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Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Appeal No. 185 of 1997

Nairobi Permanent Markets Society & 11 others v Salima Enterprises & 2 others [1997] KECA 350 (KLR)

Court of Appeal
24 October 1997
1,386 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that market stall owners with no legal right or interest in land cannot challenge a registered owner's title or demand a hearing.

What this practically means

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Executive summary

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The Court of Appeal dismissed an appeal by the Nairobi Permanent Markets Society and eleven stall owners at the Westlands Permanent Market against a ruling of Mbogholi Msagha, J. delivered on 27 March 1996 in High Court Civil Case No. 3623 of 1995. The stall owners had sued Salima Enterprises Ltd, the Nairobi City Council and the Registrar of Lands seeking a declaration that a 99-year lease of the suit land granted by the Council to the company, and its registration, were unlawful, together with general damages. An interim status quo order made on 20 December 1995 was vacated by the Judge on the company's application for review, prompting this appeal. The appellants argued that the lease was unlawful, that they had locus standi, that a prima facie case existed, and that the disposal of the land without a hearing violated their legitimate expectation of fair treatment. The Court of Appeal held that the suit land was under the Registration of Titles Act and that the company, as registered proprietor, was the absolute and indefeasible owner, with no fraud or misrepresentation pleaded against it. The status quo order was an unjustified interference with the company's ownership rights, so the Judge was right to vacate it. Any breach of the conditions of the Government grant was a matter between the Commissioner and the Council, and the appellants could not rely on irregular execution of the lease absent proof of prejudice to a legal right or interest of theirs. Natural justice applied only where a party's legal right, liberty or interest was affected. The appeal was dismissed with costs.

Questions the Court framed

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

  1. 1.Whether the appellants had locus standi to bring the action for a declaration that the lease to the company was unlawful
  2. 2.Whether the learned Judge erred in vacating the status quo order of 20 December 1995
  3. 3.Whether the Council's disposal of the suit land without hearing the appellants violated their legitimate expectation to be treated fairly

Key legal issues

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01

Locus standi of the stall owners

Holding

The appellants, having disclosed no right or interest in the suit land, had no locus standi to sue for a declaration or injunction against the registered proprietor

Reasoning

The company was the registered proprietor under the Registration of Titles Act with an indefeasible title, and no fraud or misrepresentation attributable to it was pleaded. The appellants did not disclose what right or interest they held in the land; without such a right the court could not interfere with the company's ownership by restraining its activity or development of the land.

p. 3
02

Legitimate expectation and right to be heard

Holding

Natural justice and legitimate expectation claims fail where the claimant establishes no legal right, liberty or interest affected by the decision

Reasoning

Counsel argued that disposing of the land without a hearing violated the stall owners' legitimate expectation of fair treatment. The court held that natural justice applies only where a legal right, liberty or interest of an aggrieved party has been affected, and since the appellants failed to establish any right or interest in the suit land, they had no entitlement to be heard.

p. 3
03

Vacating of the status quo order

Holding

The trial Judge was justified in vacating the status quo order because it interfered with the registered proprietor's rights of ownership

Reasoning

The company purchased the land for valuable consideration, paid a stand premium of one million shillings and was liable for annual rent of one hundred thousand shillings. The interim status quo order restrained the registered owner's activity and development of the land, amounting to an unjustified interference with its ownership rights in the absence of any established competing right by the appellants.

p. 3

Legal principles established

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  • A registered proprietor under the Registration of Titles Act holds an absolute and indefeasible title, challengeable only on fraud or misrepresentation to which he is a party
  • A party cannot challenge an irregularity in a land transaction unless a legal right or interest of theirs has been prejudiced
  • Rules of natural justice apply only where the legal right, liberty or interest of an aggrieved party has been affected

Court orders

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  1. 1.Appeal dismissed with costs

The bench

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

majority
majority
majority
On appeal from
High Court of Kenya at Nairobi
H.C.C.C. No. 3623 of 1995
Jurisdiction invoked
First appeal to the Court of Appeal under the applicable appellate provisions (not expressly stated in the judgment)

Relief refused

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Setting aside the Judge's order vacating the status quo order

The status quo order interfered with the registered proprietor's indefeasible rights of ownership

p. 3

Declaration that the lease to the company was unlawful

The appellants failed to establish any legal right or interest in the suit land and had no locus standi

p. 3

Relief based on breach of the conditions of the Government grant

Any breach of the grant conditions was a matter between the Commissioner and the Council, not the appellants

p. 3

Costs

The appeal was dismissed with costs to the respondents

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.

Under s.23 of that Act a certificate of title issued by the registrar to any purchaser of land is to be taken by all courts as conclusive evidence that the person named therein as the proprietor of the land is the absolute and indefeasible owner thereof
p. 3Indefeasibility of registered title
The rules of natural justice would apply only where legal right, liberty or interest of an aggrieved party has been affected.
p. 3Natural justice and standing
We therefore dismiss the appeal with costs.
p. 3Final orders - disposition

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Nairobi Permanent Markets Society & 11 others v Salima Enterprises & 2 others [1997] KECA 350 (KLR)", Case Analysis (1997). Civil Appeal No. 185 of 1997. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1997/350/eng@1997-10-24

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