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ELCPartially AllowedMombasa ELC Case (Consent Order adopted 23rd November 2016; application dated 5th March 2018)· [2019] KEELC 3844 (KLR)

Mohamed Mahfudh v Amina Sheyumbe Muhaji; Mohamed Omar Salim (Intended Interested Party/Applicant) [2019] KEELC 3844 (KLR)

Environment and Land Court
5 April 2019
2,493 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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A Kenyan court set aside a land consent order because it cancelled a buyer's caveats without ever hearing him.

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 Mombasa on a notice of motion dated 5th March 2018 by Mohamed Omar Salim, an intended interested party claiming a purchaser's interest in Subdivision No. 2932 (Original Number 1365/2 Section I Mainland North) bought from the defendant under a sale agreement dated 13th November 2009, against which he had paid Kshs 8 million and lodged a caveat in December 2009. He sought to be enjoined as 2nd defendant, to set aside the consent order of 3rd November 2016 adopted as judgment on 23rd November 2016, to file a defence and counterclaim out of time, to consolidate the suit with Mombasa ELC No. 363 of 2016, and to obtain restraining orders. The plaintiff and defendant opposed, raising preliminary objections that the court was functus officio having entered a final decree, that the applicant lacked locus standi, that the application was res judicata the ruling in ELC 363 of 2016, and that he was guilty of laches. Omollo J held that the consent order's clauses cancelling the title endorsement and removing all caveats vitiated the applicant's rights without joining or hearing him, giving him both locus and a good ground to set aside the consent. The application was not res judicata since the ELC 363 of 2016 ruling never dealt with setting aside the consent order, and the court was not functus officio because its jurisdiction to set aside orders on good grounds is unlimited. The court granted the application in terms of prayers (3) to (7), granted prayer 8 on terms restricting the plaintiff only, and ordered costs of the motion to abide the outcome of the main suit.

Key legal issues

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01

Whether the intended interested party has locus standi

Holding

The applicant has locus because clauses of the consent order vitiated his rights without joining or hearing him, giving him a right to participate in the proceedings.

Reasoning

Paragraphs 4 and 5 of the consent order directed the Registrar to cancel the endorsement on the title and remove all caveats, which destroyed the validity of the documents the applicant held from the defendant. Since his rights were affected without participation or a hearing, he acquired a right to be heard and to challenge the consent order.

p. 3
02

Whether the application is res judicata the ruling in ELC No. 363 of 2016

Holding

It is not res judicata; the ruling in ELC 363 of 2016 dealt only with injunction principles and never addressed setting aside the consent order.

Reasoning

Komingoi J in ELC 363 of 2016 declined the injunction on balance of convenience and occupation, and only noted the consent order in passing. The issue of setting aside the consent order was not in dispute or determined there, so the elements of res judicata were not met and the preliminary objection failed.

p. 3
03

Whether the Court is functus officio

Holding

No; the jurisdiction to set aside an order or judgment on good grounds is unlimited.

Reasoning

The functus officio doctrine applies where a court that has concluded a matter is asked to grant fresh substantive relief such as post-judgment injunctions without a prior prayer for setting aside. Here the application is squarely one to set aside a consent judgment, which the court retains jurisdiction to entertain on good grounds.

p. 3
04

Whether the consent order should be set aside

Holding

Yes - it affected the applicant's rights without his participation, amounting to a good ground for setting it aside.

Reasoning

Although there was no privity of contract between the plaintiff and the applicant, the consent order's clauses cancelling the title endorsement and removing all caveats directly vitiated the applicant's claimed purchaser's interest. Setting aside consent orders on collusion or third-party rights grounds is permitted, and the applicant showed grounds entitling him to be heard before full implementation.

p. 3

Legal principles established

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  • A consent judgment or order which adversely affects the rights of a third party without joining or hearing that party is a good ground for setting it aside
  • A court is not functus officio where the application before it is to set aside an order or judgment on good grounds

Court orders

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  1. 1.Leave granted to the intended interested party to be enjoined in the proceedings as 2nd defendant
  2. 2.Leave granted to appoint the firm of Khaminwa & Khaminwa Advocates to act for the interested party
  3. 3.Consent Order dated 3rd November 2016 set aside and suit to be fixed for full hearing on the merits
  4. 4.Leave granted to file and serve defence and counterclaim out of time
  5. 5.Suit consolidated with Mombasa ELC No. 363 of 2016, Mohamed Omar Salim v Amina Sheyumbe Muhaji, Mohamed Mahfudh Saad & County Land Registrar
  6. 6.Plaintiff directed not to transfer the title or part with possession of the suit land pending hearing and determination of the suit
  7. 7.Costs of the motion to abide the outcome of the main suit

Authorities

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Legislation

  • Civil Procedure RulesOrder 1 rules 3 & 10
  • Civil Procedure RulesOrder 9 rule 9
  • Civil Procedure RulesOrder 50 rule 6
  • Civil Procedure RulesOrder 40 rules 1, 2 & 3

Cases cited (6)

  • Brooke Bond Liebig (T) Limited vs Maliya
    (1975) E.A 266
  • KCB Ltd vs Specialised Engineering & Co Ltd
    (1982) KLR 485
  • Samuel Wambugu vs Othaya Boys High School
    (2014) eKLR
  • Makuba International Ltd vs His Eminence Cardinal Nsubuga & Another
    (1982) HCB 11
  • William Muthee Muthami vs Bank of Baroda
    CA No. 21 of 2006
  • The Board of Trustees NSSF vs Michael Mwalo
    (2015) eKLR
Jurisdiction invoked
Inherent jurisdiction under the Civil Procedure Rules (Orders 1, 9, 40 and 50) to enjoin an interested party and set aside a consent order

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, "Mohamed Mahfudh v Amina Sheyumbe Muhaji; Mohamed Omar Salim (Intended Interested Party/Applicant) [2019] KEELC 3844 (KLR)", Case Analysis (2019). Mombasa ELC Case (Consent Order adopted 23rd November 2016; application dated 5th March 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/3844/eng@2019-04-05

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