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ELCPartially AllowedNot stated in the judgment as provided· [2020] KEELC 3324 (KLR)

Isaac Macharia Ngarange v Malili Ranch Limited & another [2020] KEELC 3324 (KLR)

Environment and Land Court
6 March 2020
3,312 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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The Plaintiff sued for specific performance of an agreement dated 29th April 2011 in which he purchased Plot No. 1830 at Malili Ranch from the 2nd Defendant for Kshs. 3,200,000, plus a permanent injunction, alternative refunds, and general damages. He claimed he conducted searches at the 1st Defendant's (Malili Ranch Limited) offices confirming the 2nd Defendant as owner and paid transfer fees of Kshs. 20,000 to the 1st Defendant. The 1st Defendant denied the searches and alleged the 2nd Defendant used forged documents; the 2nd Defendant did not enter appearance. Evidence established that the initial allottee, John Njenga Ngethe, never sold the land to the 2nd Defendant, who was convicted in Machakos Criminal Case No. 1761 of 2011 for making a false document. The court held that the 2nd Defendant had no title to pass, and that John Njenga Ngethe, still holding an interest in the property, was a necessary party whose absence made specific performance unjust. However, the purchase price of Kshs. 3,200,000 was refundable by the 2nd Defendant, and the transfer fees of Kshs. 20,000 were refundable by the 1st Defendant, its Director having admitted its Treasurer issued the receipt. The court partially allowed the Plaint, ordering refunds with interest at court rates from the date of filing and joint and several costs against the Defendants. Judgment delivered at Machakos on 6th March 2020 by O.A. Angote J.

Key legal issues

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01

Whether the 2nd Defendant had title to pass to the Plaintiff

Holding

The 2nd Defendant had no title to the suit land, having forged the documents purporting to show purchase from the initial allottee John Njenga Ngethe; therefore no title passed to the Plaintiff

Reasoning

The criminal court in Machakos Criminal Case No. 1761 of 2011 convicted the 2nd Defendant of making a false document and found the land belonged to John Njenga Ngethe, who denied selling it. The 2nd Defendant entered no appearance and adduced no evidence to contradict this. Since one can only pass a good title, the Plaintiff acquired nothing.

p. 4
02

Whether specific performance should be granted

Holding

Specific performance was refused because the initial allottee, who still has an interest in the property, was not joined as a party

Reasoning

The Plaintiff's claim was to have the suit property registered in his favour. John Njenga Ngethe, the initial allottee who disowned the sale to the 2nd Defendant, was a necessary party. Without his joinder the court could not hear his side on whether he ever sold the land, making specific performance unjust.

p. 4
03

Whether the 1st Defendant was liable to refund the transfer fees

Holding

The 1st Defendant was ordered to refund Kshs. 20,000 paid to it for transfer, since its own Director admitted its Treasurer issued the receipt

Reasoning

Although the 1st Defendant denied receiving money, its Director admitted in evidence that the Treasurer issued a receipt of Kshs. 20,000. The court held the amount was refundable by the 1st Defendant whether paid by the Plaintiff or the 2nd Defendant.

p. 4

Legal principles established

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  • One can only pass a good title; a vendor without title cannot convey title to a purchaser
  • A person with an interest in the suit property, such as the initial allottee disputing the sale, is a necessary party without whose joinder specific performance cannot be granted

Court orders

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  1. 1.The 2nd Defendant to refund to the Plaintiff Kshs. 3,200,000 being the money that the 2nd Defendant was paid for Plot No. 1830 situate at Malili Ranch Limited
  2. 2.The 1st Defendant to refund to the Plaintiff Kshs. 20,000 being the amount that was paid to the 1st Defendant for the transfer of Plot Number 1830 situate in Malili Ranch Limited
  3. 3.Interest on the above amounts at court rates from the date of filing of the suit until payment in full
  4. 4.The Defendants to pay the costs of the suit jointly and severally

Authorities

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Legislation

  • Penal CodeSection 357(c)

Cases cited (1)

  • Republic vs. Industrial Injuries Commissioner Ex-parte AEU
    (1966) 2QB 31
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over a land sale dispute

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, "Isaac Macharia Ngarange v Malili Ranch Limited & another [2020] KEELC 3324 (KLR)", Case Analysis (2020). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/3324/eng@2020-03-06

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