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ELCPartially AllowedNot stated in the judgment

Kimuyu v Ngulili & 2 others (Environment and Land Case 040 of 2024) [2025] KEELC 6503 (KLR)

Environment and Land Court
3 July 2025
1,840 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that disputed auctioneer's fees must go through official taxation, attached goods stay held until fees are paid, and damages claims need a separate case.

What this practically means

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Executive summary

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This ruling by the Environment and Land Court (E. O. Obaga, J) determines a Notice of Motion dated 21st February 2025 by the Plaintiff/Applicant, a tenant of the 3rd Defendant/Respondent in Itumbule Building. After a demand for rent arrears of Kshs.386,000/- in September 2024, Eastern Kenya Auctioneers proclaimed and carted away the Applicant's goods, which the Applicant valued at over Kshs.10,000,000/-. The Applicant sought orders declaring the rent fully settled, directing deposit of any sale proceeds into a joint account, and indemnity and compensation for alleged unlawful attachment. The 3rd Respondent confirmed full settlement of rent arrears, leaving only auctioneer's fees agreed at Kshs.403,500/-, which she said could be taxed under Rule 55(2) of the Auctioneers Rules. The court framed three issues: taxation of the auctioneer's bill, unconditional release of the goods, and costs. It held that as the Applicant disputed the fees with no agreement, the Deputy Registrar should tax the bill. It declined to order unconditional release, holding that the auctioneer is not a party and cannot be adversely ordered unheard, that he was entitled to fees having attached before the arrears were cleared, and that he has a lien over the goods. The indemnity claim was disallowed, damages being recoverable only through a separate action. Prayer 4 succeeded partially; the Applicant, having substantially lost, was ordered to pay costs to the 3rd Respondent.

Questions the Court framed

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

  1. 1.Whether the court should order that the Deputy Registrar tax the auctioneer's bill in accordance with Rule 55(2) of the Auctioneers Rules
  2. 2.Whether the court should order the unconditional release of the attached goods
  3. 3.Which order should be made on costs

Key legal issues

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01

Whether the auctioneer's bill should be taxed by the Deputy Registrar

Holding

Yes - the Applicant disputes the bill and there is no agreement on fees, so the Deputy Registrar should tax the bill to be filed by the auctioneers

Reasoning

Rule 55(2) of the Auctioneers Rules empowers a registrar to assess fees payable where a dispute arises in proceedings before the High Court. The Applicant disputes the Kshs.403,500/- charged and there is no agreement on fees, so the statutory route of taxation was the appropriate remedy.

p. 4
02

Whether the attached goods should be unconditionally released

Holding

No - the auctioneer retains a lien over the attached property pending settlement of fees, and adverse orders cannot issue against a non-party unheard

Reasoning

The auctioneer is not a party to the suit, so orders against him would breach the right to be heard. The goods were attached before rent arrears were cleared, so the auctioneer is entitled to his fees and has a lien. Any claim for unlawful attachment must be brought as a separate action for damages.

p. 4
03

Whether the Applicant is entitled to indemnity and compensation for alleged irregular attachment

Holding

No - damages for alleged unlawful action are recoverable through a separate action which has not been filed

Reasoning

The present application was not for determination of the lawfulness of the attachment. Nothing in it provides a basis for assessing alleged damages, and the Auctioneers Act contemplates recovery of such damages through an action, which the Applicant has not instituted.

p. 4

Legal principles established

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  • Where proceedings are before the court and there is a dispute as to auctioneer's fees with no agreement, the Deputy Registrar may tax the auctioneer's bill under Rule 55(2) of the Auctioneers Rules
  • No adverse orders may be made against a non-party without affording that party an opportunity to be heard
  • An auctioneer who attached goods before rent arrears were cleared is entitled to payment of his fees and retains a lien over the attached property pending settlement

Court orders

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  1. 1.The auctioneer's bill to be filed by the auctioneers and taxed by the Deputy Registrar of the court under Rule 55(2) of the Auctioneers Rules (prayer 4 allowed partially)
  2. 2.Prayer 5 found misplaced and not granted as the attached goods have not been sold
  3. 3.Prayer 6 (indemnity and compensation) disallowed
  4. 4.Costs of the application granted to the 3rd Respondent

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Dispute referred to taxation/assessment of auctioneer's fees under Rule 55(2) of the Auctioneers Rules in proceedings before the court

Relief refused

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Unconditional release/deposit of proceeds of attached goods (prayer 5)

The goods have not been sold and the auctioneer has a lien over the attached property pending settlement of fees

p. 4

Indemnity and full compensation for alleged unlawful attachment (prayer 6)

The auctioneer is not a party to the suit and damages for alleged unlawful action must be recovered through a separate action which has not been filed

p. 4

Costs

Costs of the application granted to the 3rd Respondent

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.

As the Applicant is disputing the amount being charged by the auctioneer and there being no agreement on fees, I order that the Deputy Registrar of this court should tax the auctioneer's bill which shall be filed by the auctioneers.
p. 4Taxation of auctioneer's bill under Rule 55(2)
The auctioneer is not a party to this suit. There can be no adverse orders given against the auctioneer without affording him an opportunity to be heard.
p. 4Fair hearing - orders against non-party
The auctioneer has a lien over the attached property pending settlement of his fees. There is therefore no basis of ordering an unconditional release of the attached goods.
p. 4Auctioneer's lien
The only prayer which succeeds partially is prayer 4 which I allow by ordering that the auctioneers fees be agreed or taxed by the Deputy Registrar of this court. As the Applicant has substantially lost the application, I grant costs of the application to the 3rd Respondent.
p. 4Disposition and costs

Issues in the judgment

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minor

The judgment quotes 'Section 26 of the Auctioneers Act' but the quoted text concerns accountant's certificates and appears to be from the Auctioneers Rules rather than a substantive entitlement provision

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, "Kimuyu v Ngulili & 2 others (Environment and Land Case 040 of 2024) [2025] KEELC 6503 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/6503/eng@2025-07-03

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