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ELCPartially AllowedNotice of Motion dated 29th August, 2014 (suit arising from HCCC filed 17th January, 1990)· [2017] KEELC 1001 (KLR)

Njenga Kubutha v Jane Ngina Kukan & 2 others [2017] KEELC 1001 (KLR)

Environment and Land Court
3 November 2017
5,963 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court cancelled fraudulent land transfers made in defiance of a court judgment, restoring ownership to the original winning buyer.

What this practically means

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Executive summary

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This ruling by Okong'o J of the Environment and Land Court at Nairobi, delivered on 3rd November, 2017, determined the plaintiff's Notice of Motion dated 29th August, 2014 arising out of a 2001 judgment in his favour for specific performance of a 1988 agreement for sale of part of L.R No. 10029/33 Kitengela Farm. The plaintiff's transfer had been executed by the court in 2002 but was never registered. After the deceased died in 2006, the defendants as administrators obtained a consent order on 16th April, 2013 lifting the preservation order of 27th December, 1996, then registered the property in their and other beneficiaries' names and sold it to the interested party, Bwemwa Realtors Limited, for Kshs. 25,000,000/-. The court framed three issues. On forgery of the consent letter, the court held the plaintiff failed to discharge the burden of proof absent expert handwriting evidence. However, it found that the plaintiff's former advocates acted against his interest, and concluded there was collusion between the defendants' advocates and Okach & Company, rendering the consent order tainted with collusion and against public policy. The court held the decreed property did not form part of the deceased's estate, that the defendants acquired no valid title, and that the sale was defeated by the doctrine of lis pendens and the principle that one cannot benefit from one's own wrong. The judgment's 12-year lifespan had not expired. The court vacated order No. 2 of the 16th April, 2013 order and granted prayers 7 and 8 of the application, with costs to the plaintiff against the defendants only.

Key legal issues

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01

Whether the consent order of 16th April, 2013 should be set aside

Holding

Yes - the consent was set aside on the ground of collusion between the defendants' advocates and the plaintiff's former advocates, acting against the plaintiff's interest and contrary to public policy.

Reasoning

The court found conflicting affidavit evidence on forgery and held the plaintiff bore the burden of proving it, which he failed to discharge absent expert evidence. However, an advocate's ostensible authority cannot be exercised against the client's interest. Okach & Company signed the consent lifting the preservation order before the court-executed transfer was registered, conferring benefit on the defendants. Collusion was established on the circumstances, rendering the consent order void.

p. 7
02

Whether the registrations of the suit property in favour of the defendants/beneficiaries and its transfer to the interested party were unlawful

Holding

Yes - the property did not form part of the deceased's estate; the defendants acquired no valid title and passed none to the interested party, whose purchase is defeated by lis pendens.

Reasoning

At the deceased's death a decree existed and a transfer had been court-executed awaiting registration, so the property was not available for distribution. The defendants registered themselves and transferred the property in defiance of the judgment before the 12-year life of the judgment expired. Purchasers pendente lite are bound by the decree, and the defendants cannot profit from their own wrong; the interested party's remedy lies against the defendants.

p. 8
03

Whether the plaintiff is entitled to the prayers sought

Holding

Partially - the court vacated order No. 2 of the 16th April, 2013 order and granted prayers 7 and 8 (annulment of resultant titles and registration of the plaintiff), but limited prayer 6 to order No. 2 only.

Reasoning

Having found the consent order tainted by collusion and the subsequent titles invalid, the court granted relief sufficient to restore the position under the 2001 judgment and decree. The forgery ground failed, and relief was confined to vacating the lifting of the 1996 preservation order, cancelling the resultant entries, and registering the plaintiff as proprietor, with costs against the defendants only.

p. 9

Legal principles established

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  • A consent judgment or order has contractual effect and can only be set aside on grounds which would justify setting aside a contract.
  • An advocate's ostensible authority cannot be used to consent to orders completely negating the client's interests; such a consent order may be treated as tainted by fraud or collusion and will not be upheld.
  • Property decreed to a party before the deceased's death does not form part of the deceased's estate for distribution to beneficiaries.
  • An act done in wilful disobedience of a court order is illegal and invalid and cannot effect any change in the rights and liabilities of others; the author of a wrong shall not take advantage of his own wrong.
  • The life of a judgment is 12 years from delivery, and part-execution of a decree (court-executed transfer awaiting registration) means the remaining steps are a mere formality.
  • The doctrine of lis pendens defeats alienations of property in litigation, overriding section 23 of the Registration of Titles Act.

Court orders

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  1. 1.Prayer 6 of the application granted limited only to order No. 2 in the court order made on 16th April, 2013 and issued on 23rd April, 2013 (vacating of the consent order lifting the preservation order of 27th December, 1996)
  2. 2.Prayers 7 and 8 of the application granted (annulment/cancellation of the resultant titles and rectification/restoration of the register, including registration of the plaintiff as proprietor)
  3. 3.Costs of the application awarded to the plaintiff as against the defendants only

Authorities

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Legislation

  • Transfer of Property Act (TPA)section 52 (lis pendens)
  • Registration of Titles Act (RTA)section 23

Cases cited (10)

  • Wasike –vs- Wamboko
    (1988) KLR 429
  • Brook Bond Liebig (T) Ltd –vs- Mallya
    [1975] E.A 266
  • Hirani –vs- Kassam
    [1952] 19 E.A.C.A 131
  • Republic –vs- District Land Registrar Nandi & Another ex parte Tegerei & Another
    [2005] 1 KLR 521
  • National Bank of Kenya Ltd. vs. Anaj Warehousing Limited
    Supreme Court Petition No. 36 of 2014
  • Clarke and Others vs. Chadburn & others
    [1985] 1 All ER (PC) 211
  • Nabro Properties Ltd. vs. Sky Structures Limited and 2 others
    [2002] 2 KLR 299
  • Margaret Wairimu Warima vs. Phylis Wanjiru Thairu & 2 others
    NRB Civil Appeal No. 127 of 2014 (2017) eKLR
  • Bellamy vs. Sabine
    [1857] 1 De J 566
  • Mawji vs. US International University & Another
    [1976] KLR 185
Jurisdiction invoked
Original and supervisory jurisdiction over its own suit and process, including setting aside consent orders and rectification of the register in a pending suit (Civil Procedure Act/ Rules regime governing execution, setting aside consent orders and lis pendens)

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, "Njenga Kubutha v Jane Ngina Kukan & 2 others [2017] KEELC 1001 (KLR)", Case Analysis (2017). Notice of Motion dated 29th August, 2014 (suit arising from HCCC filed 17th January, 1990). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/1001/eng@2017-11-03

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