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ELCDismissedEldoret ELC suit (application dated 4.4.2014)· [2018] KEELC 2470 (KLR)

Kenya Anti-Corruption Commission v Magut Agencies Limited & 3 others [2018] KEELC 2470 (KLR)

Environment and Land Court
29 June 2018
1,037 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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An Eldoret court ruled a government gazette notice revoking a land title cannot settle a lawsuit, because no agreement was reached between the parties.

What this practically means

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Executive summary

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The plaintiff (applicant) moved the court by a notice of motion dated 4 April 2014 under Order 25, Rules 5(1)(2) and Order 51, Rule 1 of the Civil Procedure Rules, 2010, seeking a declaration that the suit had been compromised or overtaken by events following the revocation of title Eldoret Municipality Block 8/574 (excised from Block 8/83) by Gazette Notice No. 15578 of 26 November 2010, and judgment in terms of the plaint. The underlying suit sought declarations that the allocation and issuance of lease over the land was fraudulent and null and void, rectification of the register, preservation and permanent injunction, and costs. The defendants had earlier challenged the revocation in Eldoret JR No. 44 of 2010, which was dismissed and not appealed. The interested party, Kensten Limited, contended the Registrar lacked capacity to revoke title by Gazette Notice, while the defendants argued the notice was ultra vires and violated Articles 40, 47, 48 and 50 of the Constitution. The court held that for judgment under Order 25, Rule 5(1) there must be a lawful agreement or compromise, or satisfaction by the defendant of the plaintiff's claim. The Gazette Notice was unilateral and could not be an agreement or compromise; further, the Minister for Lands had no power to revoke title, so the revocation was in excess of jurisdiction and an illegality. There was also no evidence of satisfaction or surrender of the property to the National Land Commission. The application was found misconceived and dismissed with costs on 29 June 2018.

Key legal issues

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01

Whether the suit was compromised within the meaning of Order 25, Rule 5(1) of the Civil Procedure Rules

Holding

No - a compromise requires mutual concessions; the Gazette Notice revoking the title was unilateral and cannot amount to an agreement or compromise

Reasoning

The court adopted the dictionary meaning of agreement and compromise, requiring mutual assent and reciprocal modification of demands. The Gazette Notice No. 15578 of 26.11.2010 was issued unilaterally by the Minister for Lands without involving the defendants, so it satisfies neither element. Further, the revocation was in excess of jurisdiction, and there was no evidence the defendants satisfied the plaintiff or surrendered the property to the National Land Commission.

p. 2
02

Whether the Minister for Lands had power to revoke a title by Gazette Notice

Holding

No - the Minister acted in excess of jurisdiction and the revocation was an illegality

Reasoning

The court found the Minister for Lands had no powers to revoke title, so the act of revoking title Eldoret Municipality Block 8/574 by Gazette Notice was done in excess of jurisdiction and constituted an illegality. This finding underpinned the conclusion that no lawful agreement or compromise existed and that Order 25, Rule 5(1) and (2) were inapplicable, despite the interested party's contrary position that the notice was valid.

p. 2
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Whether the defendants had satisfied the plaintiff in respect of the subject-matter of the suit

Holding

No - there was no evidence of satisfaction or surrender of the property

Reasoning

Order 25, Rule 5(1) also applies where the defendant satisfies the plaintiff in respect of the whole or part of the subject-matter. The court found no evidence of such satisfaction: the defendants had not surrendered the disputed property to the National Land Commission. Accordingly the application was misconceived, without basis, and was dismissed with costs.

p. 2

Legal principles established

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  • To enter judgment under Order 25, Rule 5(1), there must be a lawful agreement or compromise between the parties, or satisfaction by the defendant of the plaintiff in respect of the subject-matter of the suit
  • A unilateral administrative act, such as a gazette notice revoking a title, cannot constitute an agreement or compromise for purposes of Order 25

Court orders

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  1. 1.The application dated 4.4.2014 is dismissed
  2. 2.Costs of the application awarded to the defendants

Authorities

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Legislation

  • Civil Procedure Rules, 2010Order 25, Rules 5(1) and (2)
  • Civil Procedure Rules, 2010Order 51, Rule 1
  • Constitution of KenyaArticles 40, 47, 48 and 50
Jurisdiction invoked
Order 25, Rules 5(1)(2) and Order 51, Rule 1 of the Civil Procedure Rules, 2010

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, "Kenya Anti-Corruption Commission v Magut Agencies Limited & 3 others [2018] KEELC 2470 (KLR)", Case Analysis (2018). Eldoret ELC suit (application dated 4.4.2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/2470/eng@2018-06-29

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