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Case Brief · caselaw.co.ke
ELCDismissedEnvironment & Land Case 11 of 2021· [2023] KEELC 16466 (KLR)

Bahasi v Uhutta Properties Limited & another

Environment and Land Court
20 March 2023
1,633 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Kwale land buyer lost his bid to block a property sale because his claimed loss could be calculated and paid back in money.

What this practically means

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Executive summary

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The Applicant, registered owner of approximately 84 acres at Samburu South, Gora Village, Matope Sub location, moved the court by amended Notice of Motion dated February 16, 2022 seeking temporary injunctions restraining the Respondents from entering, developing, selling or dealing with the suit property pending hearing of the application and the suit. He alleged the 1st Respondent agreed to purchase the property on February 11, 2017 for Kshs 30,240,000/-, paid a deposit and part payments leaving a balance of Kshs 17,262,000/-, and then purported to sell the property to the 2nd Respondent, who was developing it. The 1st Respondent, through its Director Ibrahim Santur, denied the Applicant's agreement as a fabrication, asserting a December 9, 2016 agreement under which it paid a Kshs 3,000,000/- deposit and completed payment in full. The Applicant relied on Giella v Cassman Brown, Nguruman and Mrao Ltd to argue a prima facie case and irreparable loss. The court, per A.E. Dena J, found two competing agreements whose validity and completion of the purchase price could only be resolved at trial, and held a prima facie case was established. However, applying Nguruman's sequential hurdles, the court found the alleged economic loss quantifiable and compensable with interest, hence no irreparable loss, and declined to consider the balance of convenience. The application was dismissed with costs following the event.

Key legal issues

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01

Whether the Applicant established a prima facie case

Holding

Yes - on the material presented, a legal right apparently infringed by the 1st defendant was shown, calling for explanation or rebuttal

Reasoning

The court noted two competing sale agreements dated February 11, 2017 and December 9, 2016. Applying Mrao Ltd v First American Bank, the court found the crux - which agreement is valid and whether the purchase price was completed - can only be resolved upon hearing evidence of both parties, and that a prima facie case was established.

p. 3
02

Whether the Applicant would suffer irreparable loss not compensable by damages

Holding

No - the alleged economic loss is ascertainable, repayable, and carries interest; damages are an adequate remedy

Reasoning

The Applicant claimed untold misery and economic abuse incapable of compensation. The court held the economic loss was capable of being ascertained and repaid, being essentially the difference in purchase price once the valid agreement is established, with interest payable for the period the balance was retained.

p. 3
03

Whether the balance of convenience and remaining Giella requirements needed consideration

Holding

No - having failed on irreparable loss, the court declined to consider the remaining requirement

Reasoning

Relying on Nguruman, the three conditions are separate, distinct and logical hurdles to be surmounted sequentially. Since the Applicant failed to establish irreparable loss, the court did not dwell on the balance of convenience.

p. 4

Legal principles established

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  • Irreparable harm must be a harm that cannot be quantified in monetary terms or which cannot be cured
  • Where the dispute turns on the validity of competing agreements resolvable only at trial, an interlocutory injunction is not a fit remedy

Court orders

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  1. 1.The amended Notice of Motion dated February 16, 2022 is dismissed
  2. 2.Costs shall follow the event

Authorities

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Cases cited (5)

  • Giella v Cassman Brown & Company Limited
    [1973] EA 358

    Settled principles for grant of temporary injunctions

  • Nguruman Limited v Jan Bonde Nielsen & 2 others
    CA No.77 of 2012 [2014] eKLR

    Triple requirements for interlocutory injunction applied as sequential hurdles

  • Mrao Ltd v First American Bank of Kenya Ltd
    [2003] eKLR

    Definition of a prima facie case in civil cases

  • Prudential Assurance Company of Kenya Limited v Sukhwender Singh Jutney
    Civil Appeal No 23 of 2005

    Relied on by Applicant for injunction principles

  • Paul Gitonga Wanjau v Gathuti Tea Factory Company Ltd & Two Others
    [2016] eKLR

    Irreparable harm must be unquantifiable in monetary terms or incurable

Jurisdiction invoked
Environment and Land Court jurisdiction over land disputes (Environment and Land Court Act)

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, "Bahasi v Uhutta Properties Limited & another", Case Analysis (2023). Environment & Land Case 11 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/16466/eng@2023-03-20

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