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ELCPartially AllowedApplication dated 4th September 2015 (suit re land parcel Kwale/Diani Beach Block/151)· [2017] KEELC 3378 (KLR)

Dignified Holings Ltd v Attorney General& 12 others [2017] KEELC 3378 (KLR)

Environment and Land Court of Kenya
24 March 2017
1,971 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The court froze all dealings on a disputed Diani Beach plot because two parties hold valid-looking titles to the same land, pending full trial.

What this practically means

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Executive summary

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The applicant, described as the registered owner of Kwale/Diani Beach Block/60, moved the court under Orders 40 & 51 of the Civil Procedure Rules, the Environment and Land Court Act and section 68 of the Land Registration Act seeking an injunction and an inhibition against dealings with Kwale/Diani Beach Block/151 pending trial, fearing that with the close of criminal proceedings the green card would be returned to the registry enabling dealings over conflicting titles. The 2nd, 4th, 5th and 6th defendants and the 11th defendant opposed, arguing abuse of process, adequacy of damages and want of a company resolution; the 3rd defendant relied on a pending Petition No 37 of 2011 in which a 2012 conservatory order had issued. The court framed two issues: whether the application challenged the 2012 ruling, and whether the applicant met the threshold for the orders. It held the first issue in the negative because the Petition's judgment of 13th May 2016 dispensed with those orders and left parties free to litigate ownership in a civil suit, there being a multiplicity of four titles to the same land. Finding a prima facie case on the undisputed fact that Block 151 occupies the geographical position of Block 60, and that one of the two titles must ultimately be cancelled, the court granted prayer 5 - an inhibition on Block 151 whose consequence restrains selling, transferring or charging the property pending determination of the suit. It declined to strike out the pleadings for want of a company resolution, applying D.T. Dobie v Muchina, and ordered each party to bear their own costs of the application.

Key legal issues

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01

Whether the application was an abuse of process given the ruling of July 2012 in Petition No 37 of 2011

Holding

No; the judgment in the Petition delivered 13th May 2016 dispensed with the earlier conservatory orders and left parties free to file a civil suit

Reasoning

The court noted the Petition's judgment set the parties at liberty to commence civil process to determine ownership, since Mureithi J could not determine ownership in a petition. The objection based on the pending Petition was therefore overtaken by events and had no basis.

p. 3
02

Whether the applicant established a prima facie case with a arguable basis for preservation orders

Holding

Yes, to the extent justifying an inhibition; the question of competing alienations is reserved for trial

Reasoning

It was undisputed Block 60 was resurveyed into 151 and 152, so 151 occupies the same geographical position as Block 60. Whether the plot, having been alienated to the applicant, was available for allocation to the defendants can only be determined by evidence at full trial. Both parties hold title deeds, one of which must be cancelled, warranting restriction of dealings.

p. 4
03

Whether the suit should be struck out for lack of a company resolution

Holding

No; the defect is curable by amendment

Reasoning

Relying on D.T. Dobie v Muchina, the court held striking out is drastic and reserved for cases where defects cannot be cured by amendment. The absence of a board resolution was such a curable defect.

p. 4

Legal principles established

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  • Where parties hold competing titles over the same land, the court may inhibit dealings on the title pending trial to preserve the subject matter
  • A suit should only be struck out where the defect cannot be cured by amendment
  • In cases of multiplicity of titles, the party asserting ownership must prove the other titles are fake or fraudulent

Court orders

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  1. 1.An inhibition registered against title Kwale/Diani Beach Block/151 restraining registration of any dealings pending hearing and determination of the suit
  2. 2.The defendants restrained from selling, transferring or charging the suit property pending determination of the case
  3. 3.Each party to bear their respective costs of the application

Authorities

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Legislation

  • Civil Procedure RulesOrders 40 & 51
  • Environment and Land Court Act 2011sections 13(7), 18(c), 19(2)
  • Land Registration Actsections 68, 76
  • Evidence Actsections 107 & 108
  • Constitution of Kenya 2010Article 40

Cases cited (2)

  • Giella vs Cassman Brown
  • D. T Dobie vs Muchina (1982) KLR
    (1982) KLR
Jurisdiction invoked
Sections 13(7), 18(c) and 19(2) of the Environment and Land Court Act 2011; Order 40 & 51 of the Civil Procedure Rules; section 68 of the Land Registration Act

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, "Dignified Holings Ltd v Attorney General& 12 others [2017] KEELC 3378 (KLR)", Case Analysis (2017). Application dated 4th September 2015 (suit re land parcel Kwale/Diani Beach Block/151). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/3378/eng@2017-03-24

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