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ELCDismissednot_stated_in_judgment

Daykio Plantations Ltd v National Bank of Kenya Ltd & 2 others (Environment and Land Case 222 of 2018) [2019] KEELC 48 (KLR)

Environment and Land Court
19 December 2019
2,086 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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A Kenyan land court refused to strike out a suit where the plaintiff claims beneficial ownership, ruling that such claims need evidence, not a shortcut objection.

What this practically means

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Executive summary

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This Environment and Land Court ruling at Thika, delivered by L. Gacheru J on 19th December 2019, determined a Notice of Preliminary Objection dated 16th August 2018 raised by the 1st Respondent. The objection contended that the Applicant lacked locus standi to lodge the application, that the application was fatally defective in substance and form, and that the suit was frivolous, vexatious and an abuse of court process. The 1st Respondent argued there was no evidence of the Applicant's ownership of the suit property as a juristic person and that only registration could confer the right to sue. The Applicant, through Chege Kibathi & Company Advocates, responded that its locus derived from beneficial ownership premised on a trust, having mistakenly transferred title to the 2nd Respondent who received it as a resulting trustee. The Court first applied the Mukisa Biscuit test and found that lack of locus standi is capable of disposing of a matter preliminarily without ascertaining facts, so the objection was properly characterised. However, on the merits, the Court held that the Applicant's claim of beneficial interest and the 2nd Respondent's resulting trust required evidence to be ascertained at the hearing; determining the question at that stage would be draconian and would pre-empt the suit. Relying on Presbyterian Foundation and the Wilmot Mwadilo decision, the Court dismissed the preliminary objection entirely, with costs in the cause, directing that the suit proceed to full hearing.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the objection raised by the 1st Respondent qualifies as a Preliminary Objection within the Mukisa Biscuit threshold
  2. 2.Whether the Applicant lacks locus standi to institute the suit, such that the suit should be struck out

Key legal issues

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01

Whether the notice of preliminary objection met the Mukisa Biscuit threshold

Holding

The Court found the objection was properly raised as a preliminary objection since lack of locus standi can dispose of the matter without ascertaining facts

Reasoning

The Court applied the classic Mukisa Biscuit test, holding that locus standi is a point of law capable of disposing of a suit preliminarily without resorting to facts outside the pleadings, so the objection was properly characterised.

p. 3
02

Whether the Applicant lacks locus standi given its claim of beneficial interest and trust

Holding

The objection failed because the Applicant's beneficial interest is a question of fact requiring evidence at the hearing, not resolvable on a preliminary objection

Reasoning

The Applicant claimed beneficial ownership and that the 2nd Respondent holds the title as a resulting trustee. Determining that claim would require the Court to interrogate evidence, which is impermissible on a preliminary objection; dismissing the suit at that stage would be draconian and would deny the Applicant a hearing on the merits.

p. 4

Legal principles established

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  • A preliminary objection raises a pure point of law argued on the assumption that all facts pleaded by the other side are correct; it cannot be raised if any fact has to be ascertained or where judicial discretion is sought
  • Lack of locus standi can dispose of a matter preliminarily, but where the claimant asserts a beneficial interest or trust, that question requires evidence and cannot be resolved by preliminary objection

Court orders

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  1. 1.The 1st Respondent's Preliminary Objection dated 16th August 2018 is dismissed entirely
  2. 2.Costs of the Preliminary Objection to be in the cause

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over the suit property dispute (no specific provision cited in the judgment)

Relief refused

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1st Respondent's prayer that the Applicant's suit be struck out for want of locus standi

Whether the Applicant holds a beneficial interest in the suit property is a matter of evidence that cannot be determined via a preliminary objection

p. 4

Costs

The 1st Respondent's Preliminary Objection is dismissed entirely with costs being in the cause.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

the Court finds and holds that at this juncture, it would be imprudent to dismiss the Applicant's Application as the suit ought to be heard and facts ascertained to arrive at a just determination.
p. 4Disposal of the preliminary objection
the 1st Respondent's Preliminary Objection is not merited and the same is dismissed entirely with costs being in the cause.
p. 4Final orders
the instant issue while it goes to the Jurisdiction of this Court, certain facts must be ascertained and therefore the issue at hand cannot be determined via a Preliminary Objection
p. 4Locus standi requiring evidence

Issues in the judgment

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minor

The judgment does not state the case number or the names of the parties; it opens directly at the determination stage and refers to the parties only as Applicant/Respondents

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, "Daykio Plantations Ltd v National Bank of Kenya Ltd & 2 others (Environment and Land Case 222 of 2018) [2019] KEELC 48 (KLR)", Case Analysis (2019). not_stated_in_judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/48/eng@2019-12-19

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