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ELCAllowedELC Suit No. 586 of 2008· [2020] KEELC 370 (KLR)

Joseph Mbau Gitau v Joreth Limited & another [2020] KEELC 370 (KLR)

Environment and Land Court
29 October 2020
1,353 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Nairobi court returned occupied family land to its owner because the buyer never checked who was living on it.

What this practically means

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Executive summary

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The Plaintiff, son of a former shareholder of Thome Farmers No.5 Limited, sued the 1st Defendant (Joreth Limited) and the 2nd Defendant seeking a permanent injunction restraining any transfer of plot No.409, which became LR No.13330/171, and an order compelling the 1st Defendant to execute a transfer to him. He claimed his father was allocated the plot, transferred it to him, and that he held a share certificate and was in occupation through a neighbour who planted napier grass. He learned in 2007 that the land had been repossessed and sold to the 2nd Defendant pursuant to a consent in HCCC No.6206 of 1992 (Joreth Limited v Lewis Kibue & 23 Others); his tender of Kshs.200,000 was rejected because the property had already been sold. The 1st Defendant filed a defence but adduced no evidence. The 2nd Defendant testified she bought the property on 22nd February 2007, did no due diligence, and that her executed transfer remains unregistered due to this suit. The court held that pleadings unsupported by testimony carry no weight, found no evidence of lawful repossession, and held the 2nd Defendant was not an innocent purchaser for value without notice because she bought occupied land without due diligence. The court distinguished its earlier decision in Kenneth Chege Kamau v Thome Farmers No.5 Limited, where purchasers had done due diligence on vacant registered land. Finding the claim proved on a balance of probabilities, the court granted a permanent injunction, ordered the 1st Defendant to execute a transfer to the Plaintiff, and awarded costs against the Defendants.

Key legal issues

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01

Whether the suit property was lawfully repossessed and sold to the 2nd Defendant

Holding

The repossession and sale was not proved; no evidence was adduced by the 1st Defendant to support its defence of repossession

Reasoning

The court noted there was no dispute that plot No. 409 was allocated to the Plaintiff's father and transferred to the Plaintiff, and that the Plaintiff was in possession. The 1st Defendant adduced no evidence supporting its claim of repossession, so its pleadings carried no evidential weight. The 2nd Defendant admitted carrying out no due diligence and made no inquiry about the napier grass and occupation, so the alleged repossession and sale could not stand.

p. 2
02

Whether the 2nd Defendant was an innocent purchaser for value without notice

Holding

She was not, because she bought occupied land without any due diligence

Reasoning

The 2nd Defendant testified she was not shown any title documents and trusted the directors of the 1st Defendant. On cross-examination she confirmed she found napier grass grown on the property but did not ask who had planted it. The court held that a diligent investor would have been alarmed by occupation of the land, and therefore she could not rely on the defence of innocent purchaser for value without notice.

p. 2
03

Whether the court's earlier decision in Kenneth Chege Kamau v Thome Farmers No.5 Limited compelled dismissal of the Plaintiff's case

Holding

That decision was distinguishable on the facts and did not apply

Reasoning

The Defendants urged the court to follow its prior findings and dismiss the suit. The court distinguished the earlier case: the plaintiffs there were not in possession of the suit property, the purchasers there had carried out due diligence and found the land registered in the seller's name and vacant, and the claim there was of fraudulent registration. In the present case there was no due diligence and no evidence of lawful repossession, so the precedent did not govern.

p. 2

Legal principles established

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  • Pleadings are not evidence unless backed by testimony; a party that adduces no evidence in support of its defence can attach little weight to its allegations
  • A purchaser of occupied land who conducts no due diligence cannot qualify as an innocent purchaser for value without notice

Court orders

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  1. 1.A permanent injunction restraining the Defendants, their servants, employees, agents or whosoever from transferring, delineating, transmitting or registering any transfer executed between themselves or any other parties, or in any other manner interfering with plot No.409 now known as LR No.13330/171 other than transfer to the Plaintiff
  2. 2.An order directing the 1st Defendant to execute a transfer in favour of the Plaintiff in respect of LR No.13330/171
  3. 3.Costs of the suit to be paid by the Defendants

Authorities

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Cases cited (2)

  • Kenneth Chege Kamau & 2 Others v Thome Farmers No.5 Limited & 3 Others
    (2019) eKLR
  • Joreth Limited v Lewis Kibue & 23 Others
    HCCC No. 6206 of 1992
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over disputes relating to ownership, occupation and title to land

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Joseph Mbau Gitau v Joreth Limited & another [2020] KEELC 370 (KLR)", Case Analysis (2020). ELC Suit No. 586 of 2008. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/370/eng@2020-10-29

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