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ELCDismissedNot stated in judgment· [2018] KEELC 2643 (KLR)

Daniel G. Mwangi & another v Leiyian Tumuti [2018] KEELC 2643 (KLR)

Environment and Land Court
3 July 2018
1,434 words in judgment
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The bottom line

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The Environment and Land Court in Kajiado ruled that a 21-year-old land claim alleging fraud can proceed, because fraud claims are not automatically time-barred in Kenya.

What this practically means

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Executive summary

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The Defendant filed a Preliminary Objection dated 16th April, 2017 seeking the striking out of the Plaintiffs' suit on three grounds: that the suit was defective, incompetent, frivolous and bad in law; that it offended the Limitation of Actions Act Cap 22; and that it offended the Civil Procedure Rules 2010. The Defendant contended that the 1996 transaction involving Kshs. 200,000 was a loan secured by title to parcel NGONG/NGONG/5464 which had been repaid, that the 2nd Plaintiff was a stranger to the transaction and lacked authority, and that a suit filed 21 years later was barred by Section 7 of the Limitation of Actions Act. The Plaintiffs maintained that they purchased the land in 1996, were in possession of the title deed, and that the Defendant had failed to transfer the land, with the Plaint seeking specific performance or, in the alternative, a refund of Kshs. 291,000 plus interest. The court framed two issues: limitation and whether the suit was defective. On limitation, the court held that the Plaint pleaded fraud, engaging Section 26 of the Limitation of Actions Act, so the claim was not statute barred and required viva voce evidence. On defectiveness, applying Ramji Megji Gudka Ltd v Alfred Morfat Omundi Michira and DT Dobie & Co Ltd v Muchina, and guided by Section 19(1) of the Environment and Land Court Act and Article 159(2)(d) of the Constitution, the court found the Plaint raised triable issues including breach of contract and fraud, with curable technicalities. The Preliminary Objection was dismissed with costs in the cause.

Key legal issues

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01

Whether the suit is barred by limitation

Holding

The suit is not statute barred because the Plaint alleges fraud, and Section 26 of the Limitation of Actions Act postpones limitation until discovery of the fraud; such allegations cannot be resolved on a preliminary objection without viva voce evidence.

Reasoning

The Defendant invoked Section 7 of the Limitation of Actions Act, arguing the 1996 transaction was filed in 2017. The court noted the Plaint pleads fraud in the Defendant's failure to transfer the suit land. Section 26 of the Act provides that where an action is based on the fraud of the defendant, limitation does not begin to run until the plaintiff discovered or could with reasonable diligence have discovered the fraud. Allegations of fraud require evidence and cannot be determined summarily.

p. 2
02

Whether the suit is defective, incompetent, frivolous and bad in law

Holding

The suit is not defective; although imperfectly drafted, it raises triable issues including breach of contract and fraud, and procedural technicalities can be cured by amendment.

Reasoning

The court considered the 2nd Plaintiff's sworn statement asserting authority, the clarity of the prayers for specific performance or refund of Kshs. 291,000, and the guidance in Ramji Megji Gudka Ltd v Alfred Morfat Omundi Michira that striking out must be sparingly exercised in the clearest of cases. Section 19(1) of the Environment and Land Court Act and Article 159(2)(d) of the Constitution require justice without undue regard to technicalities, so the pleaded technical defects were curable by amendment.

p. 2

Legal principles established

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  • A suit founded on allegations of fraud is not statute barred under Section 7 of the Limitation of Actions Act; time does not begin to run until discovery of the fraud.
  • The power to strike out pleadings must be sparingly exercised and only in the clearest of cases.

Court orders

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  1. 1.The Preliminary Objection dated 16th April, 2017 is dismissed
  2. 2.Costs will be in the cause

Authorities

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Legislation

  • Limitation of Actions ActSection 7
  • Limitation of Actions ActSection 26
  • Civil Procedure Rules 2010Order 1 rule 13
  • Civil Procedure Rules 2010Order 1 Rule 14
  • Environment and Land Court ActSection 19(1)
  • Constitution of KenyaArticle 159(2)(d)

Cases cited (3)

  • Giella Vs Cassman
  • RAMJI MEGJI GUDKA LTD –Vs- ALFRED MORFAT OMUNDI MICHIRA & 2 OTHERS
    [2005] eKLR
  • DT DOBIE & COMPANY (KENYA) LTD. V. MUCHINA
    [1982] KLR 1
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court under the Environment and Land Court Act

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Daniel G. Mwangi & another v Leiyian Tumuti [2018] KEELC 2643 (KLR)", Case Analysis (2018). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/2643/eng@2018-07-03

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