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Court of AppealPartially AllowedCivil Appeal No. 85 of 2015 (Kisumu)· [2017] KECA 187 (KLR)

Nova Ogoti Rongai v Samuel Kebati Osoro & another [2017] KECA 187 (KLR)

Court of Appeal of Kenya
20 July 2017
2,722 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal cancelled a land sale made without a grant of letters of administration, ruling the buyer got no valid title.

What this practically means

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Executive summary

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This was a first appeal to the Court of Appeal at Kisumu against the judgment of Kibunja, J of the High Court at Busia, which had dismissed the appellant's suit seeking cancellation of transfers of Title Number Bukhayo/Bugengi/1533, registered in the name of his deceased mother, to the respondents. The property had been charged to National Bank of Kenya during the deceased's lifetime to secure her husband's loan. After her death in 1988, and with the Bank's acquiescence, the husband sold the property in 2001 to the 1st respondent, who later resold it to the 2nd respondent. The trial Judge had found the sale was effected by the Bank in exercise of its statutory power of sale, obviating succession proceedings, and that the respondents were innocent purchasers. The Court of Appeal, in a unanimous judgment, reversed. It found the trial Judge's finding on the statutory power of sale to rest on a misapprehension of the evidence, since the Bank was not party to the sale agreement and the father himself testified he sold the property. The Court held that the father, having never obtained a grant of representation, lacked legal capacity under Sections 45(1) and 55 of the Law of Succession Act to sell the deceased's property, and that his purported sale amounted to intermeddling with the estate. The power of attorney, limited to obtaining a loan, could not survive the donor's death. Accordingly the 1st respondent obtained no good title to pass to the 2nd respondent. The appeal was allowed, the judgment and decree of the High Court set aside, the transfers nullified and cancelled, the title ordered to revert into the name of the deceased, and each party ordered to bear its own costs both in the High Court and in the appeal.

Key legal issues

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01

Whether the Bank exercised its statutory power of sale

Holding

The trial court's finding that the Bank sold the property in exercise of its statutory power of sale was not supported by the evidence; it was the appellant's father who sold the property to the 1st respondent.

Reasoning

The father approached the Bank to redeem the property and offered to find a buyer; the Bank merely expressed no objection and was not privy to the sale agreement, which described the father as acting on the Bank's authority. The father himself testified that he sold the property. There was therefore no material supporting the finding of a statutory power of sale, which rested on a misapprehension of the evidence.

p. 4
02

Capacity to deal with a deceased person's property

Holding

James Masaki Rongai, not having applied for letters of administration, had no legal capacity to sell the deceased's property; his purported sale was intermeddling with the estate.

Reasoning

No grant of letters of administration was ever taken out by the father. Sections 45(1) and 55 of the Law of Succession Act prohibit dealing with a deceased's property without a grant. Relying on the court's precedents, the Court held that without a confirmed grant the father lacked legal capacity to sell and transfer the property, making the transaction a nullity.

p. 5
03

Effect of death on the power of attorney

Holding

The power of attorney given by the deceased to her husband, limited to obtaining a loan, could not survive her death or confer authority to transfer the property thereafter.

Reasoning

An agency is determined by the death of the principal. Even if the power of attorney existed, it was limited to getting a loan during the deceased's lifetime. It could not authorize any transaction after her death in 1988, so the 2001 transfer founded on it conveyed no valid title to the 1st respondent.

p. 5

Legal principles established

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  • A person who has not obtained a grant of letters of administration has no legal capacity to sell or transfer property of a deceased person; purporting to do so is intermeddling with the estate under Sections 45(1) and 55 of the Law of Succession Act.
  • A power of attorney, even one limited to obtaining a loan, is extinguished by the death of the donor and cannot confer authority to deal with the donor's property after death.
  • An appellate court will not interfere with findings of fact by a trial judge unless those findings are not based on evidence, are based on a misapprehension of the evidence, or the judge acted on wrong principles.
  • A purchaser who derives title from a transfer made without capacity under a void transaction does not acquire a good title that can be passed on.

Court orders

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  1. 1.The appeal is allowed
  2. 2.The judgment and decree of the High Court dismissing the appellant's suit with costs is set aside
  3. 3.An order nullifying and cancelling the transfer of Title Number Bukhayo/Bugengi/1533 from the name of the deceased
  4. 4.The title to the property shall revert into the name of the deceased
  5. 5.Each party to bear its own costs of the proceedings in the High Court and of the appeal

Authorities

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Legislation

  • Law of Succession ActSections 45(1), 55
  • Law of Succession ActSection 45
  • Land Control ActSections 6, 8
  • Land ActSection 99
  • Land ActSection 90
  • Registered Land Act (Cap 300, repealed)Section 74
  • Limitation of Actions ActGeneral (pleaded in defence)

Cases cited (3)

  • Selle and another versus Associated Motor Boat Company Limited & 2 others
    [1968] EA 123
  • Lly Odhiambo Onyuka vs. Ayub Odhiambo Migwalla
    [2005] eKLR
  • Peter Ombui Nyangoto vs. Elizabeth Matundura & another
    [2013] eKLR
On appeal from
High Court of Kenya at Busia
Busia ELC No. 30 of 2012
Jurisdiction invoked
First appellate jurisdiction under the Court of Appeal's statutory appellate powers (appeal as of right from the High Court in a civil suit)

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, "Nova Ogoti Rongai v Samuel Kebati Osoro & another [2017] KECA 187 (KLR)", Case Analysis (2017). Civil Appeal No. 85 of 2015 (Kisumu). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2017/187/eng@2017-07-20

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