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ELCStruck OutNot stated in judgment (Malindi ELC)· [2024] KEELC 1625 (KLR)

Kinuthia v Kanyi & another (Environment and Land Case E007 of 2023) [2024] KEELC 1625 (KLR)

Environment and Land Court
20 March 2024
3,065 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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A Kenyan land court struck out a buyer's case against a bank's property auction, ruling that disputes about charges and statutory power of sale belong in the High Court.

What this practically means

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Executive summary

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The plaintiff filed a Notice of Motion dated 20th July 2023 under 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, seeking temporary injunctions to restrain the 1st and 2nd defendants from selling by public auction or otherwise interfering with Maisonette Number 31, Ivory Court Estate on subdivision Number 448 (Original Number 442/7), Mainland North. The plaintiff's underlying claim was for specific performance of a sale agreement with the 1st defendant concluded by 18th March 2015, under which he had been in occupation. The 2nd defendant, a chargee holding a registered legal charge over the title securing loans advanced to the 1st defendant, raised a Preliminary Objection contending that the dispute - centred on its statutory power of sale following default - was commercial in nature and beyond the ELC's jurisdiction under Section 13 of the ELC Act and Article 162(2)(b) of the Constitution. The Court restated the law on preliminary objections (Mukisa Biscuit; IEBC v Cheperenger) and on jurisdiction (Owners of the Motor Vessel 'Lillian S'). Finding that the substratum of the suit was the subsisting legal charge and the 40-day statutory notice of sale, with fraud and due-diligence allegations only secondary, and noting there was no privity of contract between the applicant and the chargee, the Court held the High Court was the appropriate forum. Relying on Phoenix of E.A. Assurance v Thiga, the Court held a suit filed without jurisdiction cannot be transferred and struck out the pending application and the entire suit. It also censured the proliferation of suits, noting a similar suit (Mombasa ELC 175 of 2021) was already pending, and awarded costs to the 2nd defendant.

Key legal issues

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01

Whether the ELC has jurisdiction over a dispute whose predominant feature is a registered charge and the chargee's statutory power of sale

Holding

The ELC lacks jurisdiction; the High Court is the appropriate forum, applying Thomas Mutuku Kasue v Housing Finance Company Ltd.

Reasoning

Although the applicant sought specific performance of a sale agreement, the original title was already charged to the 2nd respondent who had issued a 40-day statutory notice. There was no privity of contract between the applicant and the chargee. The predominant issue was the subsisting legal charge and the statutory power of sale, which per judicial precedent falls within the High Court's jurisdiction. Fraud and due-diligence allegations are secondary.

p. 5
02

Whether a suit filed without jurisdiction can be transferred to a competent court

Holding

No - the only remedy is to strike it out; transfer would sanctify an incompetent suit.

Reasoning

Relying on Phoenix of E.A. Assurance Co. Ltd v M. Thiga and Equity Bank Ltd v Bruce Mutie Mutuku, the Court held that jurisdiction must exist when a suit is filed; a court cannot transfer a suit filed without jurisdiction, and parties cannot confer jurisdiction by consent or invoke the overriding objective or Article 159 to cure the defect.

p. 5
03

The nature of a valid Preliminary Objection

Holding

A preliminary objection must raise a pure point of law on assumed facts, per Mukisa Biscuit and IEBC v Jane Cheperenger.

Reasoning

The Court restated the classic formulation that a preliminary objection consists of a point of law pleaded or arising by clear implication from the pleadings, which may dispose of the suit, and cannot be raised if facts must be ascertained or judicial discretion exercised. The jurisdictional objection here met that test.

p. 3

Legal principles established

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  • Where the substratum of a suit is a registered legal charge and the exercise of the chargee's statutory power of sale, the appropriate forum is the High Court, not the ELC.
  • A suit filed in a court without jurisdiction is dead on arrival and cannot be cured by transfer; it must be struck out.

Court orders

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  1. 1.The pending application dated 20th July 2023 and the entire suit are struck out
  2. 2.Costs of the suit awarded to the 2nd respondent

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 1B, 3A, 18
  • Civil Procedure RulesOrder 40 Rules 1 & 2; Order 51 Rule 1
  • Environment and Land Court ActSection 13
  • Constitution of KenyaArticle 162(2)(b); Article 159

Cases cited (12)

  • Cooperative Bank Limited v Patrick Kangethe Njuguna & 5 Others
    [2017] eKLR
  • Thomas Mutuku Kasue v Housing Finance Company Ltd (HFC) & Another
    [2021] eKLR
  • Albert Chaurembo Mumba & 7 Others v Maurice Munyao & 148 Others
    [2019] eKLR
  • Phoenix of E.A. Assurance Company Limited v M. Thiga t/a Newspaper Service
    [2019] eKLR
  • Lydia Nyambura Mbugua v Diamond Trust Bank Kenya Ltd
    [2018] eKLR
  • DJC v BKL
    (Civil Suit E021 of 2021) [2022] KEHC 10189 (KLR) (27 June 2022)
  • Hassan Ali Joho & Another v Suleiman Said Shahbal & 2 Others
  • Mukisa Biscuit Manufacturing Co. Ltd v West End Distributors Ltd.
    (1969) EA 696
  • Independent Electoral & Boundaries Commission v Jane Cheperenger & 2 Others
    [2015] eKLR
  • Owners of the Motor Vessel "Lillian S" v Caltex Oil (Kenya) Ltd
    [1989] eKLR
  • Keter v Ecobank Kenya Limited
    (Civil Case 16 of 2018) [2022] KEHC 13352 (KLR) (28 September 2022)
  • Equity Bank Limited v Bruce Mutie Mutuku t/a Diani Tour Travel
    (2016) eKLR
Jurisdiction invoked
Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (13)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Kinuthia v Kanyi & another (Environment and Land Case E007 of 2023) [2024] KEELC 1625 (KLR)", Case Analysis (2024). Not stated in judgment (Malindi ELC). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/1625/eng@2024-03-20

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