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ELCPartially AllowedNot stated in the judgment text· [2024] KEELC 1011 (KLR)

Ngahu & 2 others v Adan & another (Environment & Land Case E021 of 2024) [2024] KEELC 1011 (KLR)

Environment and Land Court
26 February 2024
3,100 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Environment and Land Court froze further dealings with a Nairobi property sold over an alleged unpaid balance, protecting buyers until the dispute goes to full trial.

What this practically means

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Executive summary

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The Plaintiffs/Applicants moved the court by Notice of Motion dated 24/01/2024 under Sections 1A, 1B and 3A of the Civil Procedure Act and Order 40 Rules 1 & 2 of the Civil Procedure Rules, seeking a temporary injunction restraining the 1st and 2nd Respondents from entering, trespassing on, excavating, constructing on or disposing of LR No. 36/1/85, together with declarations that the sale agreement of 17/04/2020 was validly rescinded, that the transfers to the 1st and 2nd Respondents were fraudulent and void, vacant possession, a permanent injunction, and damages for trespass. The applicants, beneficial owners in equal shares following a succession cause, deponed that the 1st Respondent agreed to buy the property for Ksh. 39,000,000 with a Ksh. 16,500,000 deposit, paid only Ksh. 19,200,000 by the completion date, and, despite non-payment of the balance, fraudulently caused himself to be registered and transferred the property to the 2nd Respondent, who did not respond to the application. The 1st Defendant denied this, asserting he paid the full purchase price, taking over from one Almi who had paid Ksh. 15,000,000, and accused the applicants of material non-disclosure and unclean hands. Applying the Giella v Cassman Brown principles as restated in Mrao Ltd v First American Bank, the court found a prima facie case with probability of success, noting the alleged unpaid balance and that the property had already been passed to a third party, exposing the applicants to an unenforceable decree. The court granted prayer 3 - the interim injunction preserving the status quo pending trial - and dismissed prayers 4 to 9 as matters for the full trial, with costs of the application to the applicants. Judgment delivered at Nairobi on 26 February 2024 by Mogeni J.

Key legal issues

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01

Whether a prima facie case with probability of success was demonstrated

Holding

Yes - the applicants showed the purchase price balance was allegedly unpaid while the property had been passed to a third party, making any decree unenforceable

Reasoning

The court observed that the 1st defendant had not produced evidence of payment of the Ksh. 15,000,000 allegedly paid by Mr Almi, and that it was not in dispute that the suit property had been transferred to a third party despite the alleged unpaid balance. Since the purpose of an injunction is to preserve the status quo pending trial, the plaintiffs would be obstructed in executing any decree if the property were further disposed of, so a prima facie case was demonstrated.

p. 6
02

Whether the interim injunction should issue

Holding

Yes - only prayer 3 (interim injunction pending hearing of the main suit) was granted

Reasoning

Having found a prima facie case and a likelihood that further transfers would render the suit nugatory, the court held the sequential principles need not be separately examined and granted the interim injunction restraining further dealings with LR No. 36/1/85 pending trial. The declaratory, possession, permanent injunction and damages prayers were deferred to the full trial and dismissed at this stage.

p. 6

Legal principles established

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  • The conditions for granting a temporary injunction are a prima facie case with probability of success, irreparable injury not adequately compensable by damages, and, if in doubt, the balance of convenience
  • A prima facie case is more than an arguable case; it is a case in which a right has apparently been infringed so as to call for an explanation or rebuttal from the opposite party
  • Injunctions prevent threatened events and are not granted where the event has already occurred

Court orders

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  1. 1.Temporary injunction granted in terms of prayer No. 3 of the Notice of Motion dated 24/01/2024, restraining the 1st and 2nd Respondents from entering, trespassing, excavating, constructing permanent structures or otherwise disposing of LR No. 36/1/85 pending hearing and determination of the main suit
  2. 2.Prayers No. 4 to 9 of the application dismissed
  3. 3.Costs of the application granted to the applicants

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 1B, 3A
  • Civil Procedure Rules, 2010Order 40 Rules 1 & 2; Order 51 Rule 1

Cases cited (6)

  • CMC Motors Group Ltd and another v Evans Kageche Boro
    Civil Appeal No. 295 of 2001
  • Giella v Cassman Brown and Co. Ltd
    1973 EA 358
  • Kibutiri v Kenya Shell
    Nairobi, High Court, Civil Case No. 3398/1980 [1981] LR 390
  • Micah Cheserem v Immediate Media Services & 4 others
    [2000] eKLR
  • Mrao Ltd v First American Bank of Kenya and 2 others
    [2003] eKLR / [2003] KLR 125
  • Jane Kemunto Mayaka v Municipal Council of Nakuru & Others
    High Court Civil Case No. 124 of 2005
Jurisdiction invoked
Sections 1A, 1B and 3A of the Civil Procedure Act and Order 40 Rules 1 & 2 and Order 51 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, "Ngahu & 2 others v Adan & another (Environment & Land Case E021 of 2024) [2024] KEELC 1011 (KLR)", Case Analysis (2024). Not stated in the judgment text. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/1011/eng@2024-02-26

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