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ELCDismissedApplication dated 29/1/2015 (Eldoret)· [2015] KEELC 386 (KLR)

Joshua Kiprop Kiptanui v Agricultural Finance Corporation [2015] KEELC 386 (KLR)

High Court of Kenya
21 April 2015
1,824 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The applicant, Joshua Kiprop Kiptanui, applied by motion dated 29 January 2015 for leave to file suit out of time against the Agricultural Finance Corporation. He claimed that the respondent unlawfully and fraudulently registered itself as proprietor of his land, L.R. Uasin Gishu/Ainabkoi/134 (45.5 hectares), following an allegedly improper auction of 13 January 2000, contending that although he had repaid a 1989 loan in full, the Corporation acquired the property itself rather than selling it, and that the cause of action, which arose on 20/12/2000, was over 15 years old. He relied on sections 7, 9 and 26 of the Limitation of Actions Act (Cap 22). The respondent, through the affidavit of its Corporation Secretary Rose A. Ochanda, opposed the application, asserting that the loan of Kshs.807,250 was never cleared, statutory notices were properly issued, and the Corporation validly purchased the property as highest bidder at a public auction on 13 January 2000 in Burnt Forest advertised in the newspapers; the fraud allegations were said to be afterthoughts, and the 15-year delay unexplained. The court held that section 26 does not require proof of fraud itself but that time runs from discovery of the fraud; however, the applicant's own documents showed he knew before 2006 that the respondent was the registered proprietor, and he failed to discharge the burden of showing when he became aware. The court found the applicant was aware of the sale process and even negotiated with the respondent. The application was dismissed with costs.

Key legal issues

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01

Whether the applicant satisfied section 26 of the Limitation of Actions Act to justify extension of time on the ground of fraud or mistake

Holding

The court held that section 26 does not require proof of fraud per se, only that the action is based on fraud, in which case time runs from discovery; but the applicant knew of the sale in 2000 and therefore the limitation period had run.

Reasoning

The court noted the applicant acknowledged the suit was time-barred and sought extension on grounds of fraud or mistake under section 26 of Cap 22. The supporting affidavit and documents JKK 4(a) and 4(b) showed the applicant knew before 2006 that the respondent was the registered proprietor, yet took no action. The respondent showed it purchased the property as highest bidder at a public auction on 13/1/2000 advertised in the newspapers, so the applicant could not claim the process was concealed.

p. 3
02

Burden of proof on the applicant seeking extension of the limitation period

Holding

The applicant had the burden to prove he was unaware of the sale and to state when he first became aware; he failed to do so.

Reasoning

The court found the applicant skirted around the issue of when he discovered the alleged fraud. Since documents attached to his own affidavit suggested knowledge before 2006, and the auction was advertised in newspapers, the inference was that he was aware of the sale from 2000. Without explaining the delay of approximately 15 years, the requirements of section 26 were not met and leave could not issue.

p. 3

Legal principles established

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  • Under section 26 of the Limitation of Actions Act, time begins to run when the plaintiff discovers the fraud, and the applicant bears the burden of proving when he became aware of the alleged fraud

Court orders

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  1. 1.The application dated 29/1/2015 seeking leave to file suit out of time is dismissed
  2. 2.Costs of the application to the respondent

Authorities

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Legislation

  • Limitation of Actions Act (Cap 22, Laws of Kenya)Section 7
  • Limitation of Actions Act (Cap 22, Laws of Kenya)Section 9
  • Limitation of Actions Act (Cap 22, Laws of Kenya)Section 26
  • Agricultural Finance Corporation ActSection 33
Jurisdiction invoked
Sections 7, 9 and 26 of the Limitation of Actions Act (Cap 22, Laws of Kenya)

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, "Joshua Kiprop Kiptanui v Agricultural Finance Corporation [2015] KEELC 386 (KLR)", Case Analysis (2015). Application dated 29/1/2015 (Eldoret). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2015/386/eng@2015-04-21

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