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ELCAllowedELC Case No. 207 of 2015· [2020] KEELC 2914 (KLR)

Rambart Miheso Ifedha v Rosemary Brenda Mutende & 2 others [2020] KEELC 2914 (KLR)

Environment and Land Court
6 May 2020
1,981 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~8 min to read original · ~4 min brief

The bottom line

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A Kenyan court cancelled a fraudulent land resale and ordered the original seller to complete the sale, proving that paid-for land in your possession is legally yours.

What this practically means

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Executive summary

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The plaintiff sued the 1st defendant over a sale agreement dated 7th September 2002 for purchase of Block IV/9 Kakamega Municipality for Kshs. 450,000/=. He alleged he paid the full price and took possession in 2002, but in 2015 the 1st defendant fraudulently sold and transferred the same land to the 2nd defendant. He sought revocation of the transfer to the 2nd defendant, specific performance, a permanent injunction, alternatively a refund at market rates or a declaration of adverse possession. The 1st defendant admitted receiving only Kshs. 250,000/= and claimed the balance of Kshs. 200,000/= was to be paid as school fees for her daughter in the USA; she offered to refund. The 2nd defendant claimed to be an innocent purchaser for value at Kshs. 6 million. The court found the agreement complied with Section 3(3) of the Contract Act and was valid and enforceable. It found as fact that the full purchase price was paid, as acknowledged in writing by the 1st defendant's late husband, and that the 1st defendant's willingness to refund Kshs. 1.5 million contradicted her claim of partial payment. The court held the 1st defendant breached the contract and acted fraudulently and dishonestly in reselling the land, which was not available for sale having been sold and possessed by the plaintiff since 2002. The plaintiff's case was proved on a balance of probabilities. The court ordered revocation of the transfer to the 2nd defendant within 90 days, specific performance by the 1st defendant (with the Deputy Registrar empowered to execute documents in default), a permanent injunction protecting the plaintiff's possession, and costs to the plaintiff. Alternative reliefs of refund and adverse possession were not pursued in light of the primary orders.

Key legal issues

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01

Validity of the land sale agreement

Holding

The sale agreement satisfied Section 3(3) of the Contract Act and was a valid, enforceable contract

Reasoning

Section 3(3) of the Contract Act requires a contract for disposition of an interest in land to be in writing, signed by all parties and attested by a witness. The court perused the agreement (PEx1), found it in writing and signed by the parties, containing the parties' names, property description, purchase price and conditions, and therefore valid and enforceable.

p. 2
02

Whether the plaintiff breached the contract by failing to pay the balance

Holding

The plaintiff paid the full purchase price of Kshs. 450,000/= as acknowledged by the 1st defendant's late husband; there was no breach by the plaintiff

Reasoning

The agreement itself recorded payment in full by the date of signing. PEx2 acknowledged receipt of the full purchase price. The 1st defendant's willingness to refund Kshs. 1.5 million undermined her claim that only Kshs. 250,000/= was paid. There was no evidence the balance was to be paid as school fees in the USA.

03

Fraudulent resale to the 2nd defendant

Holding

The 1st defendant fraudulently sold the already-sold property to the 2nd defendant in 2015

Reasoning

The property had been sold to the plaintiff in 2002 and he had taken possession and connected water. The 1st defendant sold the same land to the 2nd defendant for Kshs. 6 million in 2015. The court found her greedy and dishonest; at the time of resale the property was not available for sale.

p. 2

Legal principles established

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  • A sale agreement for land in writing, signed by the parties, containing parties' names, property description, purchase price and conditions constitutes a valid enforceable contract
  • A seller who resells land already sold and in the buyer's possession acts fraudulently

Court orders

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  1. 1.Revocation of the purported transfer of the lease to the 2nd defendant in respect of Block IV/9 Kakamega Municipality within 90 days
  2. 2.An order compelling the 1st defendant to complete the sale contract with the plaintiff, execute all transfer documents, and in default the Deputy Registrar to do so
  3. 3.A permanent injunction restraining the defendants from selling, disposing of, transferring, charging, pledging, leasing, wasting or interfering with the plaintiff's possession and quiet enjoyment of Block IV/9 Kakamega Municipality
  4. 4.Costs of the suit to the plaintiff

Authorities

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Legislation

  • Contract ActSection 3(3)
  • Auctioneers ActCap. 526

Cases cited (3)

  • Nelson Kivuvani Vs Yuda Komora & Another
    Nairobi HCCC No. 956 of 1991
  • Shah -vs- Guilders International Bank Ltd
    (2003) KLR
  • National Bank of Kenya Ltd Vs Pipeplastic Samkolit (K) Ltd & Another
    Civil Appeal No. 95 of 1999 (2001) KLR 112 (2002) EA 503
Jurisdiction invoked
Environment and Land Court jurisdiction (Environment and Land Court Act)

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, "Rambart Miheso Ifedha v Rosemary Brenda Mutende & 2 others [2020] KEELC 2914 (KLR)", Case Analysis (2020). ELC Case No. 207 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/2914/eng@2020-05-06

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