[2020] KEELC 1402 (KLR)

[2020] KEELC 1402 (KLR)

The court found that while the Plaintiff's application for interim measures of protection sought the same relief as the plaint, the suit should not be struck out because the Arbitration Rules require a suit to exist for such applications. The court held that the Concession Agreement and the ongoing ICC arbitration...

Source-derived case information.

Citation
[2020] KEELC 1402 (KLR)
Parties
Plaintiff: Farmers Trust Limited; Defendant: The Registered Trustees of Agricultural Society of Kenya
Court
Environment and Land Court
Court Station
Environment and Land Court at Nairobi
Jurisdiction
Kenya
Case Number
Environment & Land Case 250 of 2019
Procedural Posture
Environment and Land Court Suit / Ruling on Application for Interim Injunction and Application to Strike Out Suit
Outcome
Plaintiff's application for interim injunction granted in part; Defendant's application to strike out suit dismissed; each party to bear its own costs.
Legal Topics
Concession Agreements, Arbitration Interim Measures, Specific Performance, Termination of Contracts, Injunctive Relief, Land Leases
Source Language
en
Land and Property Commercial and Corporate Alternative Dispute Resolution Concession Agreements Arbitration Interim Measures Specific Performance Termination of Contracts Injunctive Relief +1 more

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Summary, issues, holding and outcome

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Parties

Farmers Trust Limited

Plaintiff

The Registered Trustees of Agricultural Society of Kenya

Defendant

Procedural Posture

Environment and Land Court Suit / Ruling on Application for Interim Injunction and Application to Strike Out Suit

  1. 1 Whether the suit should be struck out on the basis that the application for interim measures of protection would dispose of the main suit.
  2. 2 Whether the Plaintiff is entitled to an interim injunction restraining the Defendant from dealing with the suit properties pending arbitration.
  3. 3 Whether the Defendant's actions threaten the subject matter of the arbitration and the Plaintiff's rights under the Concession Agreement.

Ratio Decidendi

The court found that while the Plaintiff's application for interim measures of protection sought the same relief as the plaint, the suit should not be struck out because the Arbitration Rules require a suit to exist for such applications. The court held that the Concession Agreement and the ongoing ICC arbitration were not in dispute, and that the subject matter of the arbitration—whether the Defendant lawfully terminated the Concession Agreement and the reliefs due—was under threat from the Defendant's actions. The court determined that if the Defendant were allowed to continue dealing with the properties, specific performance of the Concession Agreement could be rendered impossible,...

Court Disposition

Plaintiff's application for interim injunction granted in part; Defendant's application to strike out suit dismissed; each party to bear its own costs.

Orders

  • An interim injunction is granted restraining the Defendant, its agents and servants from leasing, licensing, transferring, developing, parting with possession, vesting rights on any third party or otherwise changing the character of the land specified in the First Schedule to the Concession Agreement without the...
  • The injunction does not apply to reserved sites or the portion of the Nairobi showground within Jamhuri Park on which the Expo Hall has been developed.