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ELCStruck OutELC Case E017 of 2023 (Naivasha) – as per suit herein; applications dated 2nd August 2023, 28th August 2023 and 18th September 2023· [2024] KEELC 5306 (KLR)

Equip Agencies Limited & another v Daniel Njuguna Gitau, Lucas Kiiru Ngigi, Kelvin Mureithi & Mary Njoroge (Sued as Office Bearers of Gilgil Total Investors Self Help Group) & 4 others (Environment & Land Case 89 of 2024) (Environment and Land) [2024] KEELC 5306 (KLR)

Environment and Land Court
18 July 2024
14,256 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's Environment and Land Court struck out a property dispute as a repeat of already-decided cases, and refused eviction orders sought without a full trial.

What this practically means

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Executive summary

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Three applications came before the Environment and Land Court at Naivasha for determination. The Plaintiffs (Gilgil Treatment Industries Limited and the company operating the treatment factory) sought temporary injunctions and prohibitory orders under Section 106 of the Land Registration Act to restrain further alienation of L.R No. Gilgil Township Block 2/210, contending that the 5th Defendant bank had fraudulently sold the charged property at gross undervalue in a flawed public auction on 24th January 2019 to the 1st Defendant, an alleged amorphous self-help group, without proper valuation including machinery worth over Kshs. 120,000,000/=. The 1st and 3rd Defendants and the 2nd and 5th Defendants each applied to strike out the suit as res judicata, relying on a long line of prior proceedings and a Deed of Settlement dated 10th June 2021, and the 1st and 3rd Defendants also sought vacant possession and eviction. The court framed two issues: res judicata and, if negative, entitlement to injunction. Reviewing prior rulings including Equip Agencies Limited v I&M Bank and judgments on the Deed of Settlement, and applying Section 7 of the Civil Procedure Act as explained by the Supreme Court in John Florence Maritime and Dina Management, the court found the issues, parties and subject matter substantially identical to matters already finally determined by competent courts and never overturned on appeal. The Plaintiffs' application dated 2nd August 2023 was dismissed and the entire suit struck out with costs as res judicata; the interim injunctions granted on 7th August 2023 and extended on 21st August 2023 were set aside; the Defendants' applications of 28th August and 18th September 2023 partially succeeded. The eviction limb was, however, struck out because no substantive suit survived to support an executable decree, and eviction orders cannot issue in a notice of motion, per Tatecoh Housing. Judgment delivered on 18th July 2024 by M.C. Oundo, E&L Judge.

Key legal issues

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01

Whether the suit and application were res judicata

Holding

Yes – the issues, parties and subject matter were substantially the same as in previous suits and applications determined by competent courts, which were not overturned on appeal

Reasoning

The court reviewed the chain of litigation (Naivasha HCC No. 9 of 2016, Nakuru ELC No. 166 of 2017, Naivasha HCC No. 6 of 2018, HCC No. 87 of 2019 and rulings on the Deed of Settlement dated 10th June 2021). It found the sale, the auction and ownership of the suit property had been determined by competent courts, judgments remained unappealed, and the parties were similar or litigating under the same title, satisfying Section 7 of the Civil Procedure Act.

p. 22
02

Whether eviction/vacant possession orders could issue on the 1st and 3rd Defendants' application

Holding

No – the limb was struck out because striking out the Plaint left no substantive suit supporting an executable decree, and such orders cannot be granted in an interlocutory application

Reasoning

The court held that once the Plaint is struck out, no decree capable of execution under Order 22 of the Civil Procedure Rules exists. Relying on Tatecoh Housing, it held that eviction orders require a full hearing in a substantive suit, so the relief sought was final relief improperly sought in a notice of motion.

Legal principles established

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  • For res judicata to apply, the elements of a former final judgment on merit by a competent court and identical parties, subject matter and cause of action are conjunctive
  • Parties cannot evade res judicata by adding parties or causes of action in a subsequent suit
  • Substantive orders such as eviction cannot be granted in a notice of motion without a substantive suit

Court orders

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  1. 1.The Plaintiffs' application dated 2nd August 2023 is dismissed and the entire suit struck out with costs for being res judicata
  2. 2.The interim orders of injunction granted on 7th August 2023 and extended on 21st August 2023 are set aside
  3. 3.The applications dated 28th August 2023 and 18th September 2023 partially succeed
  4. 4.The limb of the application dated 18th September 2023 seeking vacant possession and eviction of the Plaintiffs is denied/struck out

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 1B, 3A, 7, 59, 63(e), 80
  • Civil Procedure RulesOrder 40 Rules 1(a), 2, 4, 7, 10; Order 45 Rules 1(a & b); Order 2 Rule 15; Order 22; Order 51 Rules 1, 14(1)
  • Land ActSections 82, 84, 9(2 & 3), 90, 96, 97, 98, 99(3) & (4), 103, 104(3), 105, 106, 152A, 152B, 152E, 152F, 152G
  • Land Registration ActSections 56, 68, 69, 70, 106, 107
  • Limitation of Actions ActSection 4
  • Valuers Act(licensing provisions referred to generally)
  • Constitution of KenyaArticle 162(2)
  • Environment and Land Court ActSection 13(2)

Cases cited (40)

  • Giella vs. Cassman Brown
    (1973) EA 358
  • Mrao Limited Vs. First American Bank of Kenya
    (2003) KLR 125
  • Michael Gitere & another v Kenya Commercial Bank Limited
    [2018] eKLR
  • Kibundi v Mukobwa & another
    [1993] eKLR
  • Super Drill International Limited v Sidian Bank Limited
    [2021] eKLR
  • Nyali Construction & Ele v Barclays Bank Limited
    [2015] eKLR - Civil Case 315 of 2007
  • Equip Agencies Limited v I & M Investment Bank Limited & 2 others
    [2019] eKLR
  • John Major Mukenya v Clerk-County Assembly of Bungoma & 5 others; Florence Fulano Wekesa & 4 others (Interested Parties)
    [2020] eKLR
  • Kenya Commercial Bank Ltd v Osede
    [1982] eKLR
  • Mbuthia v Jimba Credit Finance Corporation & another
    [1988] eKLR
  • Koileken ole kipolonka orumoi v Mellech Engineering & Construction Limited & 2 others
    [2015] eKLR
  • Cycle Importers Limited v Kalson Properties Limited & 3 Others
    [2009] eKLR
  • Kanthilal Bhundia t/a Niki Wear & 2 others v Joseph Mwaniki Ndegwa & another
    [2014] eKLR
  • Waithaka v Industrial and Commercial Development Corporation
    [2001] eKLR
  • Joseph Mbugua Gichanga v Co-operative of Kenya Ltd
    [2005] eKLR
  • Paul Gitonga v Gathuthia Tea Factory Company Ltd & 2 others
    [2016] eKLR
  • Dhaliwal Hotels Limited v Southern Credit Banking Corporation
  • Proto Energy Limited v Hashi Energy Limited
    [2019] eKLR
  • Triton Petroleum Ltd v Charter House Bank Ltd
    [2008] eKLR
  • Ngati & 4 others v Mutie & 7 others
    (Environment and Land Case Civil Suit 63 of 2018) [2022] KEELC 13486 (KLR)
  • Mwalungu Mwambui Nyiyo & 201 others v Total Oil Products (East Africa) Limited & another
    [2021] eKLR
  • Taj Villas Management Limited v Taj Mall Limited
    [2018] eKLR
  • Koinange Investments and Developments Limited vs Nairobi City Council & 3 Others
    [2009] eKLR
  • Patrick Ngumba Mweni v Hellen Jepkosgei Kiplangat & 2 others
    [2007] eKLR
  • Ajuoga John Edwin & another v George Odero Malano & another
    [2015] eKLR
  • Dunlop Pneumatic Tyre Co. Ltd v Selfridge & Co. Ltd
    [1915] AC 847
  • Sarah v Multiple Hauliers (E.A.) Limited & another
    (Environment & Land Case 12 of 2021) [2022] KEELC 3807 (KLR)
  • William Koross (Legal personal Representative of Elijah C.A. Koross) v Hezekiah Kiptoo Komen & 4 others
    [2015] eKLR
  • Equip Agencies Limited v I & M Bank Limited
    [2017] eKLR
  • Gilgil Treatment Industries Ltd v I & M Bank Limited & another
    [2018] eKLR (Nakuru ELC No. 166 of 2017)
  • Gilgil Treatment v I & M Bank Limited & another
    [2018] eKLR (Naivasha Civil Case No. 6 of 2018)
  • Gilgil Treatment v I & M Bank Limited & another
    [2018] eKLR (Naivasha Civil Case No. 9 of 2018)
  • Equip Agencies Limited v I&M Investment Bank Limited & 2 others
    [2019] eKLR (HCC No. 87 of 2019, ruling of 26th July 2019)
  • Equip Agencies Limited v I & M Investment Bank & 2 others
    Civil Appeal (Application) No. 412 of 2019 [2019] eKLR
  • Equip Agencies Limited v I & M Bank Limited & 2 others; Attorney General (Garnishee)
    (Civil Case 87 of 2019) [2023] KEHC 18549 (KLR)
  • John Florence Maritime Services Ltd & Another v Cabinet Secretary Transport and Infrastructure & 3 Others
    Petition 17 of 2015 (2021) KESC 39 KLR (Civ)
  • Dina Management Limited v County Government of Mombasa & 5 others
    (Petition 8 (E010) of 2021) [2023] KESC 30 (KLR)
  • Omondi Vs National Bank of Kenya Limited & Others
    (2001) EA 177
  • Njangu vs Wambugu
    Nairobi HCCC No.2340 of 1991 (unreported)
  • Tatecoh Housing and Co-op Sacco Ltd Vs Qwetu Sacco Ltd
    (2021) eKLR
Jurisdiction invoked
Article 162(2) of the Constitution and Section 13(2) of the Environment and Land Court Act (invoked by the Plaintiffs); jurisdiction challenged on res judicata grounds under Section 7 of the Civil Procedure 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, "Equip Agencies Limited & another v Daniel Njuguna Gitau, Lucas Kiiru Ngigi, Kelvin Mureithi & Mary Njoroge (Sued as Office Bearers of Gilgil Total Investors Self Help Group) & 4 others (Environment & Land Case 89 of 2024)  (Environment and Land) [2024] KEELC 5306 (KLR)", Case Analysis (2024). ELC Case E017 of 2023 (Naivasha) – as per suit herein; applications dated 2nd August 2023, 28th August 2023 and 18th September 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/5306/eng@2024-07-18

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