[2021] KEELC 1268 (KLR)

[2021] KEELC 1268 (KLR)

The court found that the Plaintiff was entitled to the reversionary interest in the suit property, as all thirty apartments had been sold and membership fees paid, fulfilling the conditions in the Sale and Lease Agreements. The Defendant had no valid reason to withhold the reversionary interest. The health club and...

Source-derived case information.

Citation
[2021] KEELC 1268 (KLR)
Parties
Plaintiff: Taj Millenium Management Limited; Defendant: Taj Mall Limited
Court
Environment and Land Court
Court Station
Environment and Land Court at Nairobi
Jurisdiction
Kenya
Case Number
Environment & Land Case 721 of 2012
Procedural Posture
Civil Suit / Judgment
Outcome
Plaintiff's suit allowed; Defendant's counterclaim dismissed.
Legal Topics
Breach of Lease, Reversionary Interest, Common Property Rights, Injunctive Relief, Management Company Disputes
Source Language
en
Land and Property Commercial and Corporate Breach of Lease Reversionary Interest Common Property Rights Injunctive Relief Management Company Disputes

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Summary, issues, holding and outcome

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Parties

Taj Millenium Management Limited

Plaintiff

Taj Mall Limited

Defendant

Procedural Posture

Civil Suit / Judgment

  1. 1 Whether the Defendant is obligated to transfer the reversionary interest to the Plaintiff.
  2. 2 Whether the health club and gymnasium formed part of the estate and if the Defendant had a legal right to convert them into apartments.
  3. 3 Whether the Plaintiff is entitled to the orders sought in the Plaint.

Ratio Decidendi

The court found that the Plaintiff was entitled to the reversionary interest in the suit property, as all thirty apartments had been sold and membership fees paid, fulfilling the conditions in the Sale and Lease Agreements. The Defendant had no valid reason to withhold the reversionary interest. The health club and gymnasium were expressly included as part of the estate in the Sale and Lease Agreements, and the Defendant's unilateral conversion and sale of these amenities as apartments was a breach of contract and contrary to the agreed terms. The Defendant failed to prove that the Plaintiff consented to the conversion or waived its rights, and did not provide evidence of proper approvals...

Court Disposition

Plaintiff's suit allowed; Defendant's counterclaim dismissed.

Orders

  • Declaration that the Defendant breached the Lease Agreement dated 27th September, 2001.
  • Permanent injunction restraining the Defendant from disposing, charging, transferring, or otherwise dealing with LR No.209/14036.