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ELCDismissed· [2024] KEELC 5149 (KLR)

Bahati Ridge Management Phase 1A Ltd v Mbote (Environment and Land Appeal 21 of 2020) [2024] KEELC 5149 (KLR)

High Court of Kenya
4 July 2024
3,160 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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The Respondent/Applicant, Kennedy Mbote, moved the Court by Notice of Motion dated 20th February, 2024 seeking stay of execution of the ruling on taxation delivered on 21st July, 2022, a declaration that he had paid and settled the decretal amount in full, an order that Compliance Auctioneers tax their costs of Kshs.49,000/- raised on a proclamation notice, and costs. He asserted that three cheques settling Kshs.149,100/- had been drawn, that the auctioneer's fees were exorbitant and contrary to the Auctioneers Rules/Remuneration Order, and that attachment of assets forming part of his matrimonial home would cause irreparable loss. The Appellant/Respondent, through Margaret W. Kibe, opposed the application, contending that the taxed costs of Kshs.147,600/- remained unpaid, that the cheques were delivered belatedly and rejected (the current cheque bearing an alteration), and that the application was misleading and perjurious. The court framed three issues: compliance of the auctioneer's fees with the Auctioneers Rules, the applicant's entitlement to the orders sought, and costs. Applying the Fourth Schedule to the Auctioneers Rules to the proclaimed value of Ksh.427,000/-, the court reduced the proper auctioneer's charges to Kshs.32,890/-, finding an overcharge of Kshs.16,110/-. Relying on Nyatera v Nyakundi on Order 42 Rule 6, the court found the stay conditions unsatisfied, held that the applicant had not paid the decretal sum and had not approached the court with clean hands, and refused to compel acceptance of piecemeal payment. The application was dismissed entirely with costs, with liberty to execute for Ksh.181,890/-.

Key legal issues

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01

Whether the auctioneer's fees of Kshs.49,000/- charged by Compliance Auctioneers complied with the Auctioneers Rules/Remuneration Order

Holding

The fees were excessive; the correct chargeable amount was Kshs.32,890/-, an overcharge of Kshs.16,110/-

Reasoning

Paragraph 4 and 5 of Part II of the Fourth Schedule to the Auctioneers Rules band charges by value of goods attached. On a proclaimed value of Ksh.427,000/-, the first Kshs.100,000/- attracts 10% (Kshs.10,000/-) and the balance Kshs.327,000/- attracts 7% (Kshs.22,890/-), totalling Kshs.32,890/-. Charging Ksh.49,000/- breached paragraph 5 of Part II of the Fourth Schedule.

p. 6
02

Whether the Applicant had settled the decretal amount and was entitled to stay of execution

Holding

The Applicant had not paid the decretal amount; the cheques were rejected (the current cheque bearing an alteration) and stay was refused on merits and for unclean hands

Reasoning

The applicant did not meet the Order 42 Rule 6 conditions (sufficient cause, substantial loss, security). The court found the claim of payment misleading, held the applicant had not approached the court with clean hands, and declined to compel the decree-holder to accept piecemeal payment. Only the revision of auctioneer's fees succeeded.

p. 6

Legal principles established

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  • Proclamation of movable goods under the Auctioneers Rules is legally and effectively an attachment
  • Auctioneer's charges for attachment should be based on the value of the goods attached and not on the decretal sum
  • An applicant for stay of execution must show sufficient cause, substantial loss and willingness to furnish security
  • A litigant who does not approach the court with clean hands is denied equitable relief

Court orders

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  1. 1.Prayer No. (3) of the Notice of Motion dismissed entirely with costs
  2. 2.The whole Notice of Motion dated 20th February, 2024 dismissed entirely with costs to the Appellant/Respondent
  3. 3.Auctioneer's charges revised and fixed at Ksh.32,890/- in place of the Ksh.49,000/- claimed
  4. 4.Determination that the Applicant owes the Appellant/Respondent Ksh.181,890/- (decretal sum of Kshs.149,100/- plus revised auctioneer's charges)
  5. 5.The Appellant/Respondent granted liberty to execute against the Respondent/Applicant for the total amount of Ksh.181,890/-

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 1B, 3A, 63(e)
  • Civil Procedure RulesOrder 22 Rules 18 and 22; Order 51 Rule 1
  • Civil Procedure RulesOrder 42 Rule 6(1) and (2)
  • Constitution of KenyaArticles 47, 50(1), 159(2)(a) and (d)
  • Auctioneers RulesRules 12, 14; paragraphs 4 and 5 of Part II of the Fourth Schedule

Cases cited (5)

  • Ecobank Kenya Limited V Bobbin Limited & 2 Others
    [2014] eKLR
  • George Arab Muli Mwalabu V Senior Resident Magistrate Kangundo & 2 Others; Festus Mbai Mbonye (Interested Party)
    [2019] eKLR
  • Matattiele Municaplity & Others V President of the Republic of South Africa & others (1)
    (CCT73/05) (2006) ZACC 2; 2006 (5) BCLR (CC); 2006(5) SA 47 (CC)
  • National Industrial Credit Bank Limited v S. K. Ndegwa Auctioneer
    [2005] eKLR
  • Nyatera v Nyakundi
    (Civil Appeal E033 of 2022) [2023] KEHC 3086 (KLR) (16 March 2023)
Jurisdiction invoked
Sections 1A, 1B, 3A and 63(e) of the Civil Procedure Act; Order 22 Rules 18 and 22; Order 51 Rule 1 of the Civil Procedure Rules; Articles 47, 50(1), 159(2)(a) and (d) of the Constitution

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, "Bahati Ridge Management Phase 1A Ltd v Mbote (Environment and Land Appeal 21 of 2020) [2024] KEELC 5149 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/5149/eng@2024-07-04

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