Celine Wambui Kigwe v National Bank of Kenya & 2 others [2020] eKLR Case Summary

Court
Environment and Land Court at Thika
Category
Civil
Judge(s)
Hon. Justice L. Gacheru
Judgment Date
October 22, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the case summary of Celine Wambui Kigwe v National Bank of Kenya & 2 others [2020] eKLR, detailing key legal principles and judgment insights. Perfect for legal research and understanding Kenyan law.

Case Brief: Celine Wambui Kigwe v National Bank of Kenya & 2 others [2020] eKLR

1. Case Information:
- Name of the Case: Celine Wambui Kigwe v. National Bank of Kenya & Others
- Case Number: ELC Case No. 42 of 2020
- Court: Environment and Land Court at Thika
- Date Delivered: 22nd October 2020
- Category of Law: Civil
- Judge(s): Hon. Justice L. Gacheru
- Country: Kenya

2. Questions Presented:
The court must resolve the following central legal issues:
1. Whether the Plaintiff/Applicant is entitled to injunctive relief to restrain the Defendants from evicting her from the suit property pending the hearing and determination of the suit.
2. Whether the suit is barred by the principles of res judicata or is sub judice due to previous litigation involving the same parties and issues.

3. Facts of the Case:
The Plaintiff, Celine Wambui Kigwe, took a loan of Kshs. 4 million from the 1st Defendant, National Bank of Kenya, and offered her property (L.R No. 10823/423) as security. She alleged that the bank operated her loan account irregularly, leading to unauthorized debits and significant loan arrears. The property was sold at a public auction on 12th February 2019, despite her having filed a suit on 14th March 2018 to stop the sale. The Plaintiff claimed that the auction was conducted fraudulently and without proper notice, and that the property was undervalued. The 3rd Defendant, Madonna Realtors Ltd, purchased the property, which was subsequently registered in their name. The Plaintiff sought to restrain the Defendants from evicting her, claiming the sale was illegal and that she would suffer irreparable harm if evicted.

4. Procedural History:
The Plaintiff filed a Notice of Motion Application on 1st July 2020 seeking injunctive relief. The 1st and 3rd Defendants filed Notices of Preliminary Objection, arguing that the suit was sub judice and res judicata due to previous cases filed regarding the same issues. The court heard the preliminary objections and the application for injunctive relief, with both sides presenting written submissions. Ultimately, the court dismissed the preliminary objections and the Plaintiff's application for injunctive relief.

5. Analysis:
- Rules: The court considered the provisions of the Civil Procedure Act regarding res judicata (Section 7) and sub judice (Section 6), as well as the principles for granting injunctive relief established in *Giella v. Cassman Brown Co Ltd (1973) EA 358*.

- Case Law: The court referenced several cases, including *Thiba Min. Hydro Co. Ltd v. Josphat Karu Ndwiga* and *Francis J. K. Ichatha v. Housing Finance Co. of Kenya*, to illustrate the principles of res judicata and the necessity of clean hands in seeking equitable relief. The court also noted that once a property is sold at auction, the equity of redemption is extinguished, limiting the remedies available to the chargor.

- Application: The court found that the Plaintiff did not establish a prima facie case with a probability of success, as the sale had already occurred, and the equity of redemption was extinguished. The court further held that the Plaintiff could be compensated with damages, as she had sought in her pleadings, thus failing to show that she would suffer irreparable harm.

6. Conclusion:
The court ruled against the Plaintiff, dismissing the Notice of Motion Application for injunctive relief. The court found that the Plaintiff had not met the necessary legal thresholds for such relief and that the sale of the property was valid.

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

8. Summary:
The court dismissed the Plaintiff's application for injunctive relief, affirming that the sale of the property had extinguished her equity of redemption and that she could seek damages instead. The ruling underscores the importance of adhering to statutory requirements in the exercise of a chargee's power of sale and the implications of prior litigation on new claims. The decision serves as a reminder of the legal principles surrounding property sales and the necessity of establishing a solid basis for injunctive relief in civil cases.

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