[2024] KEHC 2869 (KLR)

[2024] KEHC 2869 (KLR)

The court found that the applicant had established a prima facie case with a likelihood of success, as he is the registered owner of the suit properties and has raised unresolved allegations of irregularities and fraud in the loan account, which the respondent has not substantively addressed. The court determined...

Source-derived case information.

Citation
[2024] KEHC 2869 (KLR)
Parties
Applicant: Johnson Muigai Mungai t/a Subukia Heshima Hardware; Respondent: Faulu Microfinance Bank Limited
Court
High Court
Court Station
High Court at Nakuru
Jurisdiction
Kenya
Case Number
Civil Appeal E349 of 2023
Procedural Posture
Civil Appeal / Ruling on Application for Interlocutory Injunction Pending Appeal
Outcome
Application allowed; interlocutory injunction granted.
Judges
HM Nyaga
Legal Topics
Interlocutory Injunctions, Statutory Power of Sale, Loan Account Disputes, Abuse of Court Process, Prima Facie Case, Irreparable Harm
Source Language
en
Civil Procedure Banking and Finance Interlocutory Injunctions Statutory Power of Sale Loan Account Disputes Abuse of Court Process Prima Facie Case Irreparable Harm

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Parties

Johnson Muigai Mungai t/a Subukia Heshima Hardware

Applicant

Faulu Microfinance Bank Limited

Respondent

Procedural Posture

Civil Appeal / Ruling on Application for Interlocutory Injunction Pending Appeal

  1. 1 Whether the instant application constitutes an abuse of the court process.
  2. 2 Whether the applicant is entitled to interlocutory injunctive orders restraining the respondent from selling the suit properties pending appeal.

Ratio Decidendi

The court found that the applicant had established a prima facie case with a likelihood of success, as he is the registered owner of the suit properties and has raised unresolved allegations of irregularities and fraud in the loan account, which the respondent has not substantively addressed. The court determined that the applicant would suffer irreparable harm if the properties were sold before the appeal is heard, as the loss of property could not be adequately compensated by damages. The court further held that the balance of convenience favored the applicant, since the respondent retains the securities and can exercise its statutory power of sale if it prevails, whereas the applicant...

Court Disposition

Application allowed; interlocutory injunction granted.

Orders

  • An order of injunction is issued restraining the respondent and its agents from auctioning, selling, or dealing with the applicant's land titles Subukia/Subukia Block 6/361 and Subukia/Subukia Block 6/591 (Nguba) pending hearing and determination of the appeal.
  • The applicant is directed to file and serve the record of appeal within 21 days.