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ELCPartially AllowedELC Case No. 252 of 2008· [2017] KEELC 2495 (KLR)

Wilfred Josa & another v George Patrick & another [2017] KEELC 2495 (KLR)

Environment and Land Court
27 June 2017
3,040 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 plaintiffs, a couple, sued the 1st defendant (from whom they bought plot 1956/726 Voi Municipality in November 1999 for Kshs 200,000, paying a Kshs 180,000 deposit and receiving the original title deed), the 2nd defendant (to whom the 1st defendant later sold and transferred the same plot, registered on 7th February 2006), and the Commissioner of Lands. They sought injunctions, a declaration that the transfer to the 2nd defendant was fraudulent, revocation of the title, specific performance, and general damages for trespass and breach of contract. The 2nd defendant denied the claim and counter-claimed for a declaration of ownership, mesne rents of Kshs 54,000 per month and a permanent injunction, claiming to be a bona fide purchaser for value without notice; he built nine residential units on the plot. The court held that fraud must be strictly proved to a standard higher than the ordinary civil standard, and that the plaintiffs failed to prove fraud by the 2nd and 3rd defendants: the replacement documents were all in the 1st defendant's name, the 2nd defendant was acquitted of the criminal charge of giving false information, and the plaintiffs neither took possession nor registered a caution. Holding the title deed without an executed transfer did not pass title to the plaintiffs. The suit against the 2nd and 3rd defendants was dismissed; the 1st defendant was ordered to refund Kshs 180,000 with interest from 24th November 1999 plus costs, and judgment was entered for the 2nd defendant on his counter-claim as prayed.

Key legal issues

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01

Fraud against the 2nd and 3rd defendants

Holding

Not proved; the 2nd defendant is a bona fide purchaser for value without notice

Reasoning

The plaintiffs proved the 1st defendant misrepresented that the title was lost, but produced no evidence that the 2nd or 3rd defendants knew of the earlier sale. The documents replacing the 'lost' title were all in the 1st defendant's name, the 2nd defendant was acquitted of giving false information, and the plaintiffs had neither taken possession nor lodged a caution or restriction on the register to alert third parties.

p. 4
02

Whether title passed to the plaintiffs

Holding

No; the plaintiffs' claim lies only in breach of contract against the 1st defendant

Reasoning

Although the plaintiffs paid a deposit of Kshs 180,000 and held the original title deed, no transfer was executed or registered, the balance was contingent on payment of rates and rents with no timelines set, and the plaintiffs never took possession. Possession of a title deed alone does not convey title.

p. 5
03

The 2nd defendant's counter-claim

Holding

Allowed in full; he proved bona fide purchase and was entitled to mesne profits and an injunction

Reasoning

The 2nd defendant paid the full consideration, obtained registration on 7th February 2006, took possession and built nine residential units. No contrary evidence was presented to displace the valuation of Kshs 54,000 per month, and his enjoyment of the rent was curtailed by the plaintiffs' injunction.

p. 5

Legal principles established

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  • Title of a registered owner under section 26 of the Land Registration Act can only be cancelled if it is proved that the registered owner was party to the fraud used to acquire the title
  • Fraud must be strictly pleaded and proved to a standard higher than the ordinary civil standard
  • Holding a title deed without executed transfer documents does not pass title or interest in land

Court orders

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  1. 1.Dismissal of the plaintiffs' suit as against the 2nd and 3rd defendants
  2. 2.The 1st defendant to refund the plaintiffs Kshs 180,000 with interest at court rates from 24th November 1999 until payment in full
  3. 3.Plaintiffs awarded costs of the suit (as against the 1st defendant)
  4. 4.Judgment entered in favour of the 2nd defendant against the plaintiffs as contained in prayers (a)–(e) of the counter-claim, namely declaration of lawful ownership, mesne rents of Kshs 54,000 per month from 22.9.06 until determination of the suit, permanent injunction restraining the plaintiffs from interfering with the suit land, interest, and costs

Authorities

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Legislation

  • Land Registration Actsection 26
  • Evidence Act (Cap 80)sections 107-109

Cases cited (2)

  • Koinange & 13 others vs Koinange
    (1968) KLR 23
  • R. G Patel vs Lalji Makanji
    (1957) EA 314
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court under the Environment and Land Court Act over disputes relating to title to land

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, "Wilfred Josa & another v George Patrick & another [2017] KEELC 2495 (KLR)", Case Analysis (2017). ELC Case No. 252 of 2008. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/2495/eng@2017-06-29

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