[2022] KEHC 2118 (KLR)

[2022] KEHC 2118 (KLR)

The court held that the contract between the parties did not entitle the appellants to repossess and sell the subject motor vehicle without first instituting legal proceedings and obtaining a court order. The absence of a registered chattels mortgage and failure to serve the respondents with the required notices...

Source-derived case information.

Citation
[2022] KEHC 2118 (KLR)
Parties
Appellant: Real People Kenya Limited; Appellant: Jairo Ounze Mukoya T/A Yamuko Auctioneers; Respondent: John Nyandega T/A Akmal Enterprises; Respondent: Eunice Ododa
Court
High Court
Court Station
High Court at Kisumu
Jurisdiction
Kenya
Case Number
Civil Appeal 33 of 2020
Procedural Posture
Civil Appeal / Judgment
Outcome
Appeal partially allowed; judgment of the trial magistrate set aside and substituted.
Judges
JN Kamau
Legal Topics
Loan Agreements, Contract Enforcement, Repossession of Chattels, Auctioneers Rules, Damages for Unlawful Sale
Source Language
en
Commercial and Corporate Civil Procedure Loan Agreements Contract Enforcement Repossession of Chattels Auctioneers Rules Damages for Unlawful Sale

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Parties

Real People Kenya Limited

Appellant

Jairo Ounze Mukoya T/A Yamuko Auctioneers

Appellant

John Nyandega T/A Akmal Enterprises

Respondent

Eunice Ododa

Respondent

Procedural Posture

Civil Appeal / Judgment

  1. 1 Whether the appellants were entitled to repossess and sell the subject motor vehicle without instituting legal proceedings.
  2. 2 Whether the sale of the subject motor vehicle was conducted in accordance with the law and proper notice was served.
  3. 3 Whether the respondents proved their claim for loss of profits, insurance costs, and sums paid.

Ratio Decidendi

The court held that the contract between the parties did not entitle the appellants to repossess and sell the subject motor vehicle without first instituting legal proceedings and obtaining a court order. The absence of a registered chattels mortgage and failure to serve the respondents with the required notices under the Auctioneers Rules rendered the sale unlawful. The respondents, however, failed to specifically prove their claims for loss of profits, insurance costs, and sums paid as special damages. The appellants were entitled to recover the outstanding loan balance, less the proceeds of the unlawful sale, while the respondents were entitled to general damages for the unlawful sale....

Court Disposition

Appeal partially allowed; judgment of the trial magistrate set aside and substituted.

Orders

  • Judgment entered for the 1st appellant against the respondents jointly and severally for Kshs 283,414.27 with interest at court rate from 3rd September 2017 until payment in full.
  • Judgment entered for the respondents against the 1st appellant for Kshs 500,000 as general damages for unlawful sale of the motor vehicle with interest at court rates from the date of judgment until payment in full.