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Court of AppealPartially AllowedCivil Appeal (from ELC Case No. 358 of 2016)· [2024] KECA 160 (KLR)

Omar Awadh Mbarak v Freedom Limited

Court of Appeal of Kenya
23 February 2024
15,797 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~63 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal cancelled a company's land title, ruling long, peaceful possession beats a paper title of doubtful origin.

What this practically means

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Executive summary

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This was a first appeal from the Environment and Land Court at Mombasa (Matheka, J.), which had allowed Freedom Limited's suit declaring it the registered proprietor of Plot No. 1948 (Original No. 412/10) Section V Mainland North (CR 32564) and dismissed the appellant's counterclaim on behalf of the estate of his grandfather, Mbarak Awadh Salim. The appellant's case was that his grandfather purchased the original Plot No. 287 Section V (983 acres, CR 6302) in 1978, took vacant possession, but died in 2000 before registration of the transfer. The Court of Appeal framed six issues, including whether the competing claims concerned the same property, what the suit property now constituted, and who had established seisin as root of title. The Court found both claims related to the same parcel, the property having been subdivided in 1956, with portions awarded to the Crown and the residual 973 acres traced to the deceased's purchase. It held that the land register was reconstructed at the respondent's behest without the Gazette Notice required by section 33(5) of the Land Registration Act and using documents supplied solely by the respondent, tainting the reconstructed register and the respondent's root of title. Applying the doctrine of seisin and the rule that a registered proprietor must prove the legality of acquisition when the root of title is challenged, the Court held the deceased's 22 years of vacant possession prevailed. Allowing the appeal, it set aside the trial judgment, dismissed the respondent's suit, allowed the counterclaim, declared the 2010 transfer and the respondent's title null and void, declared the estate the beneficial owner of Plot No. 287/3 (973 acres), issued a mandatory injunction for vacant possession, and awarded general damages of KShs. 5,000,000, with costs of the appeal to the appellant.

Key legal issues

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01

Whether the appellant's and respondent's competing claims relate to the same property

Holding

The Court agreed with the trial court that both claims relate to one and the same property, despite unexplained disparities in the original number and the subsequent transactions.

Reasoning

The original property was Plot No. 287 Section V MN, 983 acres, registered as CR 6302/1. Both parties held original copies of the Certificate of Ownership dated 26th October 1923 certified by the same person; the only marked difference was that the appellant's copy contained only the first fourteen entries while the respondent's contained fifty-four. David Gibson first transferred to Mohamed Afzal Khan, after which various dealings changed the title number and size of the property.

p. 12
02

What now constitutes the suit property

Holding

The property registered as CR 32564, Plot No. 1948 (Original No. 412/10) Section V Mainland North, constitutes the suit property, whose original number was altered from Original No. 287/3; the change from 287/3 to 412/10 is an irregularity that remains unexplained.

Reasoning

The record showed the property was first subdivided on 10th April 1956 into three subdivisions; 287/1 and 287/2 were awarded to the Crown and 287/3, measuring about 973 acres, remained with Mohamed Afzal Khan and was the property purchased by the deceased. Subsequent surrender of 16.19 hectares preceded issuance of CR 32564. The identity and size of the property to which the appellant lays claim had long changed, and the unexplained change in the original number raises questions about the respondent's root of title.

p. 14
03

Whether the register reconstructed at the respondent's instance was properly reconstructed

Holding

The reconstruction was undertaken without the requisite Gazette Notice and purely on documents supplied by the respondent, shutting out the appellant and other potential objectors, thereby raising questions about the integrity of the reconstructed register.

Reasoning

Section 33(5) of the Land Registration Act mandates that the Registrar reconstruct a lost register only after necessary enquiries and sixty days' notice in the Gazette. Nothing on record suggested any Gazette Notice was published. The Registrar embarked on reconstruction purely on the respondent's documents despite knowledge that ownership was contested, and the DCI was investigating the original title. The postal search obtained after such defective reconstruction formed the basis of the trial court's holding, in disregard of the appellant's claim and the law.

p. 16
04

Who, as between the deceased's estate and the respondent, has established seisin as the root of title

Holding

The deceased and his household had continuous and uninterrupted vacant possession for 22 years after purchase; the doctrine of seisin applied in favour of the deceased's estate and the respondent's title could not stand against it.

Reasoning

The deceased purchased the property in 1978, took vacant possession with his household for 22 years, and held the original Certificate of Ownership, Sale Agreement and unregistered Transfer. None of the parties named in entries 15 to 54 of the respondent's Certificate of Ownership ever challenged the deceased's occupation. The unregistered agreement and transfer were not bereft of legal effect, and the respondent's Certificate of Ownership, based on documents it alone supplied for the defective reconstruction, went against the doctrine of seisin and the deceased's constitutional right to property.

p. 25
05

Whether the respondent's root of title stands

Holding

On the balance of probabilities the respondent's root of title is untenable; the respondent had to go beyond the instrument of title and prove the legality of its acquisition, which it failed to do.

Reasoning

Citing Dina Management and Munyu Maina, the Court held that establishing a good root of title is the first step to being a bona fide purchaser, and that a registered proprietor whose root of title is challenged must prove legality of acquisition. The respondent's Certificate of Title No. CR 32564 could only have been issued under the Registration of Titles Act if the land had been brought under that Act, but there was no evidence of any such endorsement; the Certificates of Ownership were issued under the Land Titles Ordinance, 1908. The unexplained change in original number and lack of transactional documents cast further doubt.

p. 26
06

Whether the learned Judge was correct in allowing the respondent's suit and dismissing the counterclaim

Holding

The Judge's decision was made in error: she misinterpreted the two Gazette Notices and failed to pronounce on other issues, allowing the respondent's claim in the face of the doctrine of seisin.

Reasoning

The Judge's finding that the respondent proved its case rested on a Gazette Notice dated 25th January 1955 showing acquisition of 6.1 acres, and a second Gazette Notice allegedly showing the deceased died on 15th June 1967. The first was merely a declaration that part of the property was required for a public purpose; the second related to an application by Mohamed Afzal Khan of Mombasa for letters of administration of the estate of a different Mohamed Afzal Khan of Eldoret who died on 15th January 1967. The Judge also failed to query the absence of transactional documents supporting the entries and did not pronounce on other issues raised.

p. 26

Legal principles established

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  • All titles to land are ultimately based upon possession; the title of the man seised prevails against all who can show no better right to seisin, and possession is nine-tenths ownership.
  • When a registered proprietor's root of title is under challenge, it is not sufficient to dangle the instrument of title as proof of ownership; the proprietor must prove the legality of how the title was acquired.
  • A certificate of title is prima facie evidence of ownership, defeasible on evidence of illegality, irregularity in its acquisition or corrupt dealing; the sanctity of title rests on integrity and the rule of law, not merely formal registration.
  • Reconstruction of a lost or destroyed land register under section 33(5) of the Land Registration Act requires the Registrar to make necessary enquiries and give sixty days' notice in the Gazette before reconstruction; reconstruction based solely on documents supplied by one interested party, without notice, is improper.
  • In ordinary cases the original number of a parcel of land remains unaltered despite subsequent subdivisions and transfer or surrender; an unexplained change in the original number casts doubt on the propriety of the root of title.

Court orders

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  1. 1.The appeal be and is hereby allowed as prayed
  2. 2.The judgment and decree of the Environment and Land Court at Mombasa delivered on 19th January 2022 in ELC Case No. 358 of 2016 be and is hereby set aside and substituted with an order dismissing the Respondent's suit with costs to the Appellant
  3. 3.The Appellant's Counterclaim dated 16th November 2018 is allowed: it is declared that the purported transfer of the suit property to the respondent on 12th November 2010 and irregularly registered as C.R. No. 32564 is null and void and of no effect
  4. 4.The certificate of title purportedly issued in favour of the respondent is likewise null and void
  5. 5.A declaration that the estate of the late Mbarak Awadh Salim is the beneficial owner of all that parcel of land measuring Nine Hundred and Seventy-Three (973) Acres or thereabouts known as Plot No. 287/3 Section V, Province of Seyidie, delineated on Deed Plan No. 21108
  6. 6.The appellant be at liberty to seek cancellation of the certificate of title purportedly issued to the respondent on 12th November 2010, and is entitled to registration of the suit property in favour of the estate of Mbarak Awadh Salim (Deceased) and to pursue issuance of a certificate of title to the deceased's estate
  7. 7.A mandatory injunction compelling the respondent, its servants or agents, to relinquish vacant possession of the suit property to the estate and to demolish or remove all surrounding walls, buildings and structures erected thereon within 45 days, failing which the appellant may undertake the demolition at the respondent's cost
  8. 8.An order of injunction restraining the respondent, its servants or agents from entering, taking possession of, or interfering with the suit property
  9. 9.The respondent do pay to the appellant general damages in the sum of KShs. 5,000,000
  10. 10.The respondent do bear the costs of the appeal together with interest thereon at court rates
On appeal from
Environment and Land Court of Kenya at Mombasa
ELC Case No. 358 of 2016
Jurisdiction invoked
First appeal to the Court of Appeal under rule 31(1)(a) 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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Later judgments citing this (8)

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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, "Omar Awadh Mbarak v Freedom Limited", Case Analysis (2024). Civil Appeal (from ELC Case No. 358 of 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/160/eng@2024-02-23

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