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KENLINE AGENCIES LTD v HOUSING FINANCE COMPANY OF KENYA LTD & another [2007] KEHC 237 (KLR)

[2007] KEHC 237 (KLR) High Court of Kenya
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Court
High Court of Kenya
Case number
237
Citation
[2007] KEHC 237 (KLR)
AI Summary Beta Machine-generated — may contain errors. Not legal advice.
TypeInterlocutory ApplicationPostureApplicant/Applicant seeks an interlocutory injunction and prohibitory order.CoramBosire
Holding

The court found that the purported sale was illegal and invalid.

Facts

Kenline Agencies Ltd took out a mortgage with Housing Finance Company of Kenya Ltd in 1997. The 1st Respondent has been interviewing potential purchasers for the suit property, intending to convey it in purported exercise of statutory power of sale. The Applicant has discovered that the 1st Respondent clandestinely and fraudulently entered into a sale agreement with the 2nd Respondent.

Issues

  1. Whether the charge registered in favour of the 1st Respondent against the suit property is lawful.
  2. Whether the 1st Respondent’s statutory power of sale has arisen.
  3. Whether the 1st Respondent served the Applicant with a valid statutory notice.
  4. Whether the 1st Respondent has already exercised its statutory power of sale.
  5. Whether the purported sale of the suit property to the 2nd Respondent was legal or null and void.
  6. What remedy if any is available to the Applicant.

Reasoning

The court considered the evidence and concluded that the sale was fraudulent and without legal authority.

Outcome

Denied the application.

Orders

  • Interlocutory injunction restraining Housing Finance Company of Kenya Ltd from conveying or transferring the suit property to John Githua Njogu or his nominee.
  • Prohibitory order restraining the Respondents from registering any other or further documents against the certificate of title registered at the Nairobi Land Registry until further orders of this court.

Remedies

  • Interlocutory injunction
  • Prohibitory order

Authorities cited

Legislation (2)
  • Transfer of Property Act
  • Registration of Titles Act
Cases cited (1)
  • Mrao Limited v First American Bank of Kenya Ltd & 2 Others KLR [2003] 125 at page 138
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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