Harishchandra Bhovanbhai Jobanputra & 1 other v Paramount Universal Bank Limited & 3 others
The bottom line
#Once a mortgaged property is knocked down at a public auction in Kenya, your right to reclaim it ends immediately—courts won't stop the sale afterward.
What this practically means
#Executive summary
#Key legal issues
#When the equity of redemption is extinguished
The equity of redemption is extinguished at the fall of the hammer at a public auction or upon a binding contract of sale, and the chargor can no longer seek injunctive relief over the sold property
The Court reaffirmed Mbuthia v Jimba Credit Finance Corporation, quoting Fisher and Lightwood's Law of Mortgage that a sale destroys the equity of redemption and makes the mortgagee a trustee of surplus proceeds. It noted the post-2010 decision in Savings and Loan Kenya Ltd v Mayfair Holdings Ltd, and that although section 89 of the Land Act, 2012 provides that the equity of redemption is not extinguished except under the Act, the property here had already been sold and transferred to a third-party purchaser. Injunctive relief was therefore no longer available.
Legal principles established
#- The equity of redemption in mortgaged or charged property is lost or extinguished at the fall of the hammer at a sale by public auction or when a binding contract of sale is entered into
Court orders
#- 1.The application before the Court of Appeal was dismissed
- 2.Costs of the application awarded to the respondents
- On appeal from
- High Court of Kenya at Nairobi
- HCCC No. 828 of 2010
- Jurisdiction invoked
- rule 5 (2) (b) of the Court of Appeal Rules
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Obadiah Gitonga Micheu v Co-operative Bank of Kenya Ltd[2026] KECA 946 (KLR)15 May 2026
Cite this brief
#Cite this brief
Caselaw, "Harishchandra Bhovanbhai Jobanputra & 1 other v Paramount Universal Bank Limited & 3 others", Case Analysis (2019). Civil Application No. NAI 335 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/582/eng@2019-06-28
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.