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ELCPartially AllowedELC Case No. 23 of 2017 (Formerly HCCC No. 58 of 2011)· [2019] KEELC 4492 (KLR)

Grace Akinyi Ajwang & another v Rosemary Atieno Abuto & 5 others [2019] KEELC 4492 (KLR)

Environment and Land Court
27 February 2019
5,276 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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A Kisumu court cancelled land transfers made by people who sold a dead man's estate before their succession grant was confirmed, leaving the buyer and its bank with no claim to the land.

What this practically means

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Executive summary

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The Plaintiffs, administrators of the estate of Manason Ogendo Bodo, sued six defendants seeking declarations that the registration of the suit land, Kisumu Municipality/Block 7/319, in the names of the 1st and 2nd Defendants, and its subsequent transfer to the 3rd Defendant and charge to the 4th Defendant, were null and void; rectification of the register; a permanent injunction; and general damages. The 2nd Defendant denied participation, claiming impersonation; the 3rd Defendant claimed to be a bona fide purchaser and counterclaimed for eviction and mesne profits; the 4th Defendant pleaded, among others, that the suit was incompetent under Section 2(3) of the Law Reform Act; the 5th and 6th Defendants denied fraud. The court found the land was first registered in the deceased's name in 1975. Two succession causes existed: No. 213 of 1991 (through which the Plaintiffs' grant was confirmed on 10th August 2010) and No. 700 of 2009, on whose basis the 1st and 2nd Defendants were registered in February 2010 without a certificate of confirmation of grant and while a restriction remained on the register. Relying on Section 82(b)(ii) of the Law of Succession Act and Section 26(1) of the Land Registration Act, the court held that the registrations were irregular, the vendors had no title to pass, and the 3rd Defendant's due diligence was casual, so neither its title nor the charge to the 4th Defendant could stand. Objections to the Plaintiffs' capacity raised only in submissions were rejected as improper. The court nullified the transfers in entries 6 and 8, granted the main suit prayers, dismissed the counterclaim with costs, and declined damages. The 2nd Defendant was exonerated from costs.

Key legal issues

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01

Whether the registration of the 1st and 2nd Defendants as proprietors of the suit land was valid

Holding

Invalid - the entry was made on the basis of a grant with no certificate of confirmation, in breach of Section 82(b)(ii) of the Law of Succession Act and while a restriction was still in place

Reasoning

The register showed a restriction at entry No. 4 stopping dealings, yet the names of the two petitioners in Succession Cause No. 700 of 2009 were entered under R.L 19 on the basis of a grant issued on 23rd February 2010 without any certificate of confirmation identifying the persons and shares. Section 82(b)(ii) prohibits sale of immovable property before confirmation of the grant, so the registration conferred no proprietorship powers.

p. 4
02

Whether the 3rd Defendant obtained good title as a bona fide purchaser

Holding

No - the vendors had no title to pass, the transfer occurred while a restriction was unlifted, no consent to transfer from the Commissioner of Lands was availed, and due diligence was casual

Reasoning

The transfer was procured from vendors without legal capacity or lawful authority; it took place while the restriction at entry No. 4 had not been lifted and without evidence of the Commissioner of Lands' consent. Due diligence by the 3rd Defendant and its advocates was casual and the bare minimum, and no source documents supported the certificates of search. Section 26(1) of the Land Registration Act does not protect such a title.

p. 4
03

Whether the charge in favour of the 4th Defendant is protected

Holding

No - the charge cannot subsist over a void root title; the bank may pursue the 3rd Defendant for its monies

Reasoning

Because the 3rd Defendant never acquired good title, the transaction securing the financial facilities cannot be allowed to subsist. Upholding the title would deprive the beneficiaries of their inheritance. The 4th Defendant, which closed its case without calling witnesses, has the option of following the 3rd Defendant for its money or alternative security.

p. 6
04

Whether the Plaintiffs' capacity/locus standi, raised only in submissions, was a proper issue

Holding

No - matters not pleaded cannot be determined; the issue was raised for the first time in written submissions

Reasoning

The 3rd and 4th Defendants questioned the Plaintiffs' capacity only in written submissions, not in pleadings. Order 2 Rule 4 of the Civil Procedure Rules sets out what must be pleaded, and the Court of Appeal in DEN v PNN confirmed that parties are confined to their pleadings. The counterclaim itself sued the Plaintiffs as personal representatives, so the 3rd Defendant could not turn around and challenge their capacity.

p. 4
05

Whether the 2nd Defendant was liable

Holding

No - her defence that she was impersonated was unchallenged; she was not liable to pay costs

Reasoning

The 2nd Defendant testified that her identity was used by an impersonator and that she never participated in the transactions or in Succession Cause No. 700 of 2009. Her defence was generally unchallenged, and the court accepted that her identity may have been unlawfully acquired to further the fraud.

p. 6

Legal principles established

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  • Sale of immovable property of a deceased's estate before confirmation of grant is prohibited and any such sale is null and void
  • Indefeasibility of title under Section 26(1) of the Land Registration Act does not protect a title acquired illegally, unprocedurally or through a corrupt scheme, even where the title holder is innocent

Court orders

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  1. 1.Prayers (a), (c) and (e) of the plaint dated 20th April 2011 granted (declaration that the registrations were null and void ab initio, rectification of the register, permanent injunction, and costs)
  2. 2.The 3rd Defendant's counterclaim against the Plaintiffs dismissed with costs
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court under the Environment and Land Court Act over disputes relating to title 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, "Grace Akinyi Ajwang & another v Rosemary Atieno Abuto & 5 others [2019] KEELC 4492 (KLR)", Case Analysis (2019). ELC Case No. 23 of 2017 (Formerly HCCC No. 58 of 2011). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/4492/eng@2019-02-27

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