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MagistrateStruck OutNot stated in the judgment as provided· [2024] KEMC 32 (KLR)

Muithya v Kenya Women Microfinance Bank Plc (Environment & Land Case E091 of 2023) [2024] KEMC 32 (KLR)

Magistrates' Court
18 April 2024
1,780 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Machakos court struck out a bid to stop a land sale because only Kenya's High Court can hear disputes over a bank's statutory power of sale.

What this practically means

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Executive summary

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The Applicant moved the Court by Notice of Motion dated 15th November 2023 seeking a temporary injunction restraining the Respondent from advertising for sale, disposing of, selling or otherwise interfering with title number Machakos/Kiandani/31575, on the ground that the statutory notice of sale issued was inadequate. The Applicant admitted defaulting on the loan but contended the sale would be unlawful. The Respondent opposed, exhibiting the charge and further charge over the suit property and demand letters dating from 2020 and 2021, asserting the Applicant had failed to service the facility since 2020. Before addressing the merits, the Court raised the question of its own jurisdiction suo motu, reasoning that jurisdiction is not a procedural technicality curable under Article 159(2)(d) and cannot be conferred by consent or waiver. Examining its jurisdiction under Articles 162(4) and 169 of the Constitution and sections 6 to 10 of the Magistrates' Courts Act, 2015, the Court held that although the matter was filed as a Land and Environment Case, its true character is commercial: the dispute questions the exercise of the chargee's statutory power of sale following default. Following Co-operative Bank of Kenya Limited v Patrick Kangethe Njuguna, the Court held that jurisdiction over such disputes is reposed in the High Court. The suit, having been filed before a court of incompetent jurisdiction, was incompetent and void ab initio. On 18th April 2024 the Court struck out both the suit and the application, awarding costs to the Defendant/Respondent.

Key legal issues

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01

Whether the Magistrates' Court had jurisdiction over a dispute questioning the exercise of statutory power of sale

Holding

No - such disputes are commercial in character and fall within the exclusive jurisdiction of the High Court under Article 165(3)

Reasoning

Although filed as a Land and Environment Case, the court found the real dispute concerned the adequacy of the statutory notice of sale and the chargee's exercise of statutory power of sale following default. Following Co-operative Bank of Kenya Ltd v Patrick Kangethe Njuguna, jurisdiction over such accounting/charge disputes lies with the High Court. The Magistrates' Court's jurisdiction, defined by Parliament under Article 169(2) via sections 6-10 of the Magistrates' Courts Act, 2015, does not extend to such commercial disputes.

p. 3
02

Whether lack of jurisdiction can be cured by consent or waiver

Holding

No - jurisdiction cannot be conferred by consent and orders made without jurisdiction are void, not voidable

Reasoning

Relying on Sir Ali Salim v Sharifi Mohammed Sharray and the Owners of Motor Vessel 'Lillian S' line of authority, the court held that judgments rendered without jurisdiction are nullities; jurisdiction flows from the Constitution or legislation and cannot be expanded by judicial craft or party consent.

p. 2

Legal principles established

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  • Jurisdiction may be raised suo motu by the court and is not a procedural technicality curable under Article 159(2)(d)
  • A court without jurisdiction must down its tools immediately upon so finding
  • Jurisdiction over disputes seeking to question the exercise of a chargee's statutory power of sale is reposed in the High Court, not the ELC or subordinate courts

Court orders

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  1. 1.The suit is struck out for want of jurisdiction
  2. 2.The Notice of Motion dated 15th November 2023 is struck out
  3. 3.Costs to the Defendant/Respondent

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 2 and 2(2)
  • Constitution of Kenya, 2010Article 162 and 162(4)
  • Constitution of Kenya, 2010Article 165(3)
  • Constitution of Kenya, 2010Article 169, 169(1)(a) and 169(2)
  • Constitution of Kenya, 2010Article 23(2)
  • Judicature ActSection 3
  • Magistrates' Courts Act, 2015Preamble; sections 6, 7, 8, 9, 10
  • Magistrates' Courts Act (repealed), Cap 10
  • ELC ActSection 13
  • Land ActSection 150

Cases cited (21)

  • Owners of Motor Vessel "Lillian S" vs. Caltex Oil (K) Ltd
    [1989] KLR 1
  • Samuel Kamau Macharia vs. Kenya Commercial Bank Ltd & 2 Others
    [2012] eKLR
  • In the Matter of Interim Independent Electoral Commission
    [2011] eKLR
  • Sir Ali Salim vs. Sharifi Mohammed Sharray
    1938 KLR
  • Geofirey K. Sang vs. Director of Public Prosecutions & 4 others
    [2020] eKLR
  • Chogley vs. The East African Bakery
    [1953] 26 KLR 31
  • Re: Hebtulla Properties Ltd.
    [1979] KLR 96; [1976-80] 1 KLR 1195
  • Warburton vs. Loveland
    [1831] 2 DOW & CL. (HL) 489
  • Lall vs. Jeypee Investments Ltd
    [1972] EA 512
  • Attorney General vs. Prince Augustus of Hanover
    [1957] AC 436
  • Republic vs. Kenya Revenue Authority Ex Parte Aberdare Freight Services Ltd & 2 Others
    [2004] 2 KLR 530
  • Re Hardial Singh and Others
    [1979] KLR 18; [1976-80] 1 KLR 1090
  • Co-operative Bank of Kenya Limited vs. Patrick Kangethe Njuguna & 5 others
    [2017] eKLR
  • Muvokanza Limited vs. Muri Mwaniki Thige & Kageni LLP & another
    [2022] KEELC 2275 (KLR)
  • Alphose Yankulije vs. One Twiga Road Limited & 2 others
    [2019] eKLR
  • Private Development Co. LTD vs. Rebecca Ngonyo & 2 other
    [2019] eKLR
  • Innocent Enoce Omboko vs. County Assembly of Busia & another
    [2021] eKLR
  • Alice Chelangat Ngeny vs. National Bank of Kenya Ltd
    [2020] eKLR
  • Thomas Mutuku Kasue vs. Housing Finance Company Ltd (HFC) & another
    [2021] eKLR
  • Samuel Gikuru & 2 others vs. HFC Limited
    [2020] eKLR
  • Martin Luther Mc Were vs. James Mabango Ambundo
    [2022] eKLR
Jurisdiction invoked
Articles 162(4), 169(1)(a) and 169(2) of the Constitution; Magistrates' Courts Act, 2015 (sections 6-10)

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, "Muithya v Kenya Women Microfinance Bank Plc (Environment & Land Case E091 of 2023) [2024] KEMC 32 (KLR)", Case Analysis (2024). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2024/32/eng@2024-04-18

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