Mohammed v DIB Bank Kenya Limited & 3 others (Environment & Land Case E144 & E175 of 2023 (Consolidated)) [2025] KEELC 2849 (KLR)
The bottom line
#A Kenyan court ruled that once property is sold at auction, the borrower's rights are extinguished and injunctions cannot restore them.
What this practically means
#Executive summary
#Key legal issues
#Whether the Plaintiff established a prima facie case for interlocutory injunction
No prima facie case was established; the property had been validly sold at auction and the 2nd Defendant is registered proprietor
The court found the Plaintiff charged the suit land, defaulted and sought restructuring, and the 1st Defendant exercised its statutory power of sale, selling to the 2nd Defendant at public auction. The court applied Giella v Cassman Brown and Mrao Ltd v First American Bank, and authorities on exercise of statutory power of sale, holding that a chargor aggrieved by the conduct of the sale is limited to damages.
Whether the 3rd Defendant should be compelled to pay rent to court
Declined; the 2nd Defendant as registered owner is entitled to the rent
The court held that the 2nd Defendant, having purchased at auction and being the registered proprietor with an active tenancy with the 3rd Defendant, is entitled to receive rent. Whether the auction was properly conducted could only be determined after viva voce evidence, but on the facts the mandatory-type order sought could not issue.
Legal principles established
#- Once property is knocked down and sold at a public auction in exercise of a chargee's statutory power of sale, the chargor's equity of redemption is extinguished and the remedy is in damages
- If a party fails to establish a prima facie case, irreparable injury and balance of convenience need not be considered
Court orders
#- 1.Notice of Motion application dated the 1st November 2023 dismissed
- 2.Costs of the application awarded to the Defendants
- Jurisdiction invoked
- Article 159(2)(d) of the Constitution of Kenya 2010; Sections 1A, 1B and 3A of the Civil Procedure Act; Order 40 Rule 1 and Order 51 Rule 1 of the Civil Procedure Rules
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Mohammed v DIB Bank Kenya Limited & 3 others (Environment & Land Case E144 & E175 of 2023 (Consolidated)) [2025] KEELC 2849 (KLR)", Case Analysis (2025). ELC Case No. E175 of 2023 (Notice of Motion dated 1st November 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/2849/eng@2025-03-25
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.