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ELCStruck OutNot stated in the judgment (ELC suit, Malindi)· [2024] KEELC 1823 (KLR)

Murungi v Kanyi & another (Environment & Land Case E004 of 2023) [2024] KEELC 1823 (KLR)

Environment and Land Court
20 March 2024
2,951 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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Kenya's Environment and Land Court struck out a bid to stop a property auction because mortgage disputes belong in the High Court, not the ELC.

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 seeking temporary injunctions restraining the 1st and 2nd defendants from selling by public auction or otherwise interfering with Maisonette Number 2, Ivory Court Estate on subdivision Number 448 (Original Number 442/7), Mainland North. The 2nd respondent, a chargee, opposed the application through a replying affidavit deponed by its legal counsel Edna Omangi and raised a Preliminary Objection that the Environment and Land Court lacked jurisdiction, the dispute being commercial in nature, involving the 1st respondent's default on loan facilities and the exercise of the chargee's statutory power of sale after issuance of a 40-day statutory notice. The applicant contended the suit concerned specific performance of a 2015 sale agreement and thus fell within the ELC's jurisdiction. The court, E. K. Makori J, framed three issues: sustainability of the Preliminary Objection, the court's jurisdiction, and costs. Relying on the Mukisa Biscuit test, Owners of the Motor Vessel 'Lillian S', and Court of Appeal precedent including Thomas Mutuku Kasue and Phoenix of E.A. Assurance, the court found the predominant issue was the subsisting legal charge and the statutory power of sale, which belongs to the High Court; the specific performance claim and allegations of fraud and want of due diligence were secondary. Holding that a suit filed without jurisdiction is dead on arrival and cannot be transferred, the court downed tools and struck out both the application and the entire suit, with costs to the 2nd respondent.

Key legal issues

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01

Jurisdiction of the ELC over a dispute involving a registered charge and statutory power of sale alongside a claim for specific performance of a sale agreement

Holding

The ELC lacks jurisdiction; the predominant issue is the legal charge and the statutory power of sale, which the High Court should determine

Reasoning

The court found that although the applicant framed the claim as one for specific performance of a sale agreement, the original title was duly charged to the 2nd respondent, the chargee had defaulted and issued a 40-day statutory notice, and the injunction sought targeted the statutory power of sale. Following Court of Appeal precedent, such mortgage/charge-centred disputes belong to the High Court. Fraud and due diligence issues would be secondary and can be ventilated in the High Court.

p. 5
02

Whether a suit filed without jurisdiction should be transferred or struck out

Holding

It must be struck out, not transferred, since no competent suit exists capable of transfer

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 a court lacking jurisdiction cannot transfer an incompetent suit to a competent one, as parties cannot by consent confer jurisdiction, and the overriding objective cannot cure a jurisdictional defect.

p. 6

Legal principles established

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  • Where the predominant issue in a suit involves mortgages, charges and the exercise of statutory power of sale, it is the High Court, not the ELC, that has jurisdiction
  • A suit filed without jurisdiction cannot be transferred to a competent court; it must be struck out as it is dead on arrival

Court orders

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  1. 1.The pending Notice of Motion application dated 20th July 2023 is struck out
  2. 2.The entire suit is struck out with costs 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 (13)

  • 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
  • Cooperative Bank of Kenya v Patrick Kangethe Njuguna & 5 Others
    Msa. CA No. 83 of 2016
  • DJC v BKL
    (Civil Suit E021 of 2021) [2022] KEHC 10189 (KLR) (27 June 2022)
  • Mukisa Biscuit Manufacturing Co. Ltd v West End Distributors Ltd.
    (1969) EA 696
  • Hassan Ali Joho & Another v Suleiman Said Shahbal & 2 Others
  • 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] KEHC13352 (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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Cite this brief

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Cite this brief

Caselaw, "Murungi v Kanyi & another (Environment & Land Case E004 of 2023) [2024] KEELC 1823 (KLR)", Case Analysis (2024). Not stated in the judgment (ELC suit, Malindi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/1823/eng@2024-03-20

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