wangui Ng'ang'a v Minudi Okemba Lore
    Civil Appeal No 4 of 2015
  • Kenya National Commission on Human Rights v Attorney General; Independent Electoral and Boundaries Commission & 16 Others
    [2020] eKLR
  • Omondi v National Bank of Kenya Ltd
    [2001] eKLR
  • Salmon v Salmon & Co Ltd
    [1897] AC 22
  • Vivo Energy Kenya Limited versus Maloba Petrol Station Limited & 3 others
    [2015] eKLR
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over the suit premises and the Sectional Properties Act, 2020

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, "Lagat & 20 others (Suing as the Registered Unit owners of Apartments at the development known as Viraj Garden Apartments) v Transeshvi Limited & 5 others (Environment & Land Case E247 of 2022) [2023] KEELC 51 (KLR)", Case Analysis (2023). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/51/eng@2023-01-18

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