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Court of AppealPartially AllowedCivil Application No. 61 of 2020· [2020] KECA 176 (KLR)

Muthithi Investments Company Limited v Commissioner of Prisons &2 others [2020] KECA 176 (KLR)

Court of Appeal
20 November 2020
1,726 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 halted the cancellation of Muthithi Investments' Muranga land title, ruling a registered owner facing transfer to a non-party deserves protection pending appeal.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (Okwengu, Warsame and J. Mohammed, JJ.A) on a notice of motion dated 28th March 2020 brought by Muthithi Investments Company Limited under Rule 5(2)(b) of the Court of Appeal Rules, seeking stay of execution of the judgment and orders of the Environment and Land Court at Murang'a (Kemei, J) dated 27th January 2020 in E.L.C Petition No. 1B of 2017. The trial court had ordered the revocation and cancellation of the applicant's title to Muranga Municipality Block 2/525 and permanently restrained the applicant from interfering with the property, declaring it to belong to the Muranga Juvenile Remand Home. The applicant, claiming to be a bona fide purchaser for value registered in 1997 and in possession for over 16 years, argued it had an arguable appeal and that the appeal would be rendered nugatory because title would be transferred to an entity that was not a party to the suit and had never claimed ownership. The respondents opposed, contending the judgment was well reasoned and no loss would be suffered. Applying the settled twin principles for Rule 5(2)(b) applications restated in Ishmael Kagunyi Thande v Housing Finance Company Limited, the court found the draft memorandum raised arguable issues and that the applicant, as registered owner at risk of losing the property to a non-party, would suffer a nugatory appeal without stay. The court allowed the application, stayed execution of the judgment and decree of the Environment and Land Court pending hearing and determination of the intended appeal, and ordered that costs of the application abide the outcome of the appeal.

Key legal issues

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01

Arguability of the intended appeal

Holding

The draft memorandum raised arguable issues, including whether a bona fide purchaser's title can be revoked without proof of fraud and whether land can be decreed to a non-party who never claimed it, satisfying the first limb

Reasoning

The court examined the draft memorandum of appeal and identified grounds including failure to hold the applicant was a bona fide purchaser for value without notice, the award of the suit property to an entity that was not a party and had never claimed it, and the applicant's registered ownership. It found these grounds raised arguable issues, which need not be arguable with certainty of success, only not frivolous.

p. 2
02

Whether the appeal would be rendered nugatory

Holding

Since the applicant was the registered owner at risk of losing the suit property to a non-party that had never laid claim to it, the intended appeal would be rendered nugatory if stay was not granted

Reasoning

The court noted the applicant was the registered owner of the suit property and stood at risk of losing it to the Muranga Juvenile Remand Home, an entity that was not a party to the suit and had not laid claim to the property. In those circumstances, cancellation of title before the appeal was heard would render the appeal nugatory, satisfying the second limb.

p. 2

Legal principles established

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  • An applicant under Rule 5(2)(b) must establish both an arguable appeal and that the appeal would be rendered nugatory if stay is not granted
  • The two principles governing Rule 5(2)(b) applications are well settled: arguability and nugatory-ness

Court orders

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  1. 1.Orders staying the execution of the judgment and decree of the Environment and Land Court dated 27th January, 2020 pending the hearing and determination of the intended appeal
  2. 2.The costs of the application shall abide the outcome of the intended appeal

Authorities

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Legislation

  • Court of Appeal RulesRule 5(2)(b)

Cases cited (2)

  • Elizabeth Wambui Githinji & 29 others v Kenya Urban Roads Authority & 4 Others
    [2019] eKLR, Civil Appeal Nos. 156 & 160 of 2013 (Consolidated)
  • Ishmael Kagunyi Thande v Housing Finance Company Limited
    Civil Application No 156 of 2006 (UR)
On appeal from
Environment and Land Court at Murang'a
E.L.C Petition No. 1B of 2017
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

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, "Muthithi Investments Company Limited v Commissioner of Prisons &2 others [2020] KECA 176 (KLR)", Case Analysis (2020). Civil Application No. 61 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/176/eng@2020-11-20

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