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Court of AppealAllowedCivil Application No. NAI 134 of 2000 (61/2000 UR)

MR. & MRS. AFTAB AHMED v SAVINGS AND LOAN (K) LIMITED & ANOTHER [2000] KECA 207 (KLR)

Court of Appeal
30 June 2000
290 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~1 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal halted a property sale's consequences because the buyers allegedly colluded, protecting the sellers' appeal rights.

What this practically means

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Executive summary

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This is the ruling of Bosire JA in an interlocutory application to the Court of Appeal at Nairobi by Mr and Mrs Aftab Ahmed, applicants in a pending intended appeal against Savings and Loan (K) Limited (1st respondent) and Mrs Philipa Lakin (2nd respondent). The application arose from the ruling of the High Court of Kenya at Nairobi (Ransley, Commissioner of Assize) dated 4th May 2000 in H.C.C. Suit No. 479 of 1999, in which the Commissioner decided the matter on the basis of Section 69B(2) of the Transfer of Property Act. The coram comprised Tunoi, Shah and Bosire JJ.A, each of whom prepared a ruling; the present extract contains only Bosire JA's, in which he recorded that he had read the draft rulings of his two colleagues and agreed with the reasoning and conclusions of Tunoi JA. Bosire JA identified the applicants' major complaint as collusion between the two respondents in the sale of the suit premises to the 2nd respondent, and added that Section 69B(2) of the Transfer of Property Act does not, prima facie, cover cases where a purchaser is shown to have acted in collusion with, or been party to any irregularity connected with, his acquisition of the subject property. He agreed that the intended appeal raised serious arguable points and that, unless a stay was granted, the appeal, if successful, would be rendered nugatory. The court accordingly allowed the application, granting a stay in the terms sought, with the costs of the application to be in the intended appeal. The High Court ruling itself was not disturbed; its effect was suspended pending the intended appeal. Note that the cause title describes the application as one for an injunction, while the ruling grants a stay.

Questions the Court framed

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

  1. 1.Whether the applicants' intended appeal raises serious arguable points.
  2. 2.Whether, unless a stay is granted, the intended appeal, if successful, would be rendered nugatory.
  3. 3.Whether the applicants are entitled to a stay in terms of the orders sought in their application before the Court of Appeal.
  4. 4.Whether Section 69B(2) of the Transfer of Property Act, on which the Commissioner of Assize based his decision, covers a purchaser shown to have acted in collusion with, or been party to irregularity in, the acquisition of the subject property.
  5. 5.What order as to costs should issue on the application.

Key legal issues

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01

Whether the intended appeal raises serious arguable points and would be rendered nugatory if successful unless a stay is granted.

Holding

Yes. The court agreed that the intended appeal raised serious arguable points and that, unless a stay was granted, the appeal if successful would be rendered nugatory; the applicants were therefore entitled to a stay in the terms sought in their application.

Reasoning

Bosire JA, concurring with Tunoi JA, applied the two-limb test for an interlocutory stay: the intended appeal must raise serious arguable points, and the appeal, if successful, must be capable of being rendered nugatory unless a stay issues. Both limbs were satisfied: the complaint of collusion between the respondents in the sale of the suit premises, and the prima facie inapplicability of Section 69B(2) of the Transfer of Property Act to a colluding purchaser, made the appeal arguable, while the ruling below would otherwise render success nugatory. A stay in the terms sought followed, with costs in the intended appeal.

p. 2
02

Whether Section 69B(2) of the Transfer of Property Act covers a purchaser who acted in collusion with, or was party to irregularity in, the acquisition of the suit property.

Holding

Prima facie it does not. The provision, on which the Commissioner of Assize based his decision, does not cover a purchaser shown to have colluded or to have been party to any irregularity connected with his acquisition of the subject property.

Reasoning

Bosire JA added a point of statutory construction bearing on the arguability of the appeal. The Commissioner of Assize had decided the matter on the basis of Section 69B(2) of the Transfer of Property Act. In Bosire JA's view that provision does not, prima facie, extend to a purchaser shown to have acted in collusion with, or been party to any irregularity connected with, his acquisition of the property. Because the applicants' major complaint was precisely such collusion between the two respondents in the sale of the premises, the point was seriously arguable and supported the grant of a stay.

p. 2
03

The applicants' complaint of collusion between the two respondents in the sale of the suit premises to the 2nd respondent.

Holding

The court treated the collusion complaint as raising serious arguable points fit for determination in the intended appeal, without resolving it finally at the interlocutory stage.

Reasoning

The applicants' central grievance was that the two respondents colluded in the sale of the suit premises to the 2nd respondent, and that the High Court ruling rested on Section 69B(2) of the Transfer of Property Act without addressing that collusion. The court treated the complaint as seriously arguable for purposes of the stay application rather than deciding it conclusively; it underpinned both the finding of arguability and the conclusion that a stay was necessary to preserve the utility of the intended appeal.

p. 2

Legal principles established

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  • A stay pending appeal is warranted where the intended appeal raises serious arguable points and, unless a stay is granted, the appeal if successful will be rendered nugatory.
  • Section 69B(2) of the Transfer of Property Act does not, prima facie, apply where a purchaser is shown to have acted in collusion with, or been party to any irregularity connected with, his acquisition of the subject property.

Court orders

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  1. 1.A stay granted in terms of the orders sought in the applicants' application before the Court of Appeal, pending the intended appeal from the ruling of 4th May 2000 in H.C.C. Suit No. 479 of 1999 (the precise terms of the application are not reproduced in the extract).
  2. 2.Costs of the application to be in the intended appeal.

The bench

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

majority
SH
majority
BO
concurring

Wrote the judgment

Bosire JA, having read the draft rulings of Tunoi and Shah JJ.A, agreed with the reasoning and conclusions of Tunoi JA. He added that the applicants' major complaint was collusion between the two respondents in the sale of the suit premises to the 2nd respondent, and that Section 69B(2) of the Transfer of Property Act, on which the Commissioner of Assize based his decision, does not prima facie cover a purchaser shown to have acted in collusion with, or been party to irregularity in, the acquisition of the property. He agreed the intended appeal raised serious arguable points, that it would be rendered nugatory if successful unless a stay was granted, and that a stay should issue in the terms sought, with costs of the application in the intended appeal.

Section 69 B (2) of the Transfer of Property Act, on which the learned Commissioner of Assize based his decision does not, prima facie, cover cases where a purchaser is shown to have acted in collusion with or been party to any irregularity connected with his acquisition of the subject property.p. 2
On appeal from
High Court of Kenya at Nairobi
H.C.C. Suit No. 479 of 1999
Jurisdiction invoked
Not expressly stated in the extract. The application (marked 'UR' in the cause title) is an interlocutory application to the Court of Appeal at Nairobi in a pending intended appeal from the ruling of the High Court in H.C.C. Suit No. 479 of 1999; no constitutional or statutory jurisdictional provision is cited in the ruling.

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.

I also agree that the applicants are entitled to a stay in terms of the order sought in their application before us and that the costs of the application be in the intended appeal.
p. 2Final orders - stay granted in the terms sought; costs of the application in the intended appeal
Section 69 B (2) of the Transfer of Property Act, on which the learned Commissioner of Assize based his decision does not, prima facie, cover cases where a purchaser is shown to have acted in collusion with or been party to any irregularity connected with his acquisition of the subject property.
p. 2Scope of Section 69B(2) of the Transfer of Property Act - collusion and irregular acquisition
I agree the applicant's intended appeal raises serious arguable points and that unless a stay is granted their intended appeal, if successful will be rendered nugatory.
p. 2Stay pending appeal - serious arguable points and nugatory appeal
the major complaint by the applicants is that there was collusion between the two respondents in the sale of the suit premises to the 2nd respondent.
p. 2Applicants' complaint of collusion in the sale of the suit premises

Issues in the judgment

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minor

The cause title describes the application as one for an injunction, while the ruling grants a stay; the relief is described inconsistently within the document. Conflicting passages: 'An application for an injunction from the ruling of the High Court of Kenya, at Nairobi (Hon. Ransley, Commissioner of Assize) dated 4th May, 2000' versus 'the applicants are entitled to a stay in terms of the order sought in their application before us'.

material

The extract contains only the ruling of Bosire JA. He records having read the draft rulings of Tunoi and Shah JJ.A and agreeing with Tunoi JA, but those rulings are not included, so the majority's full reasoning and the precise terms of the stay order sought and granted are not available in the provided text.

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "MR. & MRS. AFTAB AHMED v SAVINGS AND LOAN (K) LIMITED & ANOTHER [2000] KECA 207 (KLR)", Case Analysis (2000). Civil Application No. NAI 134 of 2000 (61/2000 UR). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2000/207/eng@2000-06-30

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