[2019] KEHC 3830 (KLR)
The court found that the Plaintiff was entitled to orders for the sale of Nairobi Block 76/516 Buruburu to satisfy the decree, as the Defendants had not responded to the application or valuation. However, the court held that execution could not proceed solely against the 1st Defendant's other properties, as the...
Source-derived case information.
- Citation
- [2019] KEHC 3830 (KLR)
- Parties
- Plaintiff: Dataguard Distributors Limited; Defendant: Virginia Njeri Kigo; Defendant: Valz Distributors; Defendant: Vidi Fabricators Limited; Defendant: Nairobi Tyres Mart Company Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Civil Suit 641 of 2012
- Procedural Posture
- Civil Suit / Ruling on Notice of Motion for Sale of Attached Property
- Outcome
- Application partly allowed; sale of Nairobi Block 76/516 Buruburu permitted, but execution against other properties declined.
- Judges
- GL Nzioka
- Legal Topics
- Execution of Decree, Attachment of Property, Sale by Public Auction, Valuation of Property
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Dataguard Distributors Limited
Plaintiff
Virginia Njeri Kigo
Defendant
Valz Distributors
Defendant
Vidi Fabricators Limited
Defendant
Nairobi Tyres Mart Company Limited
Defendant
Procedural Posture
Civil Suit / Ruling on Notice of Motion for Sale of Attached Property
Legal Issues
- 1 Whether the court should grant orders for the sale of Nairobi Block 76/516 Buruburu to satisfy the decree.
- 2 Whether execution can proceed solely against the 1st Defendant's properties when judgment was entered against all Defendants.
- 3 Whether the sale process must comply with procedural safeguards to protect the interests of the parties.
Ratio Decidendi
The court found that the Plaintiff was entitled to orders for the sale of Nairobi Block 76/516 Buruburu to satisfy the decree, as the Defendants had not responded to the application or valuation. However, the court held that execution could not proceed solely against the 1st Defendant's other properties, as the judgment was entered against all Defendants and did not specify joint and several liability. The court emphasized that the sale must be conducted transparently, in the presence of a court officer, and with adequate public notice to ensure fairness and protect the interests of the parties. Any loss resulting from fraud or dishonesty in the sale process would be borne by the...
Court Disposition
Application partly allowed; sale of Nairobi Block 76/516 Buruburu permitted, but execution against other properties declined.
Orders
- The prohibitory order over Nairobi Block 76/516 Buruburu is lifted.
- The Plaintiff is authorized to sell Nairobi Block 76/516 Buruburu to satisfy the decree.
Full Case Text
Judgment text and source record
25 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
MILIMANI COMMERCIAL& TAX DIVISION
CIVIL SUIT NO. 641 OF 2012
DATAGUARD DISTRIBUTORS LIMITED...PLAINTIFF/DECREE HOLDER
VERSUS
VIRGINIA NJERI KIGO.............................................................1ST DEFENDANT
VALZ DISTRIBUTORS...............................................................2ND DEFENDANT
VIDI FABRICATORS LIMITED................................................3RD DEFENDANT
NAIROBI TYRES MART COMPANY LIMITED....................4TH DEFENDANT
RULING
1. The Plaintiff’s notice of motion dated 7th December 2017 was heard and a determination thereon made on 30th April 2019. In the said decision, the court made it clear that, the only property that was the subject of the order sought to lift the prohibitory was property known as; Nairobi Block 76/516 Buruburu. The other properties mentioned at prayer (2) were excluded.
2. Upon grant of the order to lift the prohibitory order, the court ordered that each party do file an independent valuation of the suit property before an order for sale of the same is issued. The Plaintiff subsequently filed three reports. The Defendant did not
3. The property L.R. No. Nairobi Block 76/516 has been given a value Kshs. 11,000,000 at the market value. However, the decree amount is stated to be Kshs. 43,000,000. The Defendant/Respondents have been given an opportunity to be heard on the application and/or the valuation and apparently, there has been no response. In that case, I find that the orders sought to enable the sale of the property Nairobi Block 76/516 are warranted and I grant the same as prayed for, under prayer (1) and (2) of the notice of motion application dated 7th December 2017 as it relates to the Buruburu property.
4. However, the Applicant ensures that the sale is properly conducted as it is answerable to the legal proprietor of the property to conduct the sale in an honest and transparent manner. The Applicant must in that regard, ensure the sale is conducted in the presence of an officer of the court. In that regard, the Applicant shall laise with the Honourable Deputy Registrar for the appointment of the officer. The auction must be conducted in public with proper and adequate public notice/advertisements necessary to facilitate a “decent sale”. Any intentional act of fraud, dishonest and/or any act resulting in the loss to the Respondent shall be borne by the Applicant and/or jointly with the auctioneer.
5. Finally, the other two properties which the Applicant intends to sale evidently belong to Virginia Njeri Kigo. She is the 1st Defendant herein. The suit was filed against four Defendants, the other three are artificial entities being limited liability companies. As much as the 1st Defendant did not oppose the sale of these properties, the Applicants have not satisfied the court why they want to execute the judgment against the 1st Defendant alone. In the decree extracted and signed by the Honourable Deputy Registrar on 27th June 2017, it is clearly stated that Judgment is “entered for the Plaintiff against the 1st, 2nd, 3rd and 4th Defendants for the sum of Kshs. 43,000,000 together with interest and the costs of the suit.
6. The liability is not expressed to be jointly and severally as against and between the Defendants. Neither can a natural individual be liable for the company’s debt. I decline to grant prayer (2) of the subject application as it relates to the properties in Nyandarua and Syokimau Estate.
7. It is so ordered.
Dated, delivered and signed in an open court this 30th September 2019.
G.L. NZIOKA
JUDGE
In the presence of;
Mr. Gachie for the Plaintiff/Applicant
Ms. Kago for the Defendants
Dennis ---------------------------Court Assistant