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ELCDismissedPetition (filed 22nd September 2016), Nakuru· [2018] KEELC 1543 (KLR)

Rift Valley Enterprises Limited v District Land Registrar & 4 others [2018] KEELC 1543 (KLR)

Environment and Land Court
28 September 2018
3,285 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Environment and Land Court in Nakuru dismissed a land dispute petition, ruling that fraud claims must go through statutory land and company law procedures, not the Constitution.

What this practically means

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Executive summary

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Rift Valley Enterprises Limited, a land buying company, petitioned the Environment and Land Court at Nakuru seeking declarations that the 2nd respondent was never a shareholder, that the subdivision of plot Miti Mingi/Mbaruk Block 3/4123 into plots 5056 and 5057 and their registration in the 2nd respondent's name was fraudulent and illegal, revocation of the resulting titles, restoration of the original parcel, compensation and damages for violation of its property rights under Articles 40 and 60. The petitioner alleged its 2nd respondent's registration pre-empted pending appeals from a Land Disputes Tribunal decision. The 1st respondent did not participate; the 2nd respondent contended the petition was an abuse of process seeking only private law remedies and was time-barred under section 7 of the Limitation of Actions Act; the Interested Parties supported the petition. The court framed three issues: availability of alternative avenues, entitlement to relief, and costs. Applying the constitutional avoidance principle and the Karume line of authority, Judge D. O. Ohungo held that the allegations of fraud in the registration of land require remedies under the Land Registration Act, 2012, and the allegations concerning the petitioner's internal affairs require proceedings under the Companies Act with oral evidence, neither of which can be accommodated in a constitutional petition. Declining to exercise constitutional jurisdiction, the court dismissed the petition with costs to the 2nd respondent, denying costs to the 1st respondent and the Interested Parties.

Key legal issues

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01

Whether the dispute is properly before the court as a constitutional petition

Holding

The court declined to exercise constitutional jurisdiction because adequate statutory remedies exist; allegations of fraud in land registration should be pursued under the Land Registration Act, 2012 and internal company affairs under the Companies Act

Reasoning

The petitioner's own allegations of fake share certificates, irregular directorship and fraudulent registration require oral evidence and inquiry under the Companies Act and the Land Registration Act, 2012. Since plot 4123 and the resultant parcels were registered in the 2nd respondent's name, the petitioner must first cancel that registration through statutory means. The petitioner did not show those avenues were inexistent or inadequate, so the constitutional petition was not the proper forum.

p. 4
02

Whether the petitioner is entitled to the relief sought

Holding

No; the remedies cannot be granted in the petition given the court's finding on alternative avenues

Reasoning

Following the principle that where a clear procedure for redress is prescribed by the Constitution or an Act of Parliament it should be strictly followed (Speaker of the National Assembly v Karume), the court held that the proceedings must end at that narrow point without considering the merits of the relief sought.

p. 4
03

Who bears the costs

Holding

Costs awarded to the 2nd respondent; the 1st respondent and Interested Parties denied costs

Reasoning

The 2nd respondent successfully defended the petition and ought not to bear her own costs; the 1st respondent did not participate and the Interested Parties supported the petition, so neither is entitled to costs. Costs are discretionary but must be exercised judiciously.

p. 5

Legal principles established

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  • Where ample statutory avenues for resolution of a dispute are available, the constitutional court will defer to the statutory options and decline to entertain the dispute (constitutional avoidance)
  • A limited liability company has the right under Article 22, read with Article 260, to petition for enforcement of Bill of Rights violations
  • A litigant asserting a constitutional claim must properly plead and prove the case, discharging the burden of proof

Court orders

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  1. 1.The petition is dismissed with costs to the 2nd respondent
  2. 2.The 1st respondent and the Interested Parties are not entitled to any costs

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 22, 40, 40(6), 48, 60, 260
  • Companies Actnot specified
  • Registered Land Actnot specified (repealed)
  • Land Registration Act, 2012not specified
  • Limitation of Actions Actsection 7
  • Evidence Act, Cap 80section 107

Cases cited (12)

  • Anarita Karimi Njeru v The Republic
    (1976-1980) KLR 1272
  • Vekariya Investments Limited v Kenya Airports Authority & 2 Others
    [2014] eKLR
  • Arnacherry Limited v Attorney General
    [2014] eKLR
  • Republic v The Chief Land Registrar, Muranga & Another ex Parte Paul Ndirangu Mwangi & Anor
    [2010] eKLR
  • Hon. Uhuru Muigai Kenyatta v The Nairobi Star Publications Limited
    [2013] eKLR
  • Henry Muthee Kathurima vs Commissioner of Lands & Another
    [2015] eKLR
  • Raila Amolo Odinga & Another v Independent Electoral and Boundaries Commission & 4 Others & Attorney General & Another
    Presidential Petition No. 1 of 2017
  • Gabriel Mutava & 2 others v Managing Director Kenya Ports Authority & another
    [2016] eKLR
  • Speaker of the National Assembly v James Njenga Karume
    [1992] eKLR
  • Rose Wangui Mambo & 2 others v Limuru Country Club & 17 others
    [2014] eKLR
  • Isaac Ngugi v Nairobi Hospital & 3 Others
  • Maurice Adongo Anyango v Kenyatta International Convention Centre
    [2018] eKLR
Jurisdiction invoked
Article 22 of the Constitution (enforcement of Bill of Rights); Articles 40, 48 and 60 invoked

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, "Rift Valley Enterprises Limited v District Land Registrar & 4 others [2018] KEELC 1543 (KLR)", Case Analysis (2018). Petition (filed 22nd September 2016), Nakuru. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/1543/eng@2018-09-28

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