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ELCDismissedNot stated in the judgment as provided· [2020] KEELC 2047 (KLR)

Getrude Nafula Tsuma v Jemimah Wanjiku [2020] KEELC 2047 (KLR)

Environment and Land Court
20 May 2020
4,112 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled a landowner couldn't evict a buyer, declaring she held the plot's title in trust because her earlier attempt to cancel the original sale was invalid.

What this practically means

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Executive summary

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The plaintiff sued for eviction of the defendant from a 50 by 100 feet plot within LR 6670 IR 3112, alleging trespass from December 2012. The defendant admitted possession but claimed as a bona fide purchaser: she bought the first plot directly from the plaintiff, and the disputed second plot from the Agola family in 2009 after the plaintiff's attempted resale of the plot already sold to the Agolas under an agreement dated 24/8/1992. By counterclaim she sought a declaration that the plaintiff holds the plot in trust for her and an order compelling subdivision and transfer. The court framed five issues. It found that the 1992 agreement was valid and binding; the plaintiff's purported rescission was unilateral, without notice making time of the essence, and unsupported by proof of refund of the full purchase price, drawing on Aida Nunes v Njonjo and Bir Singh v Parmar. The plaintiff's attempted resale while the plot belonged to the Agolas was corroborated, including by her arrest over the double sale. The Agolas validly sold the plot to the defendant in 2009. A constructive trust was found to arise in the plaintiff over the plot, she retaining bare title to fully-paid land sold on to the defendant. The plaintiff's suit was dismissed with costs and the counterclaim allowed: the court declared the trust, determined it, ordered the plaintiff to execute subdivision and transfer documents (with the Deputy Registrar to execute in default), and awarded the defendant the costs of the counterclaim. Judgment was delivered at Nairobi via teleconference on 20 May 2020.

Key legal issues

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01

Whether the 24/8/1992 agreement between the plaintiff and the Agola family was effectively rescinded

Holding

No effective rescission occurred; the purported rescission was unilateral, without notice, and unsupported by proof of refund of the full purchase price

Reasoning

The plaintiff admitted the agreement and receipt of the full purchase price. The alleged rescission was unilateral: no notice of rescission for breach was served, time was not of the essence, the alleged refund was never accepted by the proper party (Mrs Agola), and only Ksh 20,000 of Ksh 40,000 was ever said to be refunded. Under the authorities cited, delay could not found rescission absent notice making time of the essence.

p. 4
02

Whether the Agolas had capacity to sell the plot to the defendant and whether the 7/2/2009 agreement was valid

Holding

Yes; the Agolas had a subsisting interest in the land capable of sale, and the sale bound the parties

Reasoning

Since the 1992 agreement was never validly rescinded and the purchase price was fully paid, the Agolas retained an enforceable interest in the plot. No complaint was raised by Mrs Belice Agola about the 2009 sale to the defendant, which was attested by an advocate and signed by the vendor.

p. 4
03

Whether a constructive trust arose in favour of the defendant

Holding

A constructive trust arose because the plaintiff retained legal title to land fully sold, possessed and on-sold by the entitled parties

Reasoning

The plaintiff admitted receiving the full purchase price and that the purchasers were to take possession on execution, which they did. The plot was validly sold on to the defendant, yet title remained in the plaintiff's name. It would be unconscionable for her to retain the title; she therefore holds it in constructive trust for the defendant.

p. 4

Legal principles established

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  • Where time is not made of the essence of a land sale contract, a party cannot rescind for delay without notice making time of the essence
  • A vendor cannot unilaterally rescind a land sale agreement for non-payment of a deposit where time was not of the essence and no notice was given

Court orders

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  1. 1.The plaintiff's claim in the main suit is dismissed with costs
  2. 2.The defendant's counterclaim is allowed
  3. 3.An order that the plaintiff is holding the title to the plot measuring 50 by 100 feet within LR 6670 occupied by the defendant in trust for the defendant
  4. 4.The trust is determined and the plaintiff is ordered to sign all necessary documents to effect subdivision of LR 6670 and transfer of the portion occupied by the defendant to her, in default of which the Deputy Registrar shall execute such documents
  5. 5.The plaintiff shall bear the costs of the counterclaim

Authorities

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Legislation

  • Limitation of Actions Actsection 7

Cases cited (2)

  • Aida Nunes vs J.M.N Njonjo & C. Kigwe
    (1962) EA page 89
  • Bir Singh v Parmar
    (1972) EA page 212
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over land disputes

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, "Getrude Nafula Tsuma v Jemimah Wanjiku [2020] KEELC 2047 (KLR)", Case Analysis (2020). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/2047/eng@2020-05-20

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