DAVID KINYANJUI NJUGUNA v NDETIKA RURAL SACCO SOCIETY LTD & another [2006] KEHC 2450 (KLR)

Facts

The plaintiff, David Kinyanjui Njuguna, sought an injunction to restrain the defendants, NdeTika Rural Sacco Society Ltd and Simon Ngomonge, from selling the suit property (Title Number SIGONA/925) until the substantive suit is heard and determined. The plaintiff claimed he had provided security for loans of KShs. 1,430,000/= and KShs. 265,000/=, but the defendants disputed his claims.

Issues

1. Whether the plaintiff has made out a prima facie case for an injunction
2. Whether the defendants have the right to realise the security registered under the Registered Land Act

Reasoning

The court finds that the plaintiff has made out a prima facie case with a probability of success, as the statutory notice may ultimately be found to be invalid. The statutory power of sale can only accrue if the chargor fails to comply with a notice served under Section 69 of the Transfer of Property Act 1882, which does not trigger the process for realising a security registered under the Registered Land Act.

Outcome

The defendants are restrained from selling, disposing, alienating, transferring or interfering with the suit property until the substantive suit is heard and determined.

Authorities cited