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ELCDismissedE.L.C. Appeal No. 7 of 2017· [2020] KEELC 608 (KLR)

Mary Rita Murangi Ireri v Agnes Igandu Nyaga & another [2020] KEELC 608 (KLR)

Environment and Land Court
15 October 2020
4,753 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~19 min to read original · ~4 min brief

The bottom line

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A Kenyan land buyer lost her claim because the sale was never approved by the Land Control Board within six months, voiding the deal.

What this practically means

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Executive summary

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This was a first appeal to the Environment and Land Court at Embu against the judgment of Hon. M.N. Gicheru (Chief Magistrate) in Embu CMCC No. 170B of 2011, in which the Respondents (as plaintiffs) had successfully sued the Appellant for removal of a caution registered over Title No. Ngandori/Kirigi/8980 and a permanent injunction, while the Appellant's counterclaim for specific performance was dismissed with an alternative refund of the purchase price plus liquidated damages granted. The Appellant raised twelve grounds of appeal, which the court condensed into five issues: whether the trial court erred in allowing the Respondents' suit, declining specific performance, rejecting the Appellant's sale agreement dated 6th May 2011, failing to evaluate the evidence, and costs. Guided by the first appellate court principles in Selle v Associated Motor Boat Co., Peters v Sunday Post and Watt v Thomas, the court re-evaluated the evidence and agreed with the trial court that the genuine agreement was that dated 3rd August 2008 for Kshs. 115,000/-. The 6th May 2011 agreement was rejected because its sole witness disowned it, the attesting advocate was not called, and payment of Kshs. 250,000/- was not proved on a balance of probabilities; the court also found the Appellant had concealed the agreement to steal a match on the Respondents. Critically, the court held that both agreements were null and void for want of Land Control Board consent under section 6 of the Land Control Act, and as trust was never pleaded, the Appellant had no enforceable purchaser's interest protectable by a caution under section 71 of the Land Registration Act. Specific performance was properly declined as the contract was invalid and an adequate alternative remedy existed. The constructive trust argument, raised for the first time on appeal and contrary to distinguishing authorities involving part performance and possession, was not entertained. The appeal was dismissed in its entirety with costs to the Respondents.

Key legal issues

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01

Which of the two competing sale agreements was genuine

Holding

The agreement dated 3rd August 2008 was genuine; the 6th May 2011 agreement was rejected as it was disowned by its witness, its attesting advocate was not called, and the payment of Kshs. 250,000/- was not proved on a balance of probabilities

Reasoning

The court re-evaluated the evidence as a first appellate court. The sole witness to the disputed agreement (Peter Njiru) disowned it and the advocate who attested it was never called as a witness. The Appellant failed to plead the Kshs. 250,000/- price in her defence and counterclaim and withheld the agreement until after the Respondents closed their case, which the court characterized as an attempt to steal a match. The trial court's credibility findings were entitled to due weight.

p. 4
02

Effect of want of Land Control Board consent on both sale agreements

Holding

Both sale agreements were null and void and unenforceable for want of Land Control Board consent, having lapsed after six months; consequently the Appellant had no enforceable purchaser's interest capable of protection by a caution

Reasoning

Section 6 of the Land Control Act (Cap. 302) renders dealings in agricultural land within a land control area void without the Board's consent. The sale agreement dated 3rd August 2008 remained valid for only six months, after which it became null and void. The Respondents never attended the Land Control Board. Trust was never pleaded or established, so the transaction could not be enforced. The Appellant therefore had no protectable interest when she lodged her caution on 19th July 2011.

p. 4
03

Whether specific performance should have been granted

Holding

Specific performance was properly declined because it requires a valid and enforceable contract, and the refund of the purchase price with liquidated damages was an adequate alternative remedy which the Appellant herself had pleaded

Reasoning

Relying on the Appellant's own authority, Reliable Electrical Engineers v Mantrac Kenya Ltd, the court noted that specific performance is discretionary and premised on a valid enforceable contract. Since the agreement became null and void after six months, there was no contract to enforce. No material demonstrated that the refund plus liquidated damages was inadequate, and the Appellant had herself prayed for that alternative remedy in her counterclaim.

p. 5
04

Whether the trial court erred in evaluation of evidence and burden of proof

Holding

The trial court did not err; it was upon the Appellant to prove payment of Kshs. 250,000/-, and the trial court was entitled to consider that the witness disowned the agreement and the advocate was not called

Reasoning

The Appellant's own evaluation of the record led the court to the same conclusion as the trial court. It was logical to expect the Appellant to specify the price she paid after denying Kshs. 115,000/-. The credibility findings of a tribunal that saw and heard the witnesses are entitled to great weight, and nothing showed the trial court failed to take account of material circumstances or probabilities.

p. 6
05

Whether the Appellant's claim of constructive trust could be entertained

Holding

No - the issue of trust was raised for the first time in submissions, was not pleaded or canvassed at trial and was not in the memorandum of appeal, so the court declined to adjudicate on it; in any event the distinguishing authorities involved part performance and possession, absent here

Reasoning

A new issue not raised in pleadings, at trial or in the memorandum of appeal cannot be entertained on appeal. Further, Macharia Mwangi Maina and Willy Kimutai Kitilit were distinguishable because in those cases the purchasers had sold voluntarily and put the purchasers in possession for long periods, whereas here there was no part performance and the Appellant was never given possession.

p. 5

Legal principles established

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  • A first appellate court must analyze, reconsider and re-evaluate the entire evidence on record to satisfy itself as to the correctness of the trial court's decision, while making due allowance for not having seen or heard the witnesses
  • Transactions involving agricultural land within a land control area are void unless the Land Control Board gives its consent, and lack of consent renders the transaction unenforceable except where trust has been established
  • Specific performance is a discretionary equitable remedy granted only on the basis of a valid enforceable contract and will be refused where an adequate alternative remedy exists
  • A purchaser without an enforceable interest has no caution capable of protection under section 71 of the Land Registration Act, 2012
  • Costs follow the event under section 27 of the Civil Procedure Act and a successful party should ordinarily be awarded costs unless the court for good reason directs otherwise

Court orders

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  1. 1.The appeal is dismissed in its entirety
  2. 2.Costs of the appeal awarded to the Respondents

Authorities

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Legislation

  • Land Control ActSection 6(1)
  • Land Registration Act, 2012Section 71(1)
  • Civil Procedure ActSection 27
  • Development and Use of Land (Planning) Regulations, 1961

Cases cited (11)

  • Selle & Another Vs Associated Motor Boat Co. Ltd & Others
    [1968] EA 123
  • Peters Vs Sunday Post Ltd
    [1958] EA 424
  • Watt Vs Thomas
    [1947] A.C 424
  • Wamukota v Donati
    [1987] KLR 280
  • Kariuki v Kariuki
    [1983] KLR 225
  • Simiyu v Watambamala
    [1985] KLR 852
  • David Sironga Ole Tukai v Francis Arap Muge & 2 Others
    [2014] eKLR
  • Reliable Electrical Engineers v Mantrac Kenya Ltd
    [2006] eKLR
  • Macharia Mwangi Maina & 87 Others v Davidson Mwangi Kagiri
    [2014] eKLR
  • Willy Kimutai Kitilit v Michael Kibet
    [2018] eKLR
  • Hussein Janmohammed & Sons Vs Twentsche Overseas Trading Co. Ltd
    [1967] EA 287
On appeal from
Chief Magistrate's Court at Embu
Embu CMCC Case No. 170B of 2011
Jurisdiction invoked
First appeal from the Chief Magistrate's Court pursuant to the Environment and Land Court's appellate jurisdiction over land disputes (Environment and Land Court Act); memorandum of appeal dated 7th July 2017

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, "Mary Rita Murangi Ireri v Agnes Igandu Nyaga & another [2020] KEELC 608 (KLR)", Case Analysis (2020). E.L.C. Appeal No. 7 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/608/eng@2020-10-15

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