Real Energy Limited v National Oil Corporation of Kenya Limited [2020] eKLR Case Summary

Court
Court of Appeal at Nairobi
Category
Civil
Judge(s)
Justices Warsame, Musinga, and Sichale
Judgment Date
October 02, 2020
Country
Kenya
Document Type
PDF
Number of Pages
2
Explore the Real Energy Limited v National Oil Corporation of Kenya Limited [2020] eKLR case summary, highlighting key legal principles and implications for energy law in Kenya.

Case Brief: Real Energy Limited v National Oil Corporation of Kenya Limited [2020] eKLR

1. Case Information:
- Name of the Case: Real Energy Limited v. National Oil Corporation of Kenya Limited
- Case Number: Civil Application No. 138 of 2020
- Court: Court of Appeal at Nairobi
- Date Delivered: October 2, 2020
- Category of Law: Civil
- Judge(s): Justices Warsame, Musinga, and Sichale
- Country: Kenya

2. Questions Presented:
The central legal issues before the court were whether the applicant, Real Energy Limited, had an arguable appeal regarding the eviction from premises known as L.R 209/6776, Ngong Road, Nairobi, and whether an injunction should be granted to prevent the respondent, National Oil Corporation of Kenya Limited, from taking over the premises pending the appeal.

3. Facts of the Case:
Real Energy Limited (the applicant) was in a landlord-tenant relationship with National Oil Corporation of Kenya Limited (the respondent) based on a Dealer Licence Agreement. The applicant had deposited a cash guarantee of Kshs. 5,000,000 and was paying monthly rent of Kshs. 200,000. The applicant claimed that the respondent had unlawfully attempted to take over the premises after the Dealer Licence Agreement expired in 2016, leading to the application for an injunction to restrain the respondent from taking over the premises during the pending appeal process.

4. Procedural History:
The applicant filed a Notice of Motion on May 29, 2020, seeking an injunction and a stay of execution of the Environment and Land Court's judgment, which had been delivered by Justice Obaga on May 7, 2020. The respondent opposed the application, arguing that the applicant had no arguable appeal and that the premises had already been leased to a new dealer since May 8, 2020. The Court of Appeal considered the application based on the principles governing rule 5(2)(b) of the Court of Appeal Rules.

5. Analysis:
- Rules: The court examined sections 3, 3A, and 3B of the Appellate Jurisdiction Act and rule 5(2)(b) of the Court of Appeal Rules, which govern the granting of injunctions pending appeals.
- Case Law: The court referenced the principles from *Stanley Kang’ethe Kinyanjui v. Tony Ketter & Others [2013] eKLR*, which outlines the criteria for granting injunctions, particularly the necessity of demonstrating an arguable appeal and the potential for the appeal to be rendered nugatory without the injunction.
- Application: The court found that the applicant failed to demonstrate an arguable appeal since the Dealer Licence Agreement had expired, and the premises had been leased to a third party. The court concluded that the orders sought had been overtaken by events, as the new dealer had already taken possession of the premises.

6. Conclusion:
The Court of Appeal ruled against the applicant, disallowing the Notice of Motion dated May 29, 2020, and ordering the applicant to bear the costs of the application. The ruling emphasized the importance of establishing an arguable appeal and the implications of the expiration of the Dealer Licence Agreement.

7. Dissent:
There were no dissenting opinions in this case, as the ruling was unanimous among the judges.

8. Summary:
The Court of Appeal denied Real Energy Limited's application for an injunction against the National Oil Corporation of Kenya Limited, concluding that the applicant did not demonstrate an arguable appeal and that the premises had already been leased to a new dealer. This case underscores the necessity for parties to maintain their legal rights and obligations within the specified terms of agreements to avoid disputes over property possession.

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