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ELCDismissedNotice of Motion dated 4th March, 2016 (Kajiado ELC suit)· [2018] KEELC 1380 (KLR)

Walter Otiso Osoro v Mwaura Karuga & 3 others [2018] KEELC 1380 (KLR)

Environment and Land Court
8 October 2018
1,556 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 refused to stop a land transfer because the buyer held only unregistered documents while the other party held registered title backed by a court decree.

What this practically means

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Executive summary

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This was a ruling on the Plaintiff's Notice of Motion dated 4th March 2016 seeking a temporary injunction restraining the 1st and 2nd Defendants from interfering with land parcel Kajiado/Kaputiei North/11275 pending trial. The Plaintiff, Walter Otiso Osoro, deponed that he purchased the suit land from Embakasi Ranching Company Limited (the 2nd Defendant) in 2005, paid Kshs. 210,000, received the original title deed and all completion documents, and lodged the transfer for registration in November 2009, but the 3rd Defendant (the Land Registrar) withheld registration. He later discovered that a transfer had been registered in favour of the 1st Defendant on 28th April 2015 pursuant to a decree in Machakos ELC No. 260 of 2010, and alleged the decree was obtained fraudulently. The Defendants filed no replying affidavits; the 1st Defendant filed submissions contending he purchased the land, was awarded it in the Machakos suit, was the registered proprietor protected by section 26 of the Land Registration Act, and that the Plaintiff's contractual claim was statute-barred. Applying the Giella v Casman Brown principles, the court (Christine Ochieng J) found that although the 2nd Defendant breached the contract with the Plaintiff, the 1st Defendant's registration under an unappealed court decree vested absolute ownership in him under section 24(a) of the Land Registration Act; hence no prima facie case was established. Any loss was compensable in damages, and the balance of convenience favoured the registered 1st Defendant. The application was dismissed with costs on 8th October 2018.

Key legal issues

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01

Whether the Plaintiff established a prima facie case with a probability of success

Holding

No. The 1st Defendant is the registered proprietor by virtue of a Court Decree in Machakos ELC No. 260 of 2010 which was never appealed from, and his title is protected by section 24(a) of the Land Registration Act.

Reasoning

Although the court found that the 2nd Defendant breached its contract with the Plaintiff, who holds completion documents, the 1st Defendant's registration following an unappealed decree vests absolute ownership in him under section 24(a) of the Land Registration Act. A certificate of title or lease is conclusive evidence of proprietorship, following Munyao J in Christopher Kitur Kipwambok v Vipulratilal Dodhia. The Plaintiff therefore failed to demonstrate an apparently infringed right.

p. 2
02

Whether the Plaintiff would suffer irreparable loss not compensable by damages

Holding

No; the Plaintiff can be compensated by damages, having a breach-of-contract claim against the 2nd Defendant which the 1st Defendant contended was statute-barred.

Reasoning

The Plaintiff is not the registered owner; his claim is essentially contractual against the 2nd Defendant. Since the land has passed to the 1st Defendant by court order, any injury is compensable in damages, applying Nguruman Ltd v Jan Bonde Nielsen. The 1st Defendant also raised the contention that the contract claim is extinguished by limitation under the Limitation of Actions Act.

p. 2
03

Where the balance of convenience lies

Holding

It tilts in favour of the 1st Defendant as the registered proprietor.

Reasoning

Given that the 1st Defendant is registered as proprietor and the Plaintiff holds only unregistered completion documents, the court found the balance of convenience favours maintaining the status reflected in the register rather than restraining the registered proprietor.

p. 2

Legal principles established

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  • A prima facie case is one which, on the material presented, shows an apparently infringed right calling for an explanation or rebuttal from the opposite party.
  • Registration of a person as proprietor of land vests absolute ownership in that person.
  • A temporary injunction requires the applicant to demonstrate irreparable injury not adequately compensable by damages, and the burden of demonstrating the nature and extent of the injury is on the applicant.

Court orders

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  1. 1.The application dated the 4th March, 2016 is dismissed with costs

Authorities

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Legislation

  • Civil Procedure RulesOrder 51 rule 1; Order 40 rules 1, 2, 3 and 4(1) & (2)
  • Environment and Land Court ActSection 13(7)
  • Civil Procedure ActSections 1, 1A, 3 and 3A
  • Land Registration ActSections 24(a) and 26
  • Law of the Limitation Act (Limitation of Actions Act)

Cases cited (4)

  • Giella Vs Casman Brown
    (1973) E.A 358
  • MRAO VS FIRST AMERICAN BANK OF KENYA LTD & TWO OTHERS
    C.A CIVIL APPEAL No. 39 of 2002 (2003) K.L.R 125
  • Christopher Kitur Kipwambok-vs- Vipulratilal Dodhia & 3 ORS
    ELC NO. 65/2013 (Eldoret)
  • Nguruman Ltd. Vs. Jan Bonde Nielsen
    CA No. 77 of 2012
Jurisdiction invoked
Section 13(7) of the Environment and Land Court Act and Order 40 rules 1, 2, 3 and 4(1) & (2), Order 51 rule 1 of the Civil Procedure Rules; Sections 1, 1A, 3 and 3A 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, "Walter Otiso Osoro v Mwaura Karuga & 3 others [2018] KEELC 1380 (KLR)", Case Analysis (2018). Notice of Motion dated 4th March, 2016 (Kajiado ELC suit). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/1380/eng@2018-10-08

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