[2021] KEHC 6578 (KLR)

[2021] KEHC 6578 (KLR)

The court found that while the applicants raised concerns about undervaluation, lack of notice, and breach of a loan restructure agreement, they failed to provide independent evidence of the properties' value or to demonstrate that the statutory requirements under the Land Act were not met. The court held that any...

Source-derived case information.

Citation
[2021] KEHC 6578 (KLR)
Parties
Applicant: Patrick Nzusa Mang’atu; Applicant: Mapana Enterprises Ltd; Respondent: Spire Bank Ltd; Respondent: Keysian Auctioneers Ltd; Respondent: David Thuvi
Court
High Court
Court Station
High Court at Machakos
Jurisdiction
Kenya
Case Number
Civil Suit 26 of 2019
Procedural Posture
Civil Suit / Ruling on Interlocutory Applications for Injunction and Related Reliefs
Outcome
Applications partly allowed; only the order for a report on the auction granted. All other prayers dismissed.
Judges
BC Koech
Legal Topics
Statutory Power of Sale, Injunctions, Valuation of Security, Equity of Redemption, Mortgagee Duties, Remedies for Wrongful Sale
Source Language
en
Banking and Finance Land and Property Civil Procedure Statutory Power of Sale Injunctions Valuation of Security Equity of Redemption Mortgagee Duties +1 more

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Parties

Patrick Nzusa Mang’atu

Applicant

Mapana Enterprises Ltd

Applicant

Spire Bank Ltd

Respondent

Keysian Auctioneers Ltd

Respondent

David Thuvi

Respondent

Procedural Posture

Civil Suit / Ruling on Interlocutory Applications for Injunction and Related Reliefs

  1. 1 Whether the respondents complied with statutory and contractual obligations in exercising the power of sale over the charged properties.
  2. 2 Whether the applicants are entitled to an injunction restraining the sale, transfer, or further dealings with the suit properties.
  3. 3 Whether the auction and sale of the suit properties were conducted lawfully and at fair value.

Ratio Decidendi

The court found that while the applicants raised concerns about undervaluation, lack of notice, and breach of a loan restructure agreement, they failed to provide independent evidence of the properties' value or to demonstrate that the statutory requirements under the Land Act were not met. The court held that any dispute as to valuation or accounts does not justify injunctive relief, as the applicants' remedy lies in damages under section 99(4) of the Land Act. The sale of the properties had already occurred, rendering prayers to stop the sale or set it aside moot. The applicants did not meet the threshold for a temporary injunction, as there was no prima facie case, irreparable injury...

Court Disposition

Applications partly allowed; only the order for a report on the auction granted. All other prayers dismissed.

Orders

  • The 1st Respondent shall within 45 days provide a detailed report of the auction conducted on 1st and 2nd October, 2019.
  • Costs of the applications shall abide the outcome of the main suit.