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ELCDismissed· [2018] KEELC 3756 (KLR)

Prical Enterprises Limited v Martha Wangari Mwaura & another [2018] KEELC 3756 (KLR)

Environment and Land Court
27 April 2018
2,599 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This is a ruling of the Environment and Land Court at Thika (L. Gacheru, J) on the Plaintiff/Applicant's Notice of Motion dated 31st October 2016 seeking interlocutory injunctions restraining the Defendants from interfering with LR No. Chania/Kanyoni/2407, a caveat against further dealings, and enforcement assistance from the County Commissioner and OCS Kamwangi. The Plaintiff, a company, bought the suit property from the 1st Defendant under a sale agreement of 26th January 2015, obtained Land Control Board consent, was registered as owner on 6th March 2015, and claims to be a bona fide purchaser for value unaware of family succession disputes. The 2nd Defendant opposed, showing that the High Court in Nairobi Succession Cause No. 180 of 2011, by Ruling of 30th November 2014, revoked the grant under which the 1st Defendant had the property transferred to her and ordered the parcels to revert to the deceased, Mwaura Wangonya. The court held the 1st Defendant had no capacity to sell after reversion; her sale amounted to intermeddling with a deceased's free property contrary to Section 45(1) of the Succession Act, and she had been ordered cited for contempt by a Ruling of 17th March 2016. Applying the Giella v Cassman Brown criteria, the court found no prima facie case, no irreparable loss (the purchase price and investments being quantifiable), and that the balance of convenience favoured maintaining the succession court's orders. The application was dismissed entirely with costs to the 2nd Defendant. To preserve the estate, the court directed the Land Registrar, Gatundu, to place a caveat restricting dealings except through a joint succession process. The Plaintiff was left to sue the 1st Defendant for refund and damages or stake a claim in the Succession Cause.

Key legal issues

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01

Whether the Plaintiff/Applicant had a prima facie case with probability of success

Holding

No - the property had reverted to the deceased's name, the vendor had no capacity to sell, and the Plaintiff's title had been cancelled and revoked by court order

Reasoning

The court found that after the Ruling of 30th November 2014 in Succession Cause No. 180 of 2011, the suit property reverted to the name of the deceased Mwaura Wangonya. The 1st Defendant, not being sole administrator, lacked capacity to sell. The court noted a Ruling of 17th March 2016 directing that the 1st Defendant be cited for contempt. Even the Plaintiff's certificate of title was revoked and the register rectified, leaving the title with no legal effect.

p. 3
02

Whether the Plaintiff would suffer irreparable loss not compensable by damages

Holding

No - the purchase price and alleged investments are quantifiable in monetary terms, whereas the estate would suffer if the Plaintiff remained on the property

Reasoning

The court held the purchase price was a known amount and the alleged heavy investments could be quantified and awarded monetarily. Allowing the Plaintiff to remain would breach the orders of 30th November 2014 and 17th March 2016, cause embarrassment to the Judiciary and the Rule of Law, and prejudice the estate of the deceased. No evidence of irreparable loss was adduced.

p. 3
03

Where the balance of convenience lies

Holding

It tilts in favour of maintaining the orders issued in Succession Cause No. 180 of 2011 and preserving the estate pending succession distribution

Reasoning

The court found no doubt on the third limb but held that if decided, the balance of convenience favours maintaining the succession court's orders. The Defendants were to file a Succession Cause over the deceased's estate and distribute it under the Succession Act. The Plaintiff was advised it could sue the 1st Defendant for refund, damages, costs and interest, or stake a claim in the Succession Cause.

p. 4
04

Whether the sale by the 1st Defendant to the Plaintiff was valid given the subsisting succession proceedings

Holding

Invalid - the 1st Defendant lacked capacity and her sale amounted to intermeddling with the deceased's free property contrary to Section 45(1) of the Succession Act

Reasoning

The property had reverted to the deceased's name following the revocation of the grant in Succession Cause No. 180 of 2011, which had not been appealed or vacated. The 1st Defendant was not the sole administrator and could only dispose of the property after the Succession Cause was finalised. Her sale to the Plaintiff, even after the Ruling, was intermeddling and conferred no good title.

p. 3

Legal principles established

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  • Intermeddling with a deceased person's free property is prohibited by Section 45(1) of the Succession Act except as expressly authorised by the Act, other written law, or a grant of representation
  • A purchaser from a person who had no capacity to sell a deceased's property does not acquire good title and cannot claim to be a bona fide purchaser for value
  • The Giella v Cassman Brown criteria govern the grant of interlocutory injunctions and the discretion must be exercised judicially

Court orders

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  1. 1.The Plaintiff/Applicant's Notice of Motion dated 31st October 2016 is dismissed entirely with costs to the 2nd Defendant/Respondent
  2. 2.The Land Registrar, Gatundu Land Registry, is directed to put a caveat on the suit property and stop any further dealings with it by the 1st Defendant solely, except only on orders or dealings emanating from any Succession Cause wherein both the 1st and 2nd Defendants are involved, and any such dealing be done in the presence of the 2nd Defendant
  3. 3.The Defendants should file Succession Cause over the estate of the deceased Mwaura Wangonya and have the property distributed as per the provisions of the Succession Act

Authorities

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Legislation

  • Succession ActSection 45(1)

Cases cited (1)

  • Giella vs Cassman Brown & Co. Ltd
    1973 E.A 358
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over land disputes (interlocutory application in a pending suit); no specific constitutional or statutory provision invoked in the judgment as the basis of jurisdiction

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, "Prical Enterprises Limited v Martha Wangari Mwaura & another [2018] KEELC 3756 (KLR)", Case Analysis (2018). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/3756/eng@2018-04-27

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