Zaheer Jhanda v Losupuk Limited [2020] eKLR Case Summary

Court
Environment and Land Court at Nairobi
Category
Civil
Judge(s)
B. M. Eboso
Judgment Date
October 16, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the Zaheer Jhanda v Losupuk Limited [2020] eKLR case summary, highlighting key legal principles, judgments, and implications for future cases in Kenya's legal landscape.

Case Brief: Zaheer Jhanda v Losupuk Limited [2020] eKLR

1. Case Information:
- Name of the Case: Zaheer Jhanda v. Losupuk Limited
- Case Number: ELC Case No. 101 of 2020
- Court: Environment and Land Court at Nairobi
- Date Delivered: 16th October 2020
- Category of Law: Civil
- Judge(s): B. M. Eboso
- Country: Kenya

2. Questions Presented:
The primary legal issues before the court include:
- Whether the plaintiff has established a prima facie case with a probability of success in the breach of contract claim against the defendant.
- Whether the plaintiff is entitled to injunctive relief to prevent the defendant from dealing with the suit property pending the resolution of the case.

3. Facts of the Case:
The plaintiff, Zaheer Jhanda, entered into a sale agreement with the defendant, Losupuk Limited, on 21st February 2019, for the purchase of two parcels of land (Land Reference Numbers 209/384/5 and 209/384/6) for Kshs 150,000,000. The plaintiff contends that he paid the entire purchase price but did not receive completion documents or vacant possession of the properties. The defendant, however, claims that the plaintiff only made partial payments and that the sale agreement was mutually cancelled via a cancellation agreement dated 5th August 2019, which the plaintiff disputes.

4. Procedural History:
The plaintiff filed a suit on 1st April 2020, seeking various orders including a mandatory injunction against the defendant and specific performance of the sale agreement. Along with the plaint, the plaintiff filed a notice of motion for urgent relief. The defendant responded with a statement of defense and a replying affidavit, asserting that the sale agreement was cancelled and payments were made in accordance with the cancellation agreement. The case proceeded with written submissions from both parties regarding the application for injunctive relief.

5. Analysis:
- Rules: The court evaluated the application based on the criteria established in *Giella v. Cassman Brown (1973) EA 358*, which requires the applicant to demonstrate a prima facie case, show irreparable harm, and consider the balance of convenience.
- Case Law: The court referenced several cases, including *American Cyanamid Co v. Ethicon Limited* and *Mrao v. First American Bank of Kenya Limited*, to underscore the standards for granting injunctions. These cases highlight the necessity of establishing a prima facie case and the potential for irreparable harm.
- Application: The court found that the plaintiff had presented sufficient evidence to suggest he might have paid the full purchase price. The defendant's claims regarding the cancellation agreement were contested, particularly because the execution part relating to the plaintiff was missing. The court determined that there was a risk of the suit properties being wasted or alienated, justifying the need for injunctive relief.

6. Conclusion:
The court ruled in favor of the plaintiff's application for a temporary injunction, ordering that the defendant refrain from disposing of the suit properties and that rental income be preserved pending the final determination of the case. The court emphasized the need to protect the properties from potential harm while the legal dispute was ongoing.

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

8. Summary:
The ruling in *Zaheer Jhanda v. Losupuk Limited* underscores the importance of preserving property rights during legal disputes involving contractual agreements. The court's decision to grant a temporary injunction reflects its commitment to preventing irreparable harm while ensuring that both parties have their claims fairly adjudicated. The case highlights the complexities involved in real estate transactions and the legal implications of cancellation agreements.

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