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Court of AppealDismissedCivil Appli 78 of 2009 (UR 47/2009)· [2009] KECA 46 (KLR)

Peter Ng’ang’a Muiruri v Peter Nganga Muiruri & another [2009] KECA 46 (KLR)

Court of Appeal of Kenya
20 November 2009
2,402 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Court of Appeal refused to stop the sale or interference with a Sh60 million property because an applicant must prove both grounds for an injunction pending appeal.

What this practically means

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Executive summary

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This was an application under rule 5(2)(b) of the Court of Appeal Rules seeking an injunction pending an intended appeal against a ruling of Kimaru J. delivered on 16th March 2009 in HCCC No. 1928 of 2000, in which the High Court refused to join Chiera Waithaka and Barclays Bank of Kenya Ltd as defendants but allowed amendment of the plaint without reference to them. The dispute originated in a loan from Housing Finance Company of Kenya secured by a charge over the applicant's land, which HFCK sold to Waithaka, who charged it to Barclays. An earlier suit, HCCC No. 287 of 2008, against the new parties had been struck out by Khaminwa J. as an abuse of process, on the view that once the mortgagor's equity of redemption was extinguished, only a claim for damages in the subsisting first suit lay. The Court of Appeal restated the settled rule 5(2)(b) principles, following Reliance Bank Ltd v Norlake Investments Ltd and Madhupaper International Ltd v Karr: the applicant must show the intended appeal is arguable and that its success would be rendered nugatory if the application is refused. The court gave the applicant the benefit of doubt on arguability but held the nugatory limb unsatisfied: if the appeal succeeded, the applicant's remedy would be in damages against the defendants, and Waithaka, the registered owner for some time, should not be disturbed. The application was dismissed with costs to the two respondents.

Key legal issues

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01

The governing principles for an application under rule 5(2)(b) of the Court of Appeal Rules

Holding

The applicant must demonstrate both that the intended appeal is arguable and that, if the application is refused and the appeal succeeds, the success will be rendered nugatory; both limbs must be proved.

Reasoning

The court restated the settled test, citing Reliance Bank Ltd v Norlake Investments Ltd and Madhupaper International Limited v Karr. It assumed arguability on the benefit of doubt due to the case's history, but found the nugatory limb unsatisfied because the applicant's remedy lay in damages against the defendants, and the property had already been transferred to Waithaka as registered owner whom the court declined to disturb.

p. 4
02

Whether refusal of the injunction would render the intended appeal nugatory

Holding

No - if the appeal succeeded, the applicant would be joined with the new defendants in HCCC No. 1928 of 2000 and could pursue damages; the availability of damages meant the appeal's success would not be nugatory.

Reasoning

The court reasoned that in the event of success, Waithaka and Barclays would be made parties, the amended plaint prosecuted, and if the applicant succeeded he would obtain damages against all defendants for the illegal sale. The property's value (stated at Ksh. 60,000,000) meant damages was a viable avenue; justice had to be even-handed given Waithaka's registered ownership.

p. 4

Legal principles established

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  • An applicant under rule 5(2)(b) must satisfy both limbs - that the appeal or intended appeal is arguable, and that its success would be rendered nugatory if the application is dismissed; both must be proved to the court's satisfaction.
  • The two limbs of the rule 5(2)(b) test are: the appeal is arguable (not frivolous) and the appeal's success would be rendered nugatory if the application is dismissed.

Court orders

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  1. 1.The application under rule 5(2)(b) is dismissed
  2. 2.Costs of the application awarded to the two respondents, Chiera Waithaka and Barclays Bank of Kenya Limited
On appeal from
High Court of Kenya at Nairobi, Milimani Commercial Courts
H.C.C.C. No. 1928 of 2000
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Peter Ng’ang’a Muiruri v Peter Nganga Muiruri & another [2009] KECA 46 (KLR)", Case Analysis (2009). Civil Appli 78 of 2009 (UR 47/2009). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2009/46/eng@2009-11-20

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.