Davis Nathan Chelogoi v Noah Mahalang’ang’a Wekesa [2020] KEELC 3685 (KLR)
The bottom line
#A Kenyan land seller who helped create a forged, inflated sale agreement to secure a bigger loan lost his entire claim for payment.
What this practically means
#Executive summary
#Key legal issues
#Whether the purchase price was Kshs. 6,000,000/= or Kshs. 12,000,000/=
The valid agreement was the one dated 10th September 2009 for Kshs. 6,000,000/=; the Kshs. 12,000,000/= agreement was a forgery created by the defendant with the plaintiff's knowledge to deceive the P.S.C.
The defendant admitted in a sworn affidavit that he created the Kshs. 12,000,000/= agreement to obtain a bigger loan. DW1 confirmed the page 2 alteration. The plaintiff's own letters to his advocates confirmed he signed the Kshs. 6,000,000/= agreement and knew of the forged one. The court found the plaintiff had not told the truth.
Whether the defendant breached the agreement for sale
No breach; the full agreed purchase price of Kshs. 6,000,000/= was paid.
The deposit of Kshs. 200,000/= and balance of Kshs. 5,800,000/= were paid, totalling the agreed price. The plaintiff confused the loan amount of Kshs. 11,800,000/= with the purchase price.
Whether the plaintiff was entitled to rescission for fraudulently obtained consents
No; the burden lay on the plaintiff to prove the defendant obtained the consents fraudulently, which he failed to discharge.
Clause 4 of the agreement placed the obligation to obtain Land Control Board consent on the plaintiff. Both the defendant and DW1 testified that the plaintiff obtained the consents. Any fraud would therefore be attributable to the plaintiff himself.
Legal principles established
#- A party who participates in creating a fraudulent or inflated document to obtain a loan, or signs blank transfer instruments to further a dishonourable bargain, does so at his own risk and cannot enforce the collateral arrangement.
- Costs follow the event, but the court may deny a successful party costs to express disapproval of fraudulent conduct in the transaction.
Court orders
#- 1.The plaintiff's suit is dismissed.
- 2.Each party to bear his own costs.
- Jurisdiction invoked
- Original civil suit (contract/land sale dispute); no constitutional or statutory jurisdictional provision stated in the judgment
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Davis Nathan Chelogoi v Noah Mahalang’ang’a Wekesa [2020] KEELC 3685 (KLR)", Case Analysis (2020). (not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/3685/eng@2020-02-06
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.