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Court of AppealDismissedCivil Appeal No. 54 of 2017

Musk Deer Limited v Benjamin K. Kipkurui & another [2018] KECA 400 (KLR)

Court of Appeal
5 July 2018
5,951 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's Court of Appeal confirmed that a property sale in flawed court proceedings is void and transfers no title, even to a buyer who claims innocence.

What this practically means

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Executive summary

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The Court of Appeal at Mombasa (Visram, Karanja & Koome, JJA) dismissed this appeal against a High Court ruling (Otieno, J.) which had allowed Benjamin Kipkurui's constitutional petition. The 1st respondent's property was sold in a purported rates recovery auction in March 2007 after ex parte proceedings in CMCC No. 2094 of 2006 in which summonses were served on a post office box never held by him and no demand notice under the Rating Act was issued; a vesting order then transferred the property to Musk Deer Limited. Two issues framed for determination were whether the constitutional petition was competent despite a pending appeal, and whether the appellant was an innocent purchaser for value without notice. The Court held the petition was properly before the High Court under Articles 22(1) and 23(1), as the complaints went to fair hearing, fair administrative action and arbitrary deprivation of property, and the pending appeal raised different issues, so there was no abuse of process. The Court affirmed that the 1st respondent was condemned unheard in breach of natural justice and Articles 10 and 40, that the ex parte decree and sale were nullities, and that consequently no title could vest in the appellant, who had also varied the conditions of sale, procured vesting and provisional titles irregularly and conducted no due diligence. The appeal was dismissed, and, noting the appellant may have fallen prey to fraudulent cartels and that the initiating party disowned the sale, the Court directed each party to bear their own costs in both courts.

Questions the Court framed

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

  1. 1.Whether the 1st respondent was entitled to the remedies sought by way of a constitutional petition when he had invoked the appellate jurisdiction by appealing against the orders of the subordinate court
  2. 2.Whether the High Court had jurisdiction to determine the petition, including rights appertaining to title to land, rather than the Environment and Land Court
  3. 3.Whether the court erred by not finding the appellant was an innocent purchaser for value of the suit premises without notice

Key legal issues

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01

Whether the constitutional petition was barred by the existence of an appeal, or belonged in the ELC

Holding

Neither. The petition raised mixed issues of fair hearing, fair administrative action, abuse of process and arbitrary deprivation of property, within the High Court's jurisdiction under Articles 22(1) and 23(1); filing before the ELC would have been a procedural technicality.

Reasoning

Article 22(1) gives every person the right to institute proceedings claiming a Bill of Rights violation and Article 23(1) confers jurisdiction on the High Court. The core complaint was breach of the right to a hearing and an ex parte null sale by a court without jurisdiction. The pending appeal (Civil Appeal No. 178 of 2007) raised different issues (the preliminary objection and functus officio) so there was no duplication or abuse of process.

p. 4
02

Whether the 1st respondent's rights to a fair hearing, fair administrative action and protection of property were violated

Holding

Yes. He was condemned unheard: summonses were served on a post office box never held by him, no statutory demand notice under the Rating Act was issued, and the advocate who conducted the proceedings admitted the judgment could not lawfully stand. The ex parte proceedings and resultant sale were a nullity.

Reasoning

The audi alteram partem rule was breached, offending Articles 10, 40, 47 and 50. Service was on the wrong address, confirmed by Posta Kenya, and uncontroverted. The 2nd respondent disowned the sale, confirmed no demand notice was issued as required by Section 17 of the Rating Act, and that the instructing party had no contract to collect rates. Following Macfoy v United Africa Company, a void act is incurably bad and needs no setting aside.

p. 5
03

Whether the appellant was an innocent purchaser for value without notice

Holding

No. The appellant varied the conditions of sale without court reference, obtained a vesting order while misrepresenting that the balance had been paid, obtained a provisional title without compliance with Section 71 of the Registration of Titles Act, and did no due diligence. In any event, a void sale conveys no title.

Reasoning

The balance of the purchase price was paid on 25th April 2007, after the property had been vested on 19th April 2007 on the misrepresentation that it had been paid. A provisional title was procured without the gazette notice procedure for lost titles, yet the title was with the 1st respondent. Even assuming innocence, the decree being a nullity, nothing valid passed to the purchaser.

p. 6

Legal principles established

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  • A decree or order issued in ex parte proceedings conducted without service and without jurisdiction is a nullity, and every consequential step founded on it, including a sale and vesting of property, is equally void and conveys no title even to a purchaser who might otherwise claim innocence.
  • A person who alleges violation of fundamental rights is not barred from pursuing a constitutional petition merely because an alternative appellate remedy exists, where the complaints concern breaches of fair hearing, fair administrative action and arbitrary deprivation of property.
  • Compliance with the statutory demand notice requirements of the Rating Act is mandatory; absence of such notice and improper service deprive the subordinate court of jurisdiction over the rate defaulter's property.

Court orders

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  1. 1.Appeal dismissed
  2. 2.Each party to bear their own costs both in this appeal and in the High Court

The bench

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

majority
majority
Martha Karambu Koome
M. K. KoomeJA
Currently serving
majority
On appeal from
High Court of Kenya at Mombasa
HC Constitutional Petition No. 9 of 2014
Jurisdiction invoked
First appeal under the Court of Appeal's appellate jurisdiction; the petition below was anchored on Articles 22(1), 23(1) and 165 of the Constitution

Relief refused

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Appellant's prayer to be found an innocent purchaser for value without notice and to have the appeal allowed

The decree and sale being a nullity, no title could vest in the appellant; the appellant also failed to comply with conditions of sale and conducted no due diligence

p. 6

Costs

We direct each party to bear their own costs.

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.

Therefore this appeal lacks merit and it is hereby dismissed.
p. 6Disposition - appeal dismissed
In the event, we are reluctant to condemn the appellant to bear the costs both for this appeal and in the High Court. We direct each party to bear their own costs.
p. 6Costs order
In Any event, even if the appellant was an innocent purchaser, which we think it was not, the decree having been a nullity all consequential steps that were taken pursuant thereto were also a nullity in law.
p. 6Nullity of sale and title
In our considered view we see nothing in the Constitution, statute or procedure that barred the 1 st respondent from seeking redress against the detailed violations of his constitutional rights.
p. 4Availability of constitutional petition despite appellate remedy
If an act is void, then it is in law a nullity. It is not only bad, but it is incurably bad.
p. 5Void acts - Macfoy principle adopted

Issues in the judgment

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minor

The judgment inconsistently renders the 1st respondent's name in the subordinate court case as 'Benjamin Kipkurui' and 'Benjamin Kipkulei'

minor

The post office box number in the service is inconsistently stated as 84209 and 84029 in different passages

minor

The parties are numbered inconsistently: the opening paragraph describes the Municipal Council of Mombasa as the '3rd respondent' while the cause title lists only two respondents

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, "Musk Deer Limited v Benjamin K. Kipkurui & another [2018] KECA 400 (KLR)", Case Analysis (2018). Civil Appeal No. 54 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/400/eng@2018-07-05

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