Ahmed Sheikh v First Community Bank Limited & another [2020] KEHC 9874 (KLR)
- Court
- High Court of Kenya
- Case number
- 9874
- Citation
- [2020] KEHC 9874 (KLR)
- Decided
- 6 July 2020
AI Summary
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Machine-generated — may contain errors. Not legal advice.
TypeInterlocutory InjunctionPostureApplication for Interlocutory InjunctionCoramD. S. MAJANJA
Holding
The court allowed the Notice of Motion and restrained the Bank from exercising its statutory power of sale in respect of the property unless it issues a fresh statutory notice under section 90 of the Land Act, 2012.
Facts
The Plaintiff, Ahmed Sheikh, owns a property known as House No. 78 in Monali Park, South C, Nairobi County. The Bank, First Community Bank Limited, advertised the property for sale by public auction on 23rd March 2020, securing a USD 180,000 loan from the Company, Allied East Africa Limited.
Issues
- Whether the court should issue an injunction restraining the Bank from exercising its statutory power of sale.
- Whether the Plaintiff was served with statutory notices under sections 90 and 96 of the Land Act and the auctioneers notice under the Auctioneers Rules.
Reasoning
The court found that the Plaintiff was not served with statutory notices and that the Bank failed to follow the prescribed procedure in seeking to realize the property as security.
Outcome
The court allowed the application.
Orders
- The 1st defendant (Bank) be and is hereby restrained from exercising its statutory power of sale in respect of the property known as House No. 78 situated LR No. 209/18945 (Original No. 209/18870/78) (IR No. 115422) unless it issues a fresh statutory notice under section 90 of the Land Act, 2012.
- The 1st defendant (Bank) shall bear the costs of the application.
Remedies
- Interlocutory injunction restraining the Bank from exercising its statutory power of sale in respect of the property.
Authorities cited
Legislation (2)
- Land Act, 2012
- Auctioneers Rules
Cases cited (3)
- Nguruman Limited v Jane Bonde Nielsen and 2 Others NRB CA Civil Appeal No. 77 of 2012 [2014] eKLR
- Giella v Cassman Brown [1973] EA 360
- Kenya Commercial Finance Co. Ltd V. Afraha Education Society [2001] Vol. 1 EA 86
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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