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ELCPartially AllowedNot stated in judgment (Plaint filed 1/8/17)· [2018] KEELC 2416 (KLR)

Thuo Ng’ang’a v Faith Wanjiru Thuo & another [2018] KEELC 2416 (KLR)

Environment and Land Court
12 July 2018
4,185 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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A Kenyan court cancelled titles to family land because a wife used an invalid power of attorney to sell jointly owned property without her husband's consent.

What this practically means

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Executive summary

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The Plaintiff sued the 1st Defendant (his legal wife) and the 2nd Defendant (a subsequent purchaser) seeking a permanent injunction and a declaration revoking their titles over LR Loc.3/Gituru/875, which had been jointly registered in the names of the Plaintiff and the 1st Defendant. The Plaintiff alleged that the 1st Defendant fraudulently procured the removal of a restriction registered on the title, had the land transferred to herself and then sold it to the 2nd Defendant for Kshs 2.6 million without his consent or spousal consent. The court framed two substantive issues: fraud in the transfer to the 1st Defendant, and whether the 2nd Defendant was a bona fide purchaser for value without notice. The court found the Power of Attorney general, undated and unregistered; the transfer undated, unregistered and inconsistent with the defence of a gift; the Land Control Board consent uncorroborated and inconsistent with the receipt; and the restriction removed under the wrong statutory provision (section 73(3) instead of section 78) without notice to the Plaintiff. It concluded the transfer to the 1st Defendant was null and void. The 2nd Defendant could not be a bona fide purchaser since nothing passed to him, the restriction and joint registration subsisted at the sale, and the documents were tainted by the same illegalities. The court cancelled the Defendants' titles, reverted the land to the joint names of the Plaintiff and 1st Defendant, restrained the 2nd Defendant from interfering, and awarded the Plaintiff costs against the Defendants.

Key legal issues

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01

Whether the transfer of the suit land to the 1st Defendant was fraudulent and/or illegal

Holding

The transfer was null and void, being wrought with fraud and illegality

Reasoning

The Power of Attorney was undated, unregistered and general, authorising no self-dealing. The transfer was undated, unregistered and inconsistent with the claim of a gift. The Land Control Board consent was uncorroborated and inconsistent with the receipt's date. The restriction was removed under the wrong statutory provision without notice to the Plaintiff, and all dealings occurred on a single day. No spousal consent was obtained.

p. 4
02

Whether the 2nd Defendant was a bonafide purchaser for value without notice

Holding

He was not; he received nothing from a void title and had notice of the register entries

Reasoning

Having found the transfer to the 1st Defendant null and void, nothing passed to the 2nd Defendant. At the time of the sale agreement the land remained jointly registered and the restriction subsisted. Under section 26/29 of the Land Registration Act a purchaser is deemed to have notice of all register entries; due diligence would have revealed the 1st Defendant had no independent interest. The documents were tainted with the same illegalities and were null and void.

p. 5

Legal principles established

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  • A general power of attorney does not authorise an attorney to transfer land to herself and does not donate rights to dispose of a co-owner's interest; an unregistered power of attorney is invalid
  • A restriction must be removed under section 78 of the Land Registration Act, not section 73(3) which deals with cautions; removal under the wrong provision is an unlawful process
  • A purchaser is deemed to have notice of every subsisting entry in the register at the time of acquisition
  • A disposition of jointly owned matrimonial land without spousal consent is invalid

Court orders

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  1. 1.The titles in respect to Land Reference Number Loc.3/Gituru/875 registered in the names of the 1st Defendant and/or the 2nd Defendant be and are hereby cancelled.
  2. 2.The title in respect to Land Reference Number Loc.3/Gituru/875 do and hereby reverts to the names of the Plaintiff and the 1st Defendant as per entry No.3 in the title register.
  3. 3.A permanent injunction restraining the 2nd Defendant, his servants and/or agents from selling, leasing, charging, disposing, entering into, utilizing or interfering in any way with the Plaintiff and 1st Defendant use and enjoyment of land known Land Reference Number Loc.3/Gituru/875.
  4. 4.The Defendants shall pay the cost of this suit.

Authorities

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Legislation

  • Land Registration Actsection 73(3)
  • Land Registration Actsection 78(1) & (2)
  • Land Registration Act, 2012section 29 (notice of entries in register)

Cases cited (1)

  • Arthi Highway Developers Limited v West End Butchery Limited & 6 others
    [2015] eKLR
Jurisdiction invoked
Original civil suit under the Land Registration Act, 2012

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, "Thuo Ng’ang’a v Faith Wanjiru Thuo & another [2018] KEELC 2416 (KLR)", Case Analysis (2018). Not stated in judgment (Plaint filed 1/8/17). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/2416/eng@2018-07-12

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