Akright Projects Ltd v Executive Property Holdings Ltd (HCT-OO-CC-MA 142 of 2009)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court set aside the execution warrant and bailiff sale on grounds that the bailiff failed to follow mandatory statutory procedures for execution sales of immovable property. The sale was conducted without proper advertisement after the stay was lifted, title deeds were not deposited with court, the warrant was not registered at the land registry, and proceeds were paid directly to the creditor's advocates rather than into court. These irregularities meant the sale could not have been to the highest bidder and amounted to a private treaty rather than a lawful public auction.
Outcome
Execution sale set aside; property released from attachment; title deeds to be returned to applicant
Facts
The applicant's property was attached under a warrant issued on 27 January 2009 following a consent judgment in HCCS No. 140/08. The property was advertised on 30 January 2009. On 28 January 2009 the applicant filed an application to set aside the warrant which was stayed by court order on 26 February 2009 pending determination. The auctioneers renewed the warrant on 25 February 2009. On 11 March 2009 at 4:30 pm the court dismissed the application to set aside, and on 12 March 2009 the auctioneers purported to sell the property by private treaty to three purchasers without re-advertising after the stay. The auctioneers paid the proceeds directly to the respondent's advocates rather than into court, did not deposit title deeds with court, and failed to register the warrant at the land registry as required by statute.
Issues
- Whether the execution warrant issued on 25 February 2009 should be set aside on grounds of procedural irregularities.
- Whether the bailiff sale of immovable property conducted on 12 March 2009 was invalid for failure to follow statutory procedures for public auction.
- Whether the sale constituted a private treaty rather than a public auction.
- Whether the bailiff's failure to deposit proceeds to court and to register the warrant vitiated the sale.
Orders
- The execution warrant of attachment issued on 25 February 2009 is set aside.
- The property attached under the warrant in respect of land comprised in Block 276 and the plots as per schedule attached is released from attachment.
- The sale of land comprised in Block 276 and the plots as per schedule purported to have taken place on 12 March 2009 is cancelled and annulled.
- All owner's certificates of title are to be returned to the Applicant.
- Costs awarded to the Applicants.
Rules and key headnotes
Legislation cited (20)
- Civil Procedure Act s.34
- Civil Procedure Act s.35(1)
- Civil Procedure Act s.98
- Civil Procedure Rules Order 22 Rule 1
- Civil Procedure Rules Order 22 Rule 2(1)
- Civil Procedure Rules Order 22 Rule 2(2)
- Civil Procedure Rules Order 22 Rule 11
- Civil Procedure Rules Order 22 Rule 51
- Civil Procedure Rules Order 22 Rule 51(1)
- Civil Procedure Rules Order 22 Rule 51(2)
- Civil Procedure Rules Order 22 Rule 62
- Civil Procedure Rules Order 22 Rule 63
- Civil Procedure Rules Order 22 Rule 65(1)
- Civil Procedure Rules Order 52 Rule 1
- Civil Procedure Rules Order 52 Rule 3
- Judicature Act s.33
- Judicature Act s.171-1
- Judicature (Court Bailiffs Rules) Rule 15(1)
- Registration of Titles Act Cap 230 s.48
- Registration of Titles Act Cap 230 s.135
Cases cited (5)
- Micah -v- Walakira
- Hable International and ORS -v- Ibrahim Alakhia (12.12.96 by Mpagie - Bahiseine. J)
- Hannington Wasswa -v- Ssemutu
- Standard Bank of South Africa Ltd v S D Senkubuge (CC No. 919 of 1958)
- Stirling Civil Engineering-vs- Petro (U) Ltd & two others
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.