Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELCPartially AllowedNot stated in judgment· [2015] KEELC 720 (KLR)

Rosemary Chebet Koros v Samwel Kiprono Sang [2015] KEELC 720 (KLR)

Environment & Land Court
27 March 2015
1,736 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

#

A Kenyan court allowed a defendant to amend his defence and counterclaim a fraudulent land sale, but only after depositing Kshs 150,000 as security for costs.

What this practically means

#

Executive summary

#
The defendant in a suit for eviction and permanent injunction brought by the registered purchaser of LR No. 631/457 applied under Order 7 Rules 8 and 9 and Order 8 Rules 3 and 5 of the Civil Procedure Rules, and Sections 1A and 3A of the Civil Procedure Act, for leave to amend his defence to include a counterclaim and to enjoin Housing Finance of Kenya Limited and David Musyoka Nzuku as 2nd and 3rd defendants to the counterclaim. The counterclaim alleged the chargee's sale was fraudulent - no notification, advertisement, auction or valuation, and an undervalue sale - and sought nullity of both the sale to Nzuku and the subsequent sale to the plaintiff, plus damages. The plaintiff opposed, arguing res judicata (an earlier third party application having been disallowed by Waithaka J on 27th March 2014) and that no proper counterclaim lay against her. Munyao Sila J rejected res judicata, holding that no prior application to amend to introduce a counterclaim had been made and that the counterclaim was genuinely against the plaintiff since its success would nullify her title. However, the court was skeptical of the counterclaim's merits because the property was sold under the chargee's statutory power of sale, and Section 69B of the Transfer of Property Act protects the purchaser's title from impeachment save for fraud, with the remedy of an aggrieved mortgagor lying in damages. Leave to amend was granted conditionally upon deposit of Kshs. 150,000/= as security for costs within 21 days, failing which the leave lapses and the suit proceeds as filed; costs of the application were awarded to the plaintiff.

Key legal issues

#
01

Whether the application is res judicata

Holding

It is not; the earlier rejected application sought to join the parties as third parties, whereas this application seeks amendment of defence to introduce a counterclaim, which has never been canvassed

Reasoning

The court distinguished the earlier disallowed third party application, noting no previous application to amend the defence to introduce a counterclaim had been made. It also held the counterclaim is indeed against the plaintiff since its success would nullify her title, and that a separate suit would raise the same issues without prejudice to the plaintiff.

p. 2
02

Whether leave to amend should be granted and on what terms

Holding

Leave granted, but conditional on the defendant depositing Kshs. 150,000/= as security for costs, given the court's view that the intended counterclaim appears weak under Section 69B of the Transfer of Property Act

Reasoning

While courts are liberal in allowing amendments absent unremediable prejudice, the court was skeptical of the counterclaim because the sale was under a chargee's statutory power of sale under the Transfer of Property Act, under which the purchaser's title is protected and the defendant's remedy lies in damages against the chargee. Conditional leave balanced the defendant's right to plead with the plaintiff's protection.

p. 3
03

Status of the intended added parties

Holding

HFCK and David Musyoka Nzuku are to be 2nd and 3rd defendants to the defendant's counterclaim, not defendants to the plaintiff's claim

Reasoning

The court clarified the nature of the joinder: the proposed parties are enjoined only as defendants to the counterclaim, not to the plaintiff's claim for eviction and injunction.

p. 3

Legal principles established

#
  • Amendments to pleadings sought before hearing should be freely allowed if they can be made without injustice, injustice being absent where the other side can be compensated by costs
  • A purchaser at a sale in exercise of a mortgagee's statutory power of sale takes a title not impeachable for lack of notice, irregular exercise of the power, or absence of a case for sale, and a person damnified has his remedy in damages

Court orders

#
  1. 1.The defendant is granted leave to amend his defence to include a counterclaim, conditional on depositing Kshs. 150,000/= as security for costs
  2. 2.The security be deposited in court within 21 days and the amended defence filed and served within 14 days of the deposit
  3. 3.In default of depositing the security within 21 days, the leave will automatically lapse and the suit to proceed as filed
  4. 4.The defendant will bear the costs of the application

Authorities

#

Legislation

  • Civil Procedure RulesOrder 7 Rules 8 and 9
  • Civil Procedure RulesOrder 8 Rules 3 and 5
  • Civil Procedure ActSections 1A and 3A
  • Registration of Titles ActCAP 281 (repealed)
  • Transfer of Property ActSection 69B (now repealed)

Cases cited (1)

  • Eastern Bakery v Castelino
    (1959) EA 461
Jurisdiction invoked
Order 7 Rules 8 and 9; Order 8 Rules 3 and 5 of the Civil Procedure Rules, and Sections 1A and 3A of the Civil Procedure Act

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Rosemary Chebet Koros v Samwel Kiprono Sang [2015] KEELC 720 (KLR)", Case Analysis (2015). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2015/720/eng@2015-03-27

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