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ELCStruck OutNot stated in judgment (Notice of Motion dated 22nd March 2021)· [2022] KEELC 183 (KLR)

Mayungu Real Estates Limited v Azzurri Limited & 4 others [2022] KEELC 183 (KLR)

Environment and Land Court
28 April 2022
5,038 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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Mayungu Real Estates Limited, claiming to be the registered proprietor of Title No. Chembe/Kibabamshe/251 since 1999, moved the court by Notice of Motion dated 22nd March 2021 seeking an order of inhibition and an interim injunction restraining Azzurri Limited from dealing with the suit property and its subdivisions, on the ground that its title had been cancelled and expunged in 2015 without due process and re-issued to Azzurri Limited. Azzurri Limited filed a preliminary objection contending that the suit was instituted without proper board authority, offended Section 80(2) of the Land Registration Act, was time-barred and offended Article 67(2) of the Constitution read with the National Land Commission Act, and that the Plaintiff was guilty of laches. The court reduced the objection to three issues. It rejected the authority objection, holding that no board resolution is required where a director swears the affidavits and nothing shows lack of authority. It rejected the Section 80(2) objection, noting that provision governs rectification and cannot dispose of the suit at that stage. It upheld the third limb: the Plaintiff had participated in National Land Commission proceedings which determined its title to be illegal/irregular, gazetted in Legal Notice No. 6866 of 17th July 2017, and failed to appeal within the fourteen days allowed by Rule 30. Filing a fresh suit four years later to side-step that determination was an abuse of process. Both the suit and the Motion were struck out with costs to the 1st Defendant.

Key legal issues

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01

Whether the suit was validly instituted without a board resolution / by a minority director

Holding

The objection failed; no hard and fast rule requires a prior resolution and nothing showed the Director lacked authority

Reasoning

The court relied on Arthi Highway Developers, noting the Bugerere Coffee Growers position had been overruled. Mehboob Hasham Ahmed described himself as a member and Director and swore the verifying and supporting affidavits; nothing was placed before the court demonstrating lack of authority. The 1st Defendant's contentions about bearer shares required ascertainment of fact and could not ground a preliminary objection.

p. 4
02

Whether the suit offended Section 80(2) of the Land Registration Act

Holding

The objection failed; the provision is not a bar to a suit seeking rectification but a rule governing rectification

Reasoning

Section 80 of the Land Registration Act reproduces Section 143 of the repealed Registered Land Act. Under the new dispensation it no longer matters whether the court deals with a first registration. Since both parties claimed title to the same property at one point, the court could not at the interlocutory stage conclude that the suit offended Section 80(2).

p. 5
03

Whether the suit offended Article 67(2) of the Constitution and Rule 30 of the NLC (Review of Grants and Dispositions of Public Land) Regulations, 2017

Holding

It did; the Plaintiff failed to appeal the Commission's Gazetted determination within 14 days and the suit was an abuse of process

Reasoning

The Commission, established under Article 67 of the Constitution, exercised quasi-judicial powers under Section 14 of the NLC Act and made a determination that the Plaintiff's title was illegal/irregular, published by Legal Notice No. 6866 on 17th July 2017. The Plaintiff, aware of the determination, never appealed within the stipulated time but filed a fresh suit four years later seeking to side-step the decision by suing government agencies instead. The suit and Motion were struck out with costs.

p. 7

Legal principles established

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  • A preliminary objection must raise a pure point of law and cannot succeed where facts require ascertainment or judicial discretion is sought
  • There is no hard and fast rule requiring a board resolution before a company institutes suit; a director authorized to act has the powers of the board
  • A party aggrieved by a decision of the National Land Commission under its review jurisdiction must appeal within fourteen days as provided by Rule 30 and cannot later reopen the matter by a fresh suit
  • Statutory bodies exercising constitutional mandates should be allowed to discharge their functions and their decisions challenged only in the manner provided by law

Court orders

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  1. 1.The suit and the Notice of Motion dated 22nd March, 2021 are struck out
  2. 2.Costs of the application awarded to the 1st Defendant

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 67(2), Articles 47 and 50
  • Land Registration Act No. 3 of 2012Section 80(2)
  • National Land Commission Act No. 5 of 2012Section 5, Section 14, Section 14(7), Section 19, Fourth Schedule
  • National Land Commission (Historical Land Injustices) Rules, 2016Rule 30
  • National Land Commission (Review of Grants and Dispositions of Public Land) Regulations, 2017Rule 30
  • Registered Land Act (Cap. 300) (repealed)Section 143

Cases cited (7)

  • Mukisa Biscuit Manufacturing Company Limited -vs- West End Distributors Limited
    (1969) EA 696
  • Arthi Highway Developers Limited -vs- West End Butchery Limited and 6 Others
    (2015) eKLR
  • Bugerere Coffee Growers Limited -vs- Sebaduka & Another
    (1970) 1 EA 147
  • Tatu Naiga & Emporium -vs- Virjee Brothers Limited
    Civil Appeal No. 8 of 2000
  • United Assurance Company Limited -vs- Attorney General
    SCCA No. 1 of 1998
  • Fubeco China Frushum -vs- Naiposha Company Limited & 11 Others
    (2014) eKLR
  • Diana Kethi Kilonzo -vs- Independent Electoral and Boundaries Commission and 2 Others
    (2014) eKLR
Jurisdiction invoked
Article 162(2)(b) of the Constitution (Environment and Land Court) - implied from the court's jurisdiction over land title rectification; no express provision stated in the ruling

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, "Mayungu Real Estates Limited v Azzurri Limited & 4 others [2022] KEELC 183 (KLR)", Case Analysis (2022). Not stated in judgment (Notice of Motion dated 22nd March 2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/183/eng@2022-04-28

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