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ELCPartially Allowed· [2024] KEELC 773 (KLR)

Efficient Dynamics & Supplies Limited v Gret Café’ Limited (Environment & Land Case E006 of 2023) [2024] KEELC 773 (KLR)

High Court of Kenya (Nairobi)
21 February 2024
8,598 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan High Court refused a company's eviction and contempt claims but set aside earlier orders because a tenant already in occupation had not been included in the case.

What this practically means

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Executive summary

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This ruling of Mogeni J at Nairobi determines four interlocutory applications arising from a lease dispute over LR 3734/843 off James Gichuru Road: the plaintiff's application dated 11/07/2023 seeking temporary, quia timet and mandatory injunctions; the defendant's application dated 28/07/2023 seeking stay of the ex parte orders of 18/07/2023, review/setting aside, and joinder of RNN Motors Limited; the plaintiff's contempt application dated 08/08/2023 against the defendant and its director John Malogo Ndiritu; and RNN Motors Limited's application dated 26/09/2023 seeking joinder and setting aside of the orders. The court applied Giella v Cassman Brown and Mrao v First American Bank on injunctions, and Kenya Breweries v Washington Okeyo on mandatory injunctions, holding that the plaintiff failed to establish a prima facie case with probability of success and that a mandatory injunction would dispose of the suit at interlocutory stage. The contempt application failed because the ex parte order of 18/07/2023 was never served directly on the defendant's directors and was not shown to bear a penal notice, and contempt being quasi-criminal requires near-criminal proof. Stay was refused as no appeal was pending. However, the court found an error apparent on the face of the record in the order of 18/07/2023 (affirmed 25/09/2023) because the interested party was already in occupation under a lease dated 28/06/2023 and had not been enjoined; the order was accordingly reviewed and set aside, and RNN Motors Limited was joined as an interested party with 14 days to respond. The plaintiff's application of 11/07/2023 was adjourned for directions on 4/03/2024. Costs were left to abide the cause.

Key legal issues

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01

Grant of temporary and mandatory injunctions

Holding

Mandatory injunction refused; plaintiff failed the Giella and Mrao tests; no prima facie case with probability of success

Reasoning

The plaintiff's claim rested solely on a subsisting lease dated 28/10/2022 expiring 31/01/2028. The court found doubt whether the plaintiff would suffer loss not compensable by damages and held that granting the mandatory injunction would dispose of the main suit at interlocutory stage. The lease termination issue required evidence at trial.

p. 10
02

Contempt of court

Holding

Contempt application dated 08/08/2023 declined; the ex parte order of 18/07/2023 was never served directly on the defendant's directors and no penal notice was shown

Reasoning

Contempt being quasi-criminal, proof must be almost beyond reasonable doubt. The three elements (terms of order, knowledge, non-compliance) were not established; the affidavit of service did not show service of the order with the mandatory penal notice, and the alleged false affidavit of service was not rebutted.

p. 9
03

Stay of execution

Holding

Stay refused - no pending appeal or notice of appeal

Reasoning

Under Order 42 rule 6 stay presupposes an appeal or intention to appeal; no notice of appeal or appeal existed, and the applicant did not demonstrate substantial loss.

p. 12
04

Review and setting aside of the order of 18/07/2023

Holding

Order of 18/07/2023 (affirmed 25/09/2023) reviewed and set aside on the ground of error apparent on the face of the record

Reasoning

The interested party was already in occupation of the suit property under a lease dated 28/06/2023 when the ex parte orders issued, but the plaintiff did not enjoin it. That constituted error apparent on the face of the record justifying review under Section 80 CPA and Order 45 Rule 1.

p. 14
05

Joinder of the Interested Party

Holding

RNN Motors Limited enjoined as an interested party under Order 1 Rule 10(2)

Reasoning

The interested party held an alleged lease over the suit property and was affected by the orders of 18/07/2023 while in occupation, giving it a recognizable stake or legal interest in the proceedings.

p. 15

Legal principles established

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  • Elements of contempt: the applicant must prove the terms of the order, the respondent's knowledge of those terms, and the respondent's failure to comply
  • Contempt is quasi-criminal and must be proved to a standard higher than balance of probabilities
  • Review is confined to error apparent on the face of the record and is not an appeal
  • An interested party with an existing lease over the suit property has a recognizable stake and must be joined

Court orders

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  1. 1.The application dated 28/07/2023 is merited in terms of prayer 2 and 3 and all its consequential orders (stay of execution and setting aside/review of the order of 18/07/2023)
  2. 2.The application dated 08/08/2023 (contempt) is found to be unmerited and is declined
  3. 3.The application dated 26/09/2023 is merited in terms of prayer 2 and 4; RNN Motors Limited is enjoined as an Interested Party and granted 14 days to file and serve its response to the application dated 11/07/2023
  4. 4.The application dated 11/07/2023 shall be mentioned on 4/03/2024 for further directions on disposal
  5. 5.The costs of the applications shall abide the cause

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 1B, 3A, 80
  • Civil Procedure Rules, 2010Order 40 Rules 2(1), 2(4), 7; Order 42 Rule 6; Order 45 Rule 1; Order 51 Rule 1; Order 1 Rule 10(2)
  • Constitution of Kenya (Protection of Rights and Fundamental Freedoms) Practice and Procedure Rules, 2013 (Mutunga Rules)Rules 2 and 25
  • Land Act No. 3 of 2012Section 65(1)(a)

Cases cited (15)

  • Giella vs Cassman Brown & Co Ltd
    (1973) EA 358
  • Kenya Breweries Ltd and another v Washington Okeyo
    (2002) 1 E.A. 109
  • Mrao Ltd v First American Bank of Kenya Ltd & 2 Others
    [2003] eKLR; (2003) KLR 125
  • Gatharia K. Mutikika –v- Bahirini Farm Ltd
    (1985) KLR 227
  • Shimmers Plaza Limited Vs. National Bank of Kenya Ltd
    (2015) eKLR
  • Nguruman Limited v Jan Bonde Nielsen & 2 Others
    [2014] eKLR
  • Kenya Airport Authority –vs- Paul Njogu Muigai & 2 others
    Civil Application No. NAI 29/97 (UR)
  • Shepherd Homes Case
    1971 ICH 34
  • Locabail International Finance Ltd
  • Equity Bank Limited vs West Link MBO Limited
    Nairobi Court of Appeal Civil Application No. 78 of 2011
  • Ajit Kumar Rath – Versus – State of Orisa
    9 Supreme Court Cases 596
  • Nyamongo & Nyamongo – Versus – Kogo
    (2001) EA 170
  • Tokesi Mambili and Others – Simion Litsanga
    Civil Appeal No. 45 of 2003
  • JMK…Vs…MWM & Another
    (2015) eKLR
  • Code of Civil Procedure (Sir Dinshah Fardunji Mulla, 18th Edition)
Jurisdiction invoked
Inherent and statutory jurisdiction under Sections 1A, 1B, 3A and 80 of the Civil Procedure Act, Orders 40, 42, 45, 51 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, "Efficient Dynamics & Supplies Limited v Gret Café’ Limited (Environment & Land Case E006 of 2023) [2024] KEELC 773 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/773/eng@2024-02-21

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