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ELCPartially AllowedELC Case No. 383 of 2017 (Formerly Machakos ELC Case No. 225 of 2014)· [2019] KEELC 3726 (KLR)

Henry Mutiso v John Korinko Saibato [2019] KEELC 3726 (KLR)

Environment and Land Court
9 April 2019
2,475 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ordered a seller to transfer 20 acres to a buyer despite missing Land Control Board consent, because the buyer had paid and occupied the land for decades.

What this practically means

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Executive summary

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The Plaintiff sued for specific performance of a 1987 Sale Agreement under which the Defendant agreed to sell him 20 acres out of parcel Kajiado/Kaputiei Central/2781 (formerly 510) for Kshs. 60,000. The Defendant, though served, filed no defence and the suit proceeded to formal proof on the Plaintiff's sole testimony. The Plaintiff produced the Sale Agreement, acknowledgements of payment, transfer forms, a Land Control Board consent (which on inspection was for subdivision and not transfer) and evidence of possession and development of the land since 1987, including a permanent house and farming. He further testified that the Defendant repeatedly extorted additional payments, including Kshs. 250,000 on 25th August 2013 after purporting to vary the agreement to demand Kshs. 10,000 per acre. The court framed three issues: entitlement to specific performance, entitlement to damages, and costs. Applying the Court of Appeal decisions in Gurdev Singh Birdi and Willy Kimutai Kitilit v Michael Kibet, it held that a valid enforceable agreement existed and that, despite the absence of timely Land Control Board consent, the doctrines of constructive trust and proprietary estoppel applied, the Plaintiff's payment and long possession creating a trust amounting to an overriding interest. The claim for damages failed because the Plaintiff neither quantified nor proved any loss, the court applying the settled rule that general damages are not recoverable for breach of contract. Judgment was entered partially for the Plaintiff: a declaration of entitlement to the 20 acres, an order compelling the Defendant to execute transfer documents and obtain consent within 60 days failing which the Deputy Registrar to execute, registration of the Plaintiff, and costs of the suit.

Key legal issues

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01

Whether an enforceable Sale Agreement existed entitling the Plaintiff to specific performance

Holding

The Plaintiff proved a valid, enforceable Sale Agreement for 20 acres and was entitled to specific performance

Reasoning

The Plaintiff produced the Sale Agreement, acknowledgements of payment signed by the Defendant, transfer forms, title deed copy and Land Control Board consent. The matter proceeded by formal proof and the evidence was uncontroverted, the Defendant having filed no defence despite appearing with his title deed. Relying on the Court of Appeal decision in Gurdev Singh Birdi, the court found it just and equitable to grant specific performance.

p. 2
02

Effect of the transaction being completed without Land Control Board consent within the statutory six months

Holding

The transaction is not void but enforceable by virtue of the doctrine of constructive trust, which became an overriding interest

Reasoning

Although the consent exhibited was for subdivision rather than transfer, and the required consent was not obtained within six months, the Plaintiff had paid the purchase price and been in possession since 1987. Applying Kitilit v Kibet, the court held equity, elevated by Article 10(2)(b) of the Constitution, supersedes the Land Control Act in such circumstances and a constructive trust arose over the land.

p. 3
03

Whether the Plaintiff was entitled to damages

Holding

Damages were refused as unproven and unquantified

Reasoning

The Plaintiff pleaded damages for breach of contract, loss of time, denial of social amenities, alteration of the agreement, wrongful enrichment and depression, but adduced no evidence quantifying any loss. Relying on Kenya Tourist Development Corporation v Sundowner Lodge, general damages are not recoverable for breach of contract and only proven loss can be compensated.

p. 3

Legal principles established

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  • Specific performance is granted where it is just and equitable and the plaintiff has performed or can perform the essential terms of the contract
  • Constructive trust and proprietary estoppel apply to contracts void for lack of Land Control Board consent, especially where the party in breach has unreasonably delayed
  • General damages are not recoverable in breach of contract; only proven loss may be compensated

Court orders

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  1. 1.A declaration that the Plaintiff is entitled to 20 acres of land out of KAJIADO/KAPUTIEI CENTRAL/2781 which belongs to the Defendant
  2. 2.The Defendant to execute the necessary documents, obtain consent of the Land Control Board and facilitate transfer of the 20 acres out of parcel number KAJIADO/KAPUTIEI CENTRAL/2781 into the Plaintiff's name within 60 days, failing which the Deputy Registrar, Environment and Land Court at Kajiado, to execute the said documents
  3. 3.Upon execution of the transfer documents, the Land Registrar Kajiado to register the Plaintiff on the 20 acres out of KAJIADO/KAPUTIEI CENTRAL/2781
  4. 4.Costs of the suit awarded to the Plaintiff

Authorities

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Legislation

  • Land Control ActSection 6(1)(a)
  • Law of Contract ActSection 3(3)
  • Land ActSection 38(2)
  • Constitution of KenyaArticle 10(2)(b)

Cases cited (3)

  • GURDEV SINGH BIRDI & NARINDER SINGH GHATORA as Trustees of RAMGHARIA INSTITUTE OF MOMBASA v ABUBAKAR MADHBUTI
    [1997] eKLR
  • Willy Kimutai Kitilit v Michael Kibet
    [2018] eKLR
  • Kenya Tourist Development Corporation v Sundowner Lodge Limited
    [2018] eKLR
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over disputes relating to land

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, "Henry Mutiso v John Korinko Saibato [2019] KEELC 3726 (KLR)", Case Analysis (2019). ELC Case No. 383 of 2017 (Formerly Machakos ELC Case No. 225 of 2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/3726/eng@2019-04-09

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