David Wabweni Wafula & another v SBM Bank Ltd & another [2020] eKLR Case Summary

Court
High Court of Kenya at Kitale
Category
Civil
Judge(s)
H. K. Chemitei
Judgment Date
October 21, 2020
Country
Kenya
Document Type
PDF
Number of Pages
2

Case Brief: David Wabweni Wafula & another v SBM Bank Ltd & another [2020] eKLR


1. Case Information:
- Name of the Case: David Wabweni Wafula & Simon Achayo Odundo v. SBM Bank Ltd & Godfrey Omondi T/A Colinet Auctioneers
- Case Number: Civil Case No 6 of 2020
- Court: High Court of Kenya at Kitale
- Date Delivered: October 21, 2020
- Category of Law: Civil
- Judge(s): H. K. Chemitei
- Country: Kenya

2. Questions Presented:
The central legal issues for resolution by the court include:
- Whether the Plaintiffs/Applicants possess the requisite locus standi to seek an injunction against the Defendants regarding the sale of the land parcel in question.
- Whether the Plaintiffs/Applicants are entitled to the temporary orders of injunction to restrain the Defendants from selling the land pending the resolution of the main suit.

3. Facts of the Case:
The Plaintiffs, David Wabweni Wafula and Simon Achayo Odundo, purchased portions of land parcel number Kitale Municipality Block 17 (Bidii) 260 from a registered owner, Peter Wafula Khamala, in 2011 and 2016, respectively. They occupied the land and later discovered that the vendor had charged the title to Chase Bank, which was subsequently taken over by SBM Bank (the 1st Defendant). Upon learning that the land was to be sold via public auction due to the vendor's loan default, the Plaintiffs sought an injunction to prevent the sale, asserting that their purchased portions were not included in the bank's valuation.

4. Procedural History:
The Plaintiffs filed a Notice of Motion on June 15, 2020, requesting a temporary injunction against the sale of the land. The 1st Defendant responded with a Replying Affidavit detailing the loan agreement with the vendor and the default status. The court directed both parties to submit written submissions, which were considered during the ruling.

5. Analysis:
- Rules: The court examined the principles surrounding locus standi, which determines the right of a party to bring a legal action. The relevant legal framework included the rights of registered property owners versus those of third-party purchasers.
- Case Law: The court referenced the definition of locus standi from *Black's Law Dictionary*, indicating that only parties directly involved in a legal agreement possess the standing to litigate. Previous rulings emphasized that third parties, such as the Plaintiffs, lack standing when they are not privy to the underlying contract between the chargor and chargee.
- Application: The court concluded that the Plaintiffs, being purchasers from the chargor and not the registered owners, lacked locus standi to challenge the bank's statutory power of sale. The absence of the chargor in the proceedings further complicated their position, as they were not parties to the original loan agreement.

6. Conclusion:
The court dismissed the application for an injunction due to the Plaintiffs' lack of locus standi. It ruled that the bank was entitled to exercise its statutory power of sale over the property, and the absence of the chargor weakened the Plaintiffs' case. The ruling underscores the importance of verifying property titles and the implications of third-party purchases in real estate transactions.

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

8. Summary:
The High Court of Kenya dismissed the Plaintiffs' application for a temporary injunction, affirming that they lacked the legal standing to challenge the sale of the land. The decision highlights the critical nature of property title verification and the risks associated with purchasing land from parties who may not have clear ownership rights. The ruling serves as a cautionary tale for prospective buyers regarding the necessity of due diligence in property transactions.

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