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ELCDismissed· [2024] KEELC 1818 (KLR)

Ichwara v United National Savings & Credit Co-operative Society Limited & another (Environment and Land Appeal E041 of 2023) [2024] KEELC 1818 (KLR)

Environment and Land Court
20 March 2024
1,293 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~5 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court confirmed it can hear disputes about lenders selling charged land, dismissing a Sacco's attempt to move the case elsewhere.

What this practically means

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Executive summary

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This ruling of the Environment and Land Court at Nairobi, delivered by E. K. Wabwoto J on 20th March 2024, determines a preliminary objection dated 17th November 2023 raised by the 1st Respondent, a Sacco, challenging the court's jurisdiction. The objection was premised on two grounds: first, that the matter arises from a ruling of the Co-operative Tribunal delivered on 31st August 2023, from which any appeal lies only to the High Court under Section 81 of the Co-operative Societies Act; and second, that the dispute is essentially a commercial one concerning recovery of a defaulted secured loan, being a debt owed to a co-operative society. The Applicant, whose property Nairobi/Block 139/99 at Marurui was charged to secure a Kshs 10,000,000 loan advanced in 2017 and who faced a 45-day redemption notice issued on 10th August 2021 for Kshs 12,025,038 plus interest, contended that statutory notices were not served and that the ELC had jurisdiction over land disputes, including as an appellate court. The court identified a single issue: whether it had jurisdiction. Relying on the Samuel Kamau Macharia decision on jurisdiction, Cooperative Bank v Patrick Kangethe Njuguna on the limits of the High Court's jurisdiction over charge disputes, and Kennedy Kimani Ndarwa on the tribunal's lack of jurisdiction over land matters, the court held that enforcement of the chargee's rights engages Sections 90, 96, 97 and 98 of the Land Act, which fall within the ELC's jurisdiction under Sections 128 and 150. The ELC, a constitutional superior court under Article 162, has appellate jurisdiction over the Co-operatives Tribunal. The preliminary objection was dismissed with no orders as to costs.

Key legal issues

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Whether the Environment and Land Court has jurisdiction over proceedings arising from a Co-operative Tribunal ruling concerning realization of security for a defaulted loan

Holding

The preliminary objection failed; the ELC has jurisdiction because the dispute involves enforcement of a charge over land under the Land Act, and the ELC has appellate jurisdiction over the Co-operatives Tribunal

Reasoning

The court accepted the dispute arose from a Kshs 10,000,000 loan secured by a charge over Nairobi/Block 139/99. Enforcement of the chargee's rights engages Sections 90, 96, 97 and 98 of the Land Act, matters which under Sections 128 and 150 fall within the ELC's jurisdiction. Although Section 81 of the Co-operative Societies Act routes appeals to the High Court, the ELC, being a superior court under Article 162(1) with appellate jurisdiction over tribunals including the Co-operatives Tribunal, was properly seized of the matter.

p. 2

Legal principles established

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  • A court's jurisdiction flows from the Constitution or legislation and cannot be expanded by judicial craft
  • The High Court's jurisdiction over chargor/chargee disputes is triggered only where accounting issues arise in connection with the disposition of land
  • Enforcement of a chargee's statutory powers of sale falls within the ELC's jurisdiction under the Land Act
  • The ELC is a superior court of equal status to the High Court, created by the Constitution, with appellate jurisdiction over the Co-operatives Tribunal

Court orders

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  1. 1.The Preliminary Objection dated 17th November 2023 is dismissed
  2. 2.No orders as to costs

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 162(2)
  • Constitution of Kenya, 2010Article 162(1)
  • Constitution of Kenya, 2010Article 259
  • Co-operative Societies ActSection 81
  • Environment and Land Court ActSection 21(1)
  • Land ActSections 90, 96, 97 and 98
  • Land ActSections 128 and 150

Cases cited (5)

  • Samuel Kamau Macharia -vs- Kenya Commercial Bank & 2 Others
    Civil Appl. No. 2 of 2011
  • Cooperative Bank of Kenya Limited v Patrick Kangethe Njuguna & 5 Others
    [2017] eKLR
  • Kennedy Kimani Ndarwa v Methi & Swani Farmers’ Cooperative Society Limited & another
    [2016] eKLR
  • Chimweli Jangaa Mangale & 3 Others vs Hamisi Mohamed Mwawasaa & 15 others
    [2016] eKLR
  • Ufundi Savings & Credit Co-operative Society Limited v Francis Gitari Ndirangu & 99 others
    [2015] eKLR
On appeal from
Co-operative Tribunal
Jurisdiction invoked
Article 162(2) of the Constitution and Section 21(1) 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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Cite this brief

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Cite this brief

Caselaw, "Ichwara v United National Savings & Credit Co-operative Society Limited & another (Environment and Land Appeal E041 of 2023) [2024] KEELC 1818 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/1818/eng@2024-03-20

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