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ELCPartially AllowedELC E001 of 2024· [2024] KEELC 6971 (KLR)

Mwaura v Irimu & 3 others (Environment & Land Case E001 of 2024) [2024] KEELC 6971 (KLR)

Environment and Land Court
17 October 2024
1,797 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This is a ruling of the Environment and Land Court at Kajiado (L. Komingoi, J) on the Plaintiff's Notice of Motion dated 15th January 2024 seeking temporary injunctions restraining the 2nd and 3rd Defendants from advertising, selling or otherwise dealing with parcel Ngong/Ngong/16744 in exercise of the 2nd Defendant's statutory power of sale, and a prohibitory injunction against the 3rd and 4th Defendants and the Land Registrar, Kajiado North. The Plaintiff claimed to be the legal and rightful owner of the suit property, on which he resides and has erected rental apartments, and alleged the property was fraudulently transferred to the 1st Defendant, who later charged it to the 2nd Defendant bank. The 1st and 3rd Defendants did not enter appearance; the 2nd Defendant opposed, asserting due diligence and a competing title in the 1st Defendant's name; the 4th Defendant declined to participate. Applying the Nguruman Ltd principles, the court found the Plaintiff had established a prima facie case with a probability of success, that he would suffer irreparable injury losing his home and income-generating property which damages could not compensate, and that the balance of convenience favoured him. It held the 1st Defendant's unchallenged title would be treated as fraudulently acquired, and that the bank ought to have conducted due diligence before lending. The application was allowed: temporary injunctions were issued restraining the 2nd and 3rd Defendants from advertising, selling, transferring, leasing, charging or disposing of the suit property pending trial, with costs of the application to abide the outcome of the main suit.

Key legal issues

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01

Whether the Applicant established a prima facie case with a probability of success

Holding

Yes; the Plaintiff demonstrated he is the legal and rightful owner of the suit property which was fraudulently transferred to the 1st Defendant without his consent

Reasoning

The court found the Plaintiff proved he acquired the suit property, took possession, and erected a family house and rental apartments. He never transferred it to the 1st Defendant. The 1st Defendant, though served, neither entered appearance nor responded, so his competing title would be treated as fraudulently acquired. This satisfied the first Nguruman hurdle.

p. 4
02

Whether the Applicant would suffer irreparable injury not compensable by damages

Holding

Yes; the Plaintiff resides on the suit property with his family and derives income from rental apartments there, so losing it would cause irreparable harm

Reasoning

The 2nd Defendant was in the process of exercising its statutory power of sale by public auction. The court held the Plaintiff was likely to lose his home and rental properties, harm that an award of damages could not adequately compensate. The court also noted the burden of due diligence lay on the 2nd Defendant before taking the charge.

p. 4
03

Where the balance of convenience lies

Holding

The balance of convenience tilts in favour of the Plaintiff as the legal and rightful owner in possession

Reasoning

Having found a prima facie case and irreparable injury, the court found the balance of convenience favoured the Plaintiff, who is the legal and rightful owner of the suit property and in control and possession of it. All three Nguruman hurdles were surmounted, warranting the temporary injunctions granted.

p. 5

Legal principles established

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  • An applicant for an interlocutory injunction must sequentially establish a prima facie case with a probability of success, irreparable injury not compensable in damages, and that the balance of convenience lies in his favour
  • A defendant duly served who fails to enter appearance or respond risks having an adverse finding against his title on the pleadings

Court orders

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  1. 1.A temporary injunction restraining the 2nd & 3rd Defendants/Respondents, their agents and servants, from advertising, selling and/or in any manner dealing with the suit property known as Ngong/Ngong/16744 vide a public auction or private treaty in exercise of the 2nd Defendant's Statutory Power of Sale pending the hearing and determination of the suit
  2. 2.A temporary injunction restraining the 2nd and 3rd Defendants/Respondents, their agents, employees or persons claiming on their behalf, from transferring, leasing, creating a further charge or disposing of the suit property known as Ngong/Ngong/16744 pending the hearing and determination of the suit
  3. 3.Costs of the Application to abide the outcome of the main suit

Authorities

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Legislation

  • Constitution of KenyaArticle 40
  • Constitution of KenyaArticle 159(2)(d)
  • Civil Procedure ActSections 1A, 1B, 3A
  • Civil Procedure Act Cap 21Section 63(c)
  • Civil Procedure Rules, 2010Order 40 Rules 1 and 2

Cases cited (8)

  • Giella Vs. Cassman Brown & Co. Ltd
    (1973) EA 358
  • Mrao Ltd Vs. First American Bank of Kenya & 2 others
    (2003) eKLR
  • Nguruman Ltd Vs. Jan Bonde Nielsen & 2 Others
    (2014) eKLR
  • Nicholas Muchina Muiruri & Another Vs. Salesio Kiarie Thathi & 4 Others
    (2021) eKLR
  • Geoffrey Wahome Muotia Vs. National Bank of Kenya Limited
    (2020) eKLR
  • Ooko Vs. Barclays Bank of Kenya Ltd
    (2002) eKLR
  • William Arusei Vs. Shem Lagat
    (2018) eKLR
  • Pius Kipchirchir Kogo Vs. Frank Kimeli Tenai
    (2018) eKLR
Jurisdiction invoked
Articles 40 and 159(2)(d) of the Constitution of Kenya; Sections 1A, 1B, 3A and 63(c) of the Civil Procedure Act; Order 40 Rules 1 and 2 of the Civil Procedure Rules, 2010

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, "Mwaura v Irimu & 3 others (Environment & Land Case E001 of 2024) [2024] KEELC 6971 (KLR)", Case Analysis (2024). ELC E001 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/6971/eng@2024-10-17

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