Mapema Holdings Limited v Thika Dairies Limited & 4 others [2020] eKLR Case Summary

Court
Environment and Land Court at Thika
Category
Civil
Judge(s)
L. Gacheru
Judgment Date
October 22, 2020
Country
Kenya
Document Type
PDF
Number of Pages
2
Explore the case summary of Mapema Holdings Limited v Thika Dairies Limited & 4 others [2020] eKLR, highlighting key legal findings and implications.

Case Brief: Mapema Holdings Limited v Thika Dairies Limited & 4 others [2020] eKLR

1. Case Information:
- Name of the Case: Mapema Holdings Limited v. Thika Dairies Limited & Others
- Case Number: ELC Case No. 65 of 2019
- Court: Environment and Land Court at Thika
- Date Delivered: 22nd October 2020
- Category of Law: Civil
- Judge(s): L. Gacheru
- Country: Kenya

2. Questions Presented:
The court must resolve the following central legal issues:
1. Whether the Notice of Preliminary Objection is merited.
2. Whether the suit is res judicata.
3. Whether the Notice of Motion Application dated 5th April 2019 is merited.

3. Facts of the Case:
The plaintiff, Mapema Holdings Limited, entered into a sale agreement with the 1st defendant, Thika Dairies Limited, on 10th March 2008, for the purchase of property L.R No. 4953/2414 at a price of Kshs. 9,000,000. The plaintiff claims to have received a certificate of title after paying the full purchase price, which included a deposit of Kshs. 2,000,000. However, on 4th October 2016, the 4th defendant, the Chief Land Registrar, allegedly cancelled the transfer of the property to the plaintiff, claiming that the original title was lost. The plaintiff asserts that this cancellation was fraudulent, as they held the original title and were in possession of the property. The defendants, on the other hand, contend that the sale was fraudulent and that the plaintiff never received valid title to the property.

4. Procedural History:
The plaintiff filed a Notice of Motion Application on 5th April 2019, seeking a temporary injunction to prevent the defendants from dealing with the property pending the suit's hearing. The defendants filed a Preliminary Objection on 13th May 2019, arguing that the suit was time-barred and res judicata due to previous litigation involving the same parties and issues. The court considered both the motion and the objection through written submissions.

5. Analysis:
- Rules: The relevant statutes included the Limitation of Actions Act, which sets a six-year limit for contract actions and provides exceptions for cases involving fraud (Section 26).
- Case Law: The court referenced *Mukisa Biscuits Manufacturing Co. Ltd v. West End Distributors Ltd* (1969) EA 696 regarding the nature of preliminary objections and *Giella v. Cassman Brown Co Ltd* (1973) EA 358 concerning the criteria for granting injunctions.
- Application: The court found that the preliminary objection regarding the suit being time-barred was valid, as the plaintiff's cause of action was based on events that occurred over six years prior. However, the court also determined that the allegations of fraud meant the limitation period could be extended, allowing the suit to proceed. The court dismissed the objection related to res judicata, finding that the issues had not been fully litigated in previous cases.

6. Conclusion:
The court ruled that the Notice of Preliminary Objection was not merited and dismissed it. The court found that the plaintiff had established a prima facie case for the injunction and granted the Notice of Motion Application in its entirety, allowing the plaintiff to proceed with the case.

7. Dissent:
There were no dissenting opinions reported in this case.

8. Summary:
The court's ruling in *Mapema Holdings Limited v. Thika Dairies Limited* underscores the complexities surrounding property disputes involving allegations of fraud and the importance of timely action in civil suits. The court's decision to dismiss the preliminary objection and grant the injunction highlights the need to preserve the status quo in disputes involving real property rights while the merits of the case are determined. This case serves as a significant reference point for future cases involving similar legal principles in Kenya.

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