Julius Njue Mukangu v Augustino Kinyua Njiru & another [2019] KEELC 208 (KLR)
The bottom line
#A land buyer whose deal failed for lack of consent can still sue for a refund in Kenya, even if the sale agreement was unsigned properly.
What this practically means
#Executive summary
#Key legal issues
#Effect of failure to file record of appeal within the ordered timeline
The appeal stood struck out automatically by the default clause of 10 July 2019; there was no competent appeal before the court
The court found that the Appellant defaulted in filing the record of appeal within the stipulated time or at all. The certificate of delay did not excuse the default: certified proceedings were ready as far back as 28 December 2018 but were only collected on 30 September 2019, and no explanation was given for the further delay after collection. The court held the Appellant had not been diligent in prosecuting the appeal.
Whether section 3(3) of the Law of Contract Act rendered the Respondent's suit incompetent
No - the suit was for a refund of the purchase price, not for enforcement of the unattested sale agreement
Although the sale agreement was not attested as required by section 3(3), the cause of action pleaded was recovery of the purchase price after total failure of consideration following the transaction falling through for lack of Land Control Board consent. That is a different cause of action from enforcement of the agreement, so the formalities bar did not apply.
Whether the suit was incompetent under sections 6(1) and 8(1) of the Land Control Act
No - the void agreement did not defeat the statutory right to recover the purchase price as a debt under section 7 of the Land Control Act
It was common ground that the agreement became void for want of Land Control Board consent. However, the Court of Appeal in Ole Tukai recognized the purchaser's right in a void transaction to recover the purchase price as a debt, a right specifically provided for in section 7 of the Land Control Act. The suit was for a refund, not specific performance, and was thus permitted by law.
Whether ex parte leave to file suit out of time could be challenged by preliminary objection
No - such leave may only be challenged at the trial of the action
Relying on Mary Wambui Kabugu v Kenya Bus Services and the Oruta decision, the court held that a defendant who learns of the extension order upon being served cannot apply to set it aside before trial; the challenge must be at trial on facts or arguments where facts are not in dispute. A preliminary objection to such leave would be contrary to the policy and intention of the Limitation of Actions Act.
Legal principles established
#- A suit for refund of the purchase price under a void land sale agreement is a different cause of action from enforcement of the agreement and is not barred by section 3(3) of the Law of Contract Act
- A purchaser in a void land transaction has a statutory right to recover the purchase price as a debt under section 7 of the Land Control Act
- Ex parte leave to file suit out of time under the Limitation of Actions Act cannot be challenged by way of preliminary objection; it may only be challenged at the trial
- An appeal stands struck out automatically where the appellant defaults in filing the record of appeal within the court-ordered timeline
Court orders
#- 1.The appeal is dismissed in its entirety
- 2.Costs of the appeal awarded to the Respondent
- On appeal from
- Chief Magistrate's Court at Embu
- Embu CMCC No. 28 of 2015
- Jurisdiction invoked
- First appellate jurisdiction of the Environment and Land Court over appeals from subordinate courts (statutory appeal against the ruling and order of 16.12.2015 in Embu CMCC No. 28 of 2015)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Julius Njue Mukangu v Augustino Kinyua Njiru & another [2019] KEELC 208 (KLR)", Case Analysis (2019). E.L.C. Appeal No. 13 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/208/eng@2019-11-28
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.