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ELCStruck OutELC Originating Summonses No. 98 of 2017 (Formerly Nakuru (OS) No. 400 of 2013)· [2019] KEELC 2341 (KLR)

Essolly Enterprises Limited v Benjoh Amalgamated Limited [2019] KEELC 2341 (KLR)

Environment and Land Court of Kenya
23 July 2019
3,388 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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A Kenyan court struck out a land claim because the company suing had no board resolution and no certified title extract was attached.

What this practically means

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Executive summary

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The Plaintiff, Essolly Enterprises Limited, filed an Originating Summons dated 30th May 2013 under Section 38 of the Limitation of Actions Act and Order 37 of the Civil Procedure Rules, seeking a declaration that LR No. 12411/1 (IR No. 34775) and LR No. 12411/2 (IR No. 48084), Karati Location, South Kinangop, belong to it, and an order compelling the Commissioner of Lands to issue titles, or in default the Deputy Registrar to sign the transfers. The Plaintiff claimed to have purchased the suit lands for Ksh 19,500,000/= on 25th November 2010, taken possession, and alleged the Defendant refused to sign transfer documents. The suit was disposed of by written submissions by consent. The court framed two issues: whether the Defendant was the registered owner of the suit parcels, and whether the proceedings were authorized by a company resolution. On the first issue, the court held that a claim for adverse possession can only lie against a registered proprietor, and Order 37 Rule 7(2) mandatorily requires annexation of a certified extract of the title; the Plaintiff relied only on sale agreements, which are not evidence of registered ownership. On the second issue, applying Bugerere Coffee Growers Ltd v Sebaduka, Omondi v National Bank of Kenya, and related authorities, the court found no company resolution or letter of authority authorized the suit or the supporting affidavit, rendering the proceedings a nullity. The court struck out the Originating Summons and ordered costs to be met personally, jointly and severally, by Keronge Bosire & Company Advocates and Wachakana Advocates for acting without authority.

Key legal issues

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01

Whether the Plaintiff proved the Defendant's registered ownership of the suit land as required for a claim of adverse possession

Holding

The claim failed because the Plaintiff relied only on sale agreements and did not annex a certified extract of the title as mandated by Order 37 Rule 7(2) of the Civil Procedure Rules

Reasoning

The court held that adverse possession can only be granted against a registered proprietor, and the claimant must prove registration by producing the title or certified extract of title, whether by affidavit or at trial. A sale agreement is not the document envisaged by law to prove ownership. The Originating Summons and supporting affidavit had no certified extract of the register annexed, contravening Order 37 Rule 7(2), so the Plaintiff failed to prove its claim on a balance of probabilities.

p. 4
02

Whether the proceedings were authorized by a resolution of the company

Holding

The suit was a nullity as there was no company resolution or letter of authority authorizing the institution of the proceedings or the swearing of the supporting affidavit

Reasoning

Relying on Bugerere Coffee Growers Ltd v Sebaduka, Omondi v National Bank of Kenya and Philomena Ndanga Karanja v Edward Kamau Maina, the court held that a company must authorize proceedings by a resolution recorded in minutes. The supporting affidavit was sworn by a director without any exhibited resolution or letter of authority. The proceedings in the name of the limited liability company were therefore not sanctioned and were a nullity, with personal costs consequences for the advocates.

p. 4

Legal principles established

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  • An order of adverse possession can only be made against a Respondent who is registered as an owner of land, and the claimant must produce the title or a certified extract of the title.
  • A claim for adverse possession under Section 38 of the Limitation of Actions Act must be supported by an affidavit to which a certified extract of the title is annexed.
  • A suit instituted in the name of a company without a valid company resolution authorizing the proceedings is a nullity.
  • Where an advocate has brought legal proceedings without authority of the purported plaintiff, the advocate becomes personally liable for the costs of the action.

Court orders

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  1. 1.The Originating Summons dated 30th May 2013 struck out
  2. 2.Costs to be met by the firm of Keronge Bosire & Company Advocates and Wachakana Advocates jointly and severally for acting without authority
Jurisdiction invoked
Section 38 of the Limitation of Actions Act (Cap 22) and Order 37 Rules 3, 7, 8 and 9 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, "Essolly Enterprises Limited v Benjoh Amalgamated Limited [2019] KEELC 2341 (KLR)", Case Analysis (2019). ELC Originating Summonses No. 98 of 2017 (Formerly Nakuru (OS) No. 400 of 2013). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/2341/eng@2019-07-23

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