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Court of AppealPartially AllowedCivil Appeal No. 242 of 2018· [2019] KECA 209 (KLR)

Mohammed Jawayd Iqbal (Personal representative of the Estate of the Late Ghulam Rasool Jammohamed) v George Boniface Mbogua [2019] KECA 209 (KLR)

Court of Appeal
8 November 2019
10,299 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~41 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal ruled a land buyer who couldn't prove paying the full purchase price could not force the sale, sending the landlord's rent claim back for assessment.

What this practically means

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Executive summary

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The appellant, personal representative of the estate of the late Ghulam Rasool Jammohamed, appealed against the judgment of the Environment and Land Court (Bor, J) which ordered specific performance of an unsigned 1985 sale agreement for L.R. No. 1/387, Ngong Road, and dismissed his counterclaim for rent. A preliminary motion by the respondent seeking Kshs.5,000,000 as security for costs and a stay was dismissed: the Court held that further security must bear a resemblance to the statutory sum of Kshs.2,000 under Rule 107(1) and the motion was overtaken by events. On the appeal, the decisive issue was whether the respondent paid the full purchase price of Kshs.2,000,000. Re-evaluating the evidence as a first appellate court, the Court found that only Kshs.1,500,000 was documented as paid; the alleged cash payment of Kshs.500,000 was not proved, the burden lying on the respondent, and the advocate's letter of 11th December 1985 did not corroborate it. The trial judge had misapprehended that letter. On rescission and waiver, the Court held that although time was of the essence and notices to complete were issued, the appellant's acceptance of later payments may have amounted to forbearance or waiver; nonetheless, the respondent's failure to pay the balance was a repudiation discharging the appellant, and a purchaser who has not paid the full price cannot obtain specific performance, following Wambugu v Njuguna, Kokal Properties and Lammers v Kamunge. The Court also noted, by analogy with Kokal Properties, that the unsigned agreement raised the section 3(3) writing requirement, though unpleaded. The counterclaim for rent/mesne profits was erroneously dismissed without any finding on the valuation evidence, but quantum was undetermined; the Court declined to assess it itself and, under Rule 31, remitted the matter to the Environment and Land Court for assessment of rent/mesne profits/damages only, taking into account the Kshs.1,500,000 paid, before a judge other than Bor, J. The appeal was allowed, the judgment below set aside in entirety, and costs awarded to the appellant.

Key legal issues

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01

Whether the full purchase price was paid

Holding

Nyanja did not pay the contentious Kshs.500,000 in cash; the acknowledged and documented payments totalled Kshs.1,500,000, leaving the purchase price unpaid in part.

Reasoning

The burden lay on Nyanja to prove payment of the Kshs.500,000 in cash to the deceased. The letter of 11th December 1985 stating a balance of Kshs.1.3 Million was not an admission of any such payment; it merely reflected that the Nationwide Finance Kshs.500,000 was treated as paid on instructions though effected later. No correspondence in November 1985 referred to a cash payment, and no date or place could be given for it. The trial judge misapprehended Khan's letter and gave no reasons for preferring Nyanja's version.

p. 9
02

Whether time was of the essence and whether the agreement was rescinded or waived

Holding

Time was of the essence and notices to complete were given, but the appellant's acceptance of payments after the purported rescission may have revived the contract or amounted to waiver/forbearance varying the time for payment.

Reasoning

The agreement expressly made time of the essence, and repeated 21-day notices to complete were issued. However, after the rescission letter the appellant continued engaging with Nyanja and received payments of Kshs.800,000, which could constitute a concession or forbearance amounting to waiver. Had Nyanja paid the full price, the rescission would have been ineffectual. Either way, Nyanja's failure to pay the balance was a repudiation discharging the appellant.

p. 10
03

Whether specific performance was available to Nyanja

Holding

No: a purchaser who has not paid the full purchase price cannot benefit from specific performance; the trial judge's order was erroneous and set aside.

Reasoning

On the settled authority of Sisto Wambugu v Kamau Njuguna, Kokal Properties and Lammers v Kamunge, specific performance is an equitable remedy flowing from a legal right, and a purchaser in breach by non-payment cannot obtain it. The Court also noted, sua sponte by analogy to Kokal Properties, that the sale agreement was never dated nor signed, raising the section 3(3) writing requirement, though the point was not pleaded.

p. 11
04

Whether the counterclaim for rent/mesne profits should succeed and its quantum

Holding

The dismissal of the counterclaim was erroneous in principle, but quantum was not determined below; the issue was remitted for assessment, taking into account the Kshs.1,500,000 paid.

Reasoning

Although Nyanja occupied the property from January 1986 as a purchaser, the appellant was deprived of user and profits, and equity will not allow unjust enrichment. The trial judge framed the rent issue but never evaluated the valuation evidence or made a finding. Damages for breach must also be set off against the Kshs.1,500,000 paid to avoid unjust enrichment of the appellant.

p. 12

Legal principles established

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  • The person asserting payment bears the burden of proving it; payment of the purchase price must be proved to the civil standard, not left to mere assertion.
  • A purchaser who has not performed his part of the bargain by paying the balance of the purchase price cannot obtain specific performance; the vendor is entitled to repudiate for non-payment.
  • Under section 3(3) of the Law of Contract Act (cited as section 3(3) of the Contracts Act, Cap 23), no suit may be brought on a contract for the disposition of an interest in land unless the contract is in writing, signed by all parties, incorporates all agreed terms in one document and each signature is attested by a witness.
  • Further security for costs on appeal, if directed under rule 107(3), must bear a resemblance to the statutory initial sum and cannot be an extraordinary amount.
  • A first appellate court must proceed by way of rehearing and subject the evidence to a fresh and exhaustive re-evaluation, making allowance for not having seen or heard the witnesses.

Court orders

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  1. 1.The motion dated 29th March 2019 seeking security for costs of Kshs.5,000,000 is dismissed with costs being in the appeal
  2. 2.The judgment and decree of the Environment and Land Court is set aside in entirety
  3. 3.The matter is remitted to the Environment and Land Court under rule 31 for assessment of the rent/mesne profits/damages the appellant is entitled to, taking into account the sum of Kshs.1,500,000 paid towards the abortive purchase, to be handled by a Judge other than Bor, J, expeditiously
  4. 4.The appellant shall have the costs of this appeal

Authorities

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Legislation

  • Court of Appeal Rules, 2010Rule 107(1)
  • Court of Appeal Rules, 2010Rule 107(3)
  • Court of Appeal Rules, 2010Rule 115
  • Court of Appeal Rules, 2010Rule 29(1)(c)
  • Court of Appeal Rules, 2010Rule 31
  • Court of Appeal Rules, 2010Second Schedule Part 3
  • Civil Procedure RulesOrder 42 Rule 14
  • Evidence ActSections 107, 108, 109
  • Contracts Act (Cap 23, Laws of Kenya)Section 3(3)
  • Advocates Remuneration Order

Cases cited (15)

  • PETER -vs- SUNDAY POST LIMITED
    [1958] EA 424
  • SELLE -vs- ASSOCIATED MOTOR BOAT COMPANY LIMITED
    [1968] EA 123
  • SUMARIA & ANOTHER -vs- ALLIED INDUSTRIES LIMITED
    [2007] KLR 1
  • SISTO WAMBUGU -vs- KAMAU NJUGUNA
    [1983] eKLR
  • LAMMERS -vs- KAMUNGE
    [1991] KLR 345
  • GURDEN SINGH BIRDI AND NARINDER SINGH & ANOTHER -vs- ABUBAKAR MADHUBUTI
    [1997] eKLR
  • ELIJAH KIPKORIR BARMALEL & ANOTHER -vs- JOHN KIPLAGAT CHEMWENO & 3 OTHERS
    [2010] eKLR
  • LUCY NJERI NJOROGE -vs- KAIYAHE NJOROGE
    [2015] eKLR
  • WAMBUGU -vs- NJUGUNA
    [1983] KLR 172
  • KOKAL PROPERTIES DEVELOPMENT LIMITED -vs- MALOO & 3 OTHERS
    [1993] KLR 52
  • Sisto Wambugu & Kamau Njuguna
    [1988] 1 KAR 217
  • MOHAMMED ABDIMOHAMUD -vs- AHMED ABDULLAHI MOHAMAD & 3 OTHERS, AHMED ALI MUKTAR (I.P)
    [2019] eKLR
  • NATIONAL ASSEMBLY & ANOTHER -vs- INSTITUTE FOR SOCIAL ACCOUNTABILITY & 6 OTHERS
    [2017] eKLR
  • CAPTAIN HARRY GANDY -vs- CASPAIR AIR CHARTERS LIMITED
    [1956] EACA 139
  • GALAXY PAINTS COMPANY LIMITED -vs- FALCON GUARDS LIMITED
    [2000] eKLR
On appeal from
Environment and Land Court at Milimani
ELC No. 1107 of 2013
Jurisdiction invoked
First appellate jurisdiction under the Court of Appeal Rules (Rule 29(1)(c)); appeal as of right from the Environment and Land Court

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Mohammed Jawayd Iqbal (Personal representative of the Estate of the Late Ghulam Rasool Jammohamed) v George Boniface Mbogua [2019] KECA 209 (KLR)", Case Analysis (2019). Civil Appeal No. 242 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/209/eng@2019-11-08

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