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ELCPartially AllowedNot stated in the judgment as supplied· [2019] KEELC 4107 (KLR)

Marclus Kiranga Nimrod & another v Nessy Kuthii Justus & another [2019] KEELC 4107 (KLR)

Environment and Land Court
22 March 2019
2,100 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~8 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court cancelled a land buyer's title, ruling that even innocent purchasers must investigate how the seller obtained the title before buying.

What this practically means

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Executive summary

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The plaintiffs sued over land parcel KIINE/RUKANGA/2336, bought by the 1st plaintiff from his sister and registered in the name of the 2nd plaintiff, his minor son. The 1st defendant, the 1st plaintiff's estranged wife, allegedly procured an ex-parte order in Miscellaneous Application No. 4 of 2011 (Kerugoya) rectifying the register to substitute her name, then sold the land to the 2nd defendant. The 2nd plaintiff initially withdrew the suit but disputed the withdrawal. The plaintiffs sought a declaration that the sale was null and void, cancellation of the 2nd defendant's registration, and general damages; the 2nd defendant counter-claimed for trespass. The 2nd defendant relied on the indefeasibility of title under Sections 25 and 26 of the Land Registration Act, asserting he was a bona fide purchaser for Ksh. 3 million. The court held that fraud must be proved to a standard above balance of probabilities, and that under Section 26(1)(b) a title is impeachable where acquired illegally, un-procedurally or through a corrupt scheme, even against an innocent purchaser. Since the 1st plaintiff was not party to the sale, the transfer documents were forged, and the 2nd defendant failed to conduct due diligence beyond the certificate of search, the title was found liable to cancellation. The plaintiffs' suit was allowed and the counter-claim dismissed with costs to the plaintiffs; however, the judgment records an internally contradictory costs order awarding costs of the suit to the defendants jointly and severally.

Key legal issues

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01

Fraudulent registration and impeachability of the 2nd defendant's title

Holding

The title of the 2nd defendant was obtained illegally, un-procedurally and through a corrupt scheme, and is therefore liable to be cancelled notwithstanding Section 25/26 protection

Reasoning

The 1st defendant procured an ex-parte rectification of the register in Misc. Application No. 4 of 2011 without service on the registered minor proprietor or his guardian. The 1st plaintiff was not a party to the sale agreement with the 2nd defendant. The documents conveying title to the 2nd defendant were forged. Applying Section 26(1)(b) of the Land Registration Act, the court held that an innocent purchaser's title is impeachable where acquisition was illegal, un-procedural or through a corrupt scheme, and a purchaser must conduct due diligence.

p. 4
02

Constructive/implied trust over land registered in a minor's name

Holding

The parents who caused the land to be registered in the minor's name held it in trust, and could not defeat that trust by covert transfer

Reasoning

The plaintiffs submitted that the parents' assumption of obligations upon registering the property in the minor's name created a constructive trust, so the 1st defendant, as trustee, could not transfer the property for her own benefit. The court's finding on fraudulent ex-parte rectification effectively upheld the minor's interest.

p. 2

Legal principles established

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  • Fraud must be pleaded and proved to a standard higher than the balance of probabilities
  • Under Section 26(1)(b) of the Land Registration Act, a title acquired illegally, un-procedurally or through a corrupt scheme is impeachable even against an innocent purchaser who was not party to the vitiating factors
  • A purchaser must exercise due diligence beyond a certificate of search to establish how the seller obtained title

Court orders

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  1. 1.Declaration that the sale of land parcel No. KIINE/RUKANGA/2336 from the 1st defendant to the 2nd defendant is null and void (suit allowed)
  2. 2.The plaintiffs' prayers sought in the plaint granted
  3. 3.Suit allowed with costs to the defendants jointly and severally (as stated in the judgment)
  4. 4.The 2nd defendant's counter-claim dismissed with costs to the plaintiffs

Authorities

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Legislation

  • Land Registration ActSection 25
  • Land Registration Act No. 3 of 2012Section 26 (and 26(1)(a) and (b))
  • Land Registration ActSection 23(1) (as cited within Arthi Highway Developers case)

Cases cited (13)

  • Ayoub Vs Standard Bank of South Africa
    (1963) E.A 619
  • Mutsonga Vs Nyali
    (1984) K.L.R 425
  • Kanyi Vs Muthiora
    (1984) K.L.R 712
  • Bank PLC Vs Rosset
    (1991) 1 A.C. 107
  • Hussey Vs Palmers
    (1972) All E.R 744
  • Elijah Makeri Nyangwara Vs Stephen Mungai Njuguna & another
    (2013) e K.L.R
  • Michael Muraya Kirara Vs County Commissioner Muranga County and another
    (2016) e K.L.R
  • Present Truth Fellowship (K) Vs Teresia Wanjiru & 2 others
    (2017) e K.L.R
  • Samuel Kipkurgat Soc Vs John Kipkoech Soc
    (2017) e K.L.R
  • Peter Wafula Khaemba Vs Mary Chelimo Sirima & 6 others
    (2017) e K.L.R
  • Eva Kimea & another Vs Nawal Abdulrahaman Abdalla
    (2015) e K.L.R
  • Arthi Highway Developers Ltd Vs West End Limited & 6 others
    (2015) e K.L.R
  • Iqbal Singh Ral Vs Mark Lecchini and the Registrar of titles
    Civil Case No. 1054 of 2001
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over land parcels (civil suit; specific provision not stated in the judgment)

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, "Marclus Kiranga Nimrod & another v Nessy Kuthii Justus & another [2019] KEELC 4107 (KLR)", Case Analysis (2019). Not stated in the judgment as supplied. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/4107/eng@2019-03-22

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