John Wanderi Muya v Amica Sacco Ltd [2020] eKLR Case Summary

Court
Co-operative Tribunal at Nairobi
Category
Civil
Judge(s)
Hon. B. Kimemia (Chairman), Hon. F. Terer (Deputy Chairman), P. Gichuki (Member)
Judgment Date
April 30, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the John Wanderi Muya v Amica Sacco Ltd [2020] eKLR case summary, highlighting key legal findings and implications. Gain insights into the judgment and its impact on similar cases.

Case Brief: John Wanderi Muya v Amica Sacco Ltd [2020] eKLR

1. Case Information:
- Name of the Case: John Wanderi Muya v. Amica Sacco Ltd
- Case Number: Tribunal Case No. 1046 of 2018
- Court: Co-operative Tribunal at Nairobi
- Date Delivered: April 30, 2020
- Category of Law: Civil
- Judge(s): Hon. B. Kimemia (Chairman), Hon. F. Terer (Deputy Chairman), P. Gichuki (Member)
- Country: Kenya

2. Questions Presented:
The central legal issues for resolution by the court include:
a. Whether the Claimant has established a proper basis to warrant the grant of a temporary injunction.
b. Who should bear the costs of the application.

3. Facts of the Case:
The Claimant, John W. Muya, entered into a loan agreement with the Respondent, Amica Sacco Ltd, securing a loan of Ksh. 3,600,000.00 against property LR No. LOC 14/GAKURWE/1558. The Claimant asserts that he has been repaying the loan, having paid Ksh. 2,900,000.00 before June 2016, and that the loan was rescheduled to run until June 2020. However, the Respondent advertised the property for sale, claiming an outstanding balance of Ksh. 2,960,343.10, without providing the mandatory three months' notice. The Respondent contends that the Claimant has failed to keep up with the loan repayments, resulting in an outstanding balance of Ksh. 2,127,136.21.

4. Procedural History:
The Claimant filed an application on December 14, 2018, seeking to restrain the Respondent from selling the property pending the resolution of the suit. The Respondent opposed this application through a replying affidavit. The Tribunal directed that the application be disposed of by way of written submissions, which were filed by both parties in 2019.

5. Analysis:
Rules:
The Tribunal has the jurisdiction to grant a temporary injunction under Order 40 of the Civil Procedure Rules, which allows for such orders to prevent the wasting or alienation of property in dispute. The principles for granting a temporary injunction were established in the case of Giella v. Cassman Brown & Co. Ltd [1973] EA 358, requiring a prima facie case, irreparable damage, and balance of convenience.

Case Law:
The Tribunal referred to the case of Mrao Ltd v. First American Bank of Kenya Ltd (2008) eKLR, which defines a prima facie case as one where there is an infringement of a right that warrants an explanation from the opposing party. In this case, the Claimant’s assertions regarding the loan calculations and the lack of notice were examined.

Application:
The Tribunal found that the Claimant did not dispute owing money to the Respondent but contested the calculation of the outstanding balance and the lack of proper notice prior to the sale advertisement. The Tribunal noted inconsistencies in the Claimant's repayment history and concluded that he had not established a prima facie case. However, the potential for irreparable loss if the property were sold necessitated a temporary injunction to preserve the subject matter of the suit. The balance of convenience favored granting the injunction to prevent any premature sale of the property.

6. Conclusion:
The Tribunal ruled in favor of the Claimant, granting the application for a temporary injunction to restrain the Respondent from selling the property. The Claimant was ordered to cover the auctioneer's costs and advertisement fees, and the parties were directed to comply with procedural orders for the main claim's hearing.

7. Dissent:
There were no dissenting opinions noted in the ruling.

8. Summary:
The Tribunal's ruling allowed the Claimant's application for a temporary injunction, thereby preventing the sale of the property in question until the matter could be fully heard. This case underscores the importance of proper notice and the calculation of outstanding loan balances in disputes involving property sales, as well as the principles governing the granting of temporary injunctions in civil cases.

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