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ELCAllowedEnvironment & Land Case 175 of 2021· [2023] KEELC 21617 (KLR)

Kimani & 5 others v Kanyi & another

Environment and Land Court of Kenya
6 November 2023
11,170 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~45 min to read original · ~4 min brief

The bottom line

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A Mombasa court blocked a bank and a vendor from dealing with homes bought by six families who had paid in full and moved in.

What this practically means

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Executive summary

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This is a ruling by the Environment and Land Court at Mombasa (Naikuni J) on the Plaintiffs' Notice of Motion dated 25th August 2021 seeking an interlocutory injunction restraining the Defendants from disposing of, leasing, renting or interfering with the Plaintiffs' use, ownership and occupation of Sub-Division Number 9613 Section III Mainland North, pending hearing of the suit. The six Plaintiffs purchased maisonettes on the suit property from the 1st Defendant under separate sale agreements, paid the full purchase price and requisite costs, and took possession, but the 1st Defendant refused to issue registered leases and instead charged the property to the 2nd Defendant (Stanbic Bank) on 1st August 2018 to secure Kshs 38,400,000 without the Plaintiffs' knowledge or consent. The Bank opposed, arguing it conducted due diligence, the title was unencumbered, the Plaintiffs failed to lodge cautions, its registered charge ranked higher, and no default or statutory notices were demonstrated. The court framed three issues and applied the Giella v Cassman Brown test as elaborated in Nguruman. It found a prima facie case: the completed sale agreements, full payment and delivery of possession gave the Plaintiffs proprietary rights, and the vendor's subsequent charging of the property without consent warranted an interlocutory order. The Bank's caution argument was held premature at the interlocutory stage. Irreparable injury was found because the Plaintiffs occupy the property as matrimonial homes, and the balance of convenience favoured preserving the status quo. The application was allowed in its entirety with a temporary injunction issued and costs to the Plaintiffs against both Defendants; the suit was fixed for hearing on 14th March 2024.

Key legal issues

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01

Whether the Plaintiffs established a prima facie case with a probability of success

Holding

Yes - the sale agreements, full payment of purchase price and delivery of possession gave the Plaintiffs proprietary rights; the vendor's subsequent charging of the property without their knowledge or consent warranted an interlocutory order

Reasoning

The court found the sale agreements undisputed, purchase price and requisite costs fully paid, and possession delivered. The vendor's failure to issue registered leases and his charging of the property to the Bank without the purchasers' consent or knowledge constituted an apparent breach and infringement of proprietary rights, satisfying the Mrao definition of a prima facie case.

p. 18
02

Whether the Plaintiffs would suffer irreparable injury not compensable in damages

Holding

Yes - the Plaintiffs and their families occupy the suit property as their matrimonial homes, an injury not adequately compensable in damages

Reasoning

The court accepted that the Plaintiffs had moved into the maisonettes with their families and made them matrimonial homes. Following authority that potential loss of a matrimonial home before determination of the suit amounts to irreparable injury, the court held damages would not adequately compensate the Plaintiffs' continuous occupation rights.

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Where the balance of convenience lies

Holding

In favour of granting the injunction - there is a lower risk of injustice in preserving the status quo pending trial

Reasoning

The court weighed the Plaintiffs' occupation of their homes against the Bank's interest in loan recovery, noting monthly repayments could protect the Bank's interest. Relying on Amir Suleiman, the court opted for the lower risk of injustice by maintaining the status quo until trial.

p. 20
04

Whether the Plaintiffs' failure to lodge a caution or restriction defeats their claim

Holding

Not at the interlocutory stage - that argument is premature and a matter for full trial

Reasoning

The Bank argued the Plaintiffs slept on their rights by not lodging cautions under Sections 71 and 72 of the Land Registration Act. The court held that at the interlocutory stage it must not make final findings on contested facts and law, deferring the merits of that argument to trial.

p. 17

Legal principles established

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  • At the interlocutory stage the court does not make final findings on contested facts; it only weighs the relative strength of the parties' cases against the Giella criteria
  • A purchaser who has paid the full purchase price and taken possession acquires proprietary rights sufficient to establish a prima facie case where the vendor subsequently charges the property without the purchaser's knowledge or consent
  • The court should opt for the lower rather than the higher risk of injustice when deciding where the balance of convenience lies

Court orders

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  1. 1.The Notice of Motion application dated 25th August, 2021 be and is hereby found to have merit hence it is allowed in its entirety
  2. 2.An order of temporary injunction issued restraining the 1st and 2nd Defendants, their officers, agents, employees, assigns or any person acting on their behalf from disposing of, leasing, renting, or in any manner dealing with or interfering with the Plaintiffs' use, ownership and occupation of Sub-Division Number 9613 Section III Mainland North
  3. 3.The matter to be heard on 14th March, 2024, with parties to comply with Order 11 pre-trial requirements before the hearing date
  4. 4.Costs of the application awarded to the Plaintiffs/Applicants, to be borne by the 1st and 2nd Defendants

Authorities

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Legislation

  • Land Registration ActSections 30, 54(5), 56, 57, 68, 69, 71, 72(2), 76, 77
  • Civil Procedure ActSections 1A, 3A, 27(1)
  • Civil Procedure Rules, 2010Order 40 Rule 1; Order 11
  • Sectional Properties Act
  • Constitution of Kenya, 2010

Cases cited (17)

  • Giella vs Cassman Brown & Co Ltd
    (1973) EA 358

    Triple test for interlocutory injunctions: prima facie case, irreparable injury, balance of convenience

  • Nguruman Limited v Jan Bonde Nielsen & 2 others
    [2014] eKLR

    Conditions must be surmounted sequentially; no leap-frogging; speculative injury insufficient

  • Pius Kipchirchir Kogo v Frank Kimeli Tenai
    [2018] eKLR

    Definitions of prima facie case, irreparable injury and balance of convenience

  • MRAO Ltd v First American Bank of Kenya Ltd & 2 others
    [2003] eKLR

    Definition of prima facie case - apparent infringement of a right calling for rebuttal; higher than arguable case

  • Banis Africa Ventures Limited v National Land Commission
    [2021] eKLR

    Meaning of irreparable injury - substantial injury not adequately remedied by damages

  • Stanley Kipruto Bommet v National Bank of Kenya & another
    [2017] eKLR

    Potential loss of matrimonial home before determination amounts to irreparable injury

  • Peter Kasimba & 219 Others v Kwetu Savings & Credit Co-Operative Society Limited & 11 others
    [2020] eKLR

    Court decides on balance of convenience where in doubt on prima facie case

  • Kundan Singh Construction Company International Limited v Bank of Africa Kenya Limited (Interested Party)
    HCCC No.71 of 2015

    Courts cannot rewrite contracts; their role is limited to enforcing lawful contracts

  • National Bank of Kenya Ltd v Pipeplastic Samkolit (K) Ltd & another
    Civil Appeal No. 95 of 1999

    Parties are bound by terms of their contract unless coercion, fraud or undue influence pleaded and proved

  • Elijah Kipng'eno Arap Bii v Kenya Commercial Bank
    [2001] eKLR

    Once property is offered as security it becomes a commodity for sale whose loss is compensable in damages

  • Mbuthia v Jimba Credit Corporation Ltd
    [1988] KLR 1

    Interlocutory injunction court does not make final findings of contested facts; weighs relative strength of cases

  • Edwin Kamau Muniu v Barclays Bank of Kenya Ltd

    Interlocutory application does not determine issues to be canvassed at trial with finality

  • Paul Gitonga Wanjau v Gathuthis Tea Factor Company Ltd & 2 others
    (2016) eKLR

    Balance of convenience - court seeks to maintain the status quo

  • Amir Suleiman v Amboseli Resort Limited
    [2004] eKLR

    Court should opt for the lower rather than the higher risk of injustice

  • Robert Mugo Wa Karanja v Ecobank (Kenya) Limited & Another
    [2019] eKLR

    Circumstances for granting temporary injunction under Order 40 Rule 1 - property in danger of being wasted, damaged or alienated

  • Sagalla Lodge Limited v Samwuel Mazera Mwamunga & another
    [2022] eKLR

    Costs follow events under Section 27(1) of the Civil Procedure Act; costs are discretionary

  • Kenya Commercial Finance Co. Limited v Afraha Education Society
    [2001] Vol. 1 EA 86

    Cited within Nguruman on sequential application of injunction conditions

Jurisdiction invoked
Environment and Land Court jurisdiction under the Environment and Land Court Act; application brought under Sections 30, 54(5), 56 and 57 of the Land Registration Act, 2012, Sections 1A and 3A of the Civil Procedure Act, Cap. 21 and Order 40 Rule 1 of the Civil Procedure Rules, 2010

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, "Kimani & 5 others v Kanyi & another", Case Analysis (2023). Environment & Land Case 175 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/21617/eng@2023-11-06

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