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ELCPartially AllowedELC Case No. 365 of 2010· [2019] KEELC 1162 (KLR)

Harish Ramji & 2 others v Mombasa Cement Limited & another [2019] KEELC 1162 (KLR)

Environment and Land Court
11 October 2019
5,529 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~22 min to read original · ~4 min brief

The bottom line

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A Kenyan court threw out landowners' trespass suit, holding that a title document alone cannot prove ownership when how the land was acquired is questioned.

What this practically means

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Executive summary

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The three Plaintiffs, registered proprietors of L.R. No. 11895/50 as nominees and assignees of Golden Terrace Limited, sued Mombasa Cement Limited (1st Defendant) for permanent injunction over alleged trespass, and joined the National Social Security Fund (2nd Defendant) as the vendor. The 1st Defendant counterclaimed, asserting it had purchased the same 7.47-acre portion from the 2nd Defendant in 2006, had paid the deposit and balance through the vendor's advocates, had taken possession, and that the subsequent transfer to the Plaintiffs was fraudulent and in breach of the consent recorded in HCCC No. 22 of 2007, which it said required the land to be shared proportionately among all purchasers. It sought rectification of the register, a declaration of entitlement to transfer, indemnity against the 2nd Defendant, and alternatively damages or a refund. The Plaintiffs relied on their registered title and the sanctity conferred by Section 23 of the then Registration of Titles Act; the 1st Defendant relied on correspondence showing its purchase and payments. The court directed parties to file survey plans, which showed L.R. No. 11895/24 was subdivided into twelve portions of which only two were transferred to Harp Investco Limited and the Plaintiffs, confirming that all purchasers were to share proportionately. The court found the Plaintiffs failed to prove payment of the purchase price by Golden Terrace Limited, the consideration for the assignment to the Plaintiffs, or why only 3.043 ha was transferred out of 120 acres purchased. It found the 2nd Defendant dishonest for taking the 1st Defendant's payments and then transferring the land to the Plaintiffs. The Plaintiffs' suit was dismissed with costs to the 1st Defendant borne by the 2nd Defendant, and prayers (a), (b) and (c) of the counterclaim were granted with costs to the 1st Defendant borne by the 2nd Defendant.

Key legal issues

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01

Whether the Plaintiffs proved a valid root of title through assignment by Golden Terrace Limited

Holding

The Plaintiffs failed to prove their claim; no evidence of payment of the deposit or purchase price by Golden Terrace Limited, no evidence of consideration for the assignment, and no explanation why only 3.043 ha out of the 120 acres purchased was transferred.

Reasoning

The court found the Plaintiffs' chain of title unproven: there was no evidence Golden Terrace Limited paid the deposit or balance under the 22/12/2006 sale agreement; the assignment to the Plaintiffs rested on an unwritten gentleman's agreement with unproven consideration; and the transfer covered only 3.043 ha against a purchase of 120 acres with no explanation. The transfer also contained internal discrepancies in land reference numbers and registration timing.

p. 5
02

Whether the consent in HCCC No. 22 of 2007 recognized only Harp Investco Limited and Golden Terrace Limited as sharing the land

Holding

The consent provided that all purchasers would share L.R. No. 11895/24 proportionately, not just the two named purchasers; the survey plans confirmed only two of twelve subdivisions went to Harp Investco Limited and the Plaintiffs.

Reasoning

On cross-examination the 1st Plaintiff conceded the consent stipulated that L.R. No. 11895/24 would be shared by all purchasers. Survey plan F/R 359/13 showed the land was subdivided into twelve portions, of which only two were transferred to Harp Investco Limited and the Plaintiffs, confirming that the other purchasers, including the 1st Defendant, were entitled to their portions under the consent.

p. 4
03

Whether the transfer of the suit land to the Plaintiffs was fraudulent and in breach of the decree and the 1st Defendant's agreement with the 2nd Defendant

Holding

The court found the 2nd Defendant was not honest: it took payment from the 1st Defendant for 7.47 acres while its advocates confirmed the transaction was on course, then transferred the same portion to the Plaintiffs.

Reasoning

The correspondence from Wetangula Adan Makokha and Company Advocates showed the 1st Defendant was offered 7.47 acres, paid the deposit and balance, was told the matter had been settled and its title would issue on completion, yet the 2nd Defendant reneged and transferred the land to the Plaintiffs. The court criticised the 2nd Defendant's use of different land references interchangeably and found its conduct indefensible.

p. 5

Legal principles established

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  • A registered proprietor whose root of title is under challenge must prove the legality of the acquisition and cannot rely on the title alone.

Court orders

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  1. 1.The Plaintiffs' suit is dismissed with costs to the 1st Defendant, to be borne by the 2nd Defendant
  2. 2.Prayers (a), (b) and (c) of the 1st Defendant's counterclaim dated 3/4/2019 are granted
  3. 3.The 1st Defendant is awarded the costs of the counterclaim, to be borne by the 2nd Defendant

Authorities

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Legislation

  • Registration of Titles Act (repealed)Section 23
  • Law of Contracts ActSection 3(3)

Cases cited (2)

  • Arthi Highway Developers Limited v West End Butchery Limited and 6 others
    [2015] eKLR
  • Sammy Mwangangi and 10 others v Commissioner of Lands and 3 others
    [2018] eKLR
Jurisdiction invoked
Article 162(2)(b) of the Constitution (Environment and Land Court) - original jurisdiction over land disputes; Article 165 as invoked by the court's establishment

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, "Harish Ramji & 2 others v Mombasa Cement Limited & another [2019] KEELC 1162 (KLR)", Case Analysis (2019). ELC Case No. 365 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/1162/eng@2019-10-11

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