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ELCAllowedNot stated in the judgment (application dated 22nd October, 2019)· [2020] KEELC 1204 (KLR)

Republic v Commissioner of Lands Chief Land Registrar Ex Parte Edward Lenjo Musamuli & 5 others; Isangawishi Group Ranch(Interested Party) [2020] KEELC 1204 (KLR)

Environment and Land Court of Kenya
23 September 2020
1,224 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~5 min to read original · ~4 min brief

The bottom line

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A Kenyan court allowed a debt to be recovered from shares a deceased person left in his estate, ordering the companies to sell them.

What this practically means

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Executive summary

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This was a Notice of Motion dated 22nd October, 2019 brought under Order 22 Rule 40 of the Civil Procedure Rules by the Interested Party/Applicant, a decree-holder in a suit in which a decree for party and party costs of Kshs.7,434,045 plus interest was entered on 28th March, 2008 against the ex-parte applicants, the 1st of whom, Edward Lenjo Musamuli, died on 4th December, 2012. Following succession proceedings in Voi P&A Cause No. 50 of 2015 (formerly Mombasa HCC Succession Cause No. 499 of 2014), Everest Matolo Lenjo and Dominy Lenjo were appointed administrators of the deceased's estate, whose confirmed grant listed the deceased's shares in seven companies (including Centum Investment Company Limited and East Africa Breweries Limited) as undistributed assets. The applicant sought prohibitory orders against the companies and the administrators, and directions for disposal of the shares to satisfy the decree. The administrators opposed, arguing they were not parties to the suit, that the rule applies only where the share owner is alive, that prior attempts at recovery had failed against the deceased's assets, and that the applicant had not pursued other living ex-parte applicants. The court found it undisputed that the decree was unpaid, that the administrators had been validly appointed, and that the shares belonged to the deceased. It allowed the application, issued prohibitory orders, and directed the companies to dispose of the shares to settle the decretal sum with interest, awarding the applicant costs. Judgment delivered electronically at Mombasa on 23rd September, 2020 during the COVID-19 pandemic.

Key legal issues

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01

Whether a prohibitory order under Order 22 Rule 40 CPR can issue against shares of a deceased judgment debtor held by his estate

Holding

Yes. The court allowed attachment of the deceased's shares since the shares formed part of the estate per the confirmed grant and the decretal sum remained outstanding.

Reasoning

The court noted the decree for costs of Kshs.7,434,045 stood against the ex-parte applicants, of whom the deceased was the first. Succession proceedings had resulted in administrators being appointed and the certificate of confirmation listed the deceased's shares in the named companies as undistributed estate assets. Since ownership of the shares was not denied and the decree remained unsatisfied, the court saw no reason to refuse the prohibitory orders and further directed disposal of the shares to realize the decretal sum.

p. 2
02

Whether the administrators of the estate, who are not parties to the suit, can be restrained

Holding

The orders were directed at the administrators and the companies notwithstanding their non-joinder; the court did not address the objection expressly but granted the orders sought.

Reasoning

The administrators contended they were strangers to the proceedings and that the application did not seek to join them, yet sought orders against them in their capacity as administrators. They also argued the rule applied only where the share owner is alive. The court did not rule on these objections directly but, finding the shares belonged to the deceased and the decree unpaid, allowed the application as brought, effectively binding the estate's administrators.

p. 2

Legal principles established

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  • Attachment in execution of a decree may attach shares of a deceased judgment debtor standing in the estate's schedule of distribution where the decretal sum remains unpaid.

Court orders

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  1. 1.The application dated 22nd October, 2019 is allowed
  2. 2.Prohibitory orders issued prohibiting the named companies (Centum Investment Company Limited, East Africa Breweries Limited, Rukinga Ranching Company Limited, Voi Development Company Limited, Amaka Development Company Limited, Steers Holding Company Limited and L.C.D.C. Investment Company Limited) from transferring or paying dividends on the shares of Edward Lenjo Musamuli (deceased)
  3. 3.The named companies directed to dispose of the said shares to realize proceeds to settle the sum of Kshs.7,434,045 together with accrued interest at court rates
  4. 4.The applicant awarded the costs of the application

Authorities

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Legislation

  • Civil Procedure RulesOrder 22 Rule 40
  • Community Land Act
Jurisdiction invoked
Order 22 Rule 40 of the Civil Procedure Rules, in execution of a decree for costs issued in this suit on 28th March, 2008

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, "Republic v Commissioner of Lands Chief Land Registrar Ex Parte Edward Lenjo Musamuli & 5 others; Isangawishi Group Ranch(Interested Party) [2020] KEELC 1204 (KLR)", Case Analysis (2020). Not stated in the judgment (application dated 22nd October, 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/1204/eng@2020-09-23

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