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ELCPartially AllowedNot stated in the judgment (Notice of Motion dated 17th October 2017, filed 8th November 2017)· [2018] KEELC 448 (KLR)

Maikuma Wekesa Buchunju v Donald Wekesa Muyundo & 7 others [2018] KEELC 448 (KLR)

Environment and Land Court
15 November 2018
2,485 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court blocked further dealings with family land after a bank's 1980 auction was found illegal because it skipped required statutory notices.

What this practically means

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Executive summary

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This Environment and Land Court ruling at Bungoma, delivered by Boaz N. Olao J on 15th November 2018, determined the plaintiff's Notice of Motion dated 17th October 2017 seeking a temporary injunction restraining the defendants from trespassing on, dealing with or disposing of land parcel No. NDIVISI/NDIVISI/177 pending trial. The plaintiff, administrator of the estate of Buchunju Kipchanga (registered proprietor since 1963, deceased 2005), alleged that the land was fraudulently transferred through a chain involving the 6th defendant's 1980 exercise of statutory power of sale, subsequent transfer to the 3rd defendant, an auction sale in 2015 to the 1st defendant, and a charge to the 2nd defendant. The 2nd, 4th, 5th and 6th defendants opposed, asserting proper exercise of statutory powers of sale and the plaintiff's lack of proprietary interest. Applying the Giella v Cassman Brown principles as elaborated in Mrao and Nguruman, the court found a prima facie case because the 6th defendant produced no statutory notices of default or sale as required by Section 74(1) of the repealed Registered Land Act, rendering its 1980 transfer and all subsequent transfers potentially illegal. The deceased is buried on the land and the family remains in possession, so damages would be inadequate. The balance of convenience also favoured the applicant. The motion was allowed: an injunction was issued against all defendants pending hearing and determination of the suit, with the injunction to lapse if the suit is not heard within 12 months, and costs were made costs in the cause.

Key legal issues

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01

Prima facie case for temporary injunction

Holding

A prima facie case was established because the chargee failed to produce evidence of statutory notices of default and sale, so the transfer to it and all subsequent transfers were potentially illegal; the Applicant's right has been or is threatened with violation

Reasoning

The court applied Giella and Nguruman. The Green Card confirmed the deceased's 1963 registration; the 6th defendant deponed that he defaulted and its statutory power of sale was exercised in 1980, but produced no statutory notices. Non-compliance with s.74(1) of the repealed Registered Land Act rendered the transfer illegal, giving the Applicant a right apparently infringed warranting explanation or rebuttal.

p. 3
02

Irreparable injury

Holding

Damages would not adequately compensate because the transfer was not above board and the deceased is buried on the suit land where the family has lived since 1963

Reasoning

The court found the initial transfer was in violation of the law, and relying on Mohammed v Commissioner of Lands held that where illegality is shown the defendant cannot claim damages are adequate. The family's possession, the burial of the deceased on the land, and the threat of eviction by the 1st defendant and buyers established injury beyond monetary compensation.

p. 3
03

Balance of convenience

Holding

Even if the court were in doubt, the balance of convenience favours granting the injunction as it carries the lower risk of injustice

Reasoning

Applying the third Giella limb and Films Rover International, the court held that preserving the applicant's possession of the suit land pending trial is the course with the lower risk of injustice should the court turn out to have been wrong.

p. 3

Legal principles established

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  • Where a chargee exercises its statutory power of sale, failure to prove compliance with the statutory notice requirements renders the sale and all subsequent transfers illegal
  • Although a chargee may bid at and purchase the charged land under Section 77(1) of the repealed Registered Land Act, it must still comply with Section 74(1) statutory notice requirements before sale

Court orders

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  1. 1.The defendants, their servants, trustees, agents and any persons claiming through them are restrained from trespassing, entering, offering for sale, transferring, charging and/or in any other way interfering or dealing with land parcel No. NDIVISI/NDIVISI/177 pending the hearing and determination of the suit
  2. 2.The parties to comply with pre-trial directions so that the suit is heard and determined within 12 months, failing which the order of injunction shall lapse
  3. 3.Costs shall be in the cause

Authorities

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Legislation

  • Civil Procedure RulesOrder 40 Rule 1
  • Civil Procedure RulesOrder 40 Rule 4
  • Civil Procedure RulesOrder 51 Rule 1
  • Civil Procedure ActSection 1A
  • Civil Procedure ActSection 1B
  • Civil Procedure ActSection 3
  • Civil Procedure ActSection 3A
  • Civil Procedure ActSection 63(e)
  • Registered Land Act (repealed)Section 74(1)
  • Registered Land Act (repealed)Section 77(1)

Cases cited (6)

  • GIELLA V. CASSMAN BROWN & CO. LTD
    1973 E.A. 358
  • MRAO V. FIRST AMERICAN BANK OF KENYA LTD & TWO OTHERS
    C.A. Civil Appeal No.39 of 2002 (2003 eKLR)
  • NGURUMAN LTD V JAN BONDE NIELSEN
    2014 eKLR
  • FILMS ROVER INTERNATIONAL LTD V CANNON FILM SALES LTD
    1986 3 ALL ER 772
  • GEORGE ORAGO V GEORGE JAGALO & OTHERS
    C.A. Civil Appeal No.62 of 2009 (2010 KLR)
  • MOHAMMED V COMMISSIONER OF LANDS & OTHERS
    KLR (E&L) 1
Jurisdiction invoked
Order 40 Rules 1 and 4, Order 51 Rule 1 of the Civil Procedure Rules; Sections 1A, 1B, 3, 3A and 63(e) of the Civil Procedure 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, "Maikuma Wekesa Buchunju v Donald Wekesa Muyundo & 7 others [2018] KEELC 448 (KLR)", Case Analysis (2018). Not stated in the judgment (Notice of Motion dated 17th October 2017, filed 8th November 2017). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/448/eng@2018-11-15

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