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ELCPartially AllowedNot stated in the extract· [2022] KEELC 657 (KLR)

Mercy Nkirote v Lawrence Ngaku Bundi & 2 Others [2022] KEELC 657 (KLR)

Environment and Land Court
23 March 2022
4,206 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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The appellant sued in the lower court for refund of Kshs. 290,000/= and general damages against the 1st respondent, crop damage against the 2nd respondent, and a permanent injunction, over two acres of L.R No. Abothuguchi/Makandune/2035 bought under an agreement dated 12.8.2014 for Kshs. 500,000/=. Her suit was dismissed, and on appeal out of time she attacked the trial court's analysis, findings on fraud and possession. The ELC, on a first appeal under Section 78 of the Civil Procedure Act, framed seven issues. It held the 12.8.2014 sale agreement valid under Section 3(3) of the Law of Contract Act and Section 38 of the Land Act; no parol evidence could vary its clear terms. The appellant breached the agreement by failing to pay the balance of Kshs. 200,000/= by 1.9.2014 and could not unilaterally take vacant possession or develop the land; she was in law a trespasser under the Trespass Act. Though the 1st respondent failed to issue the statutory thirty days' completion notice under Sections 41 and 42 of the Land Act before reselling on 8.11.2014, and had been convicted of cheating in Githongo SRM CR Case No. 1137 of 2017, the 2nd and 3rd respondents were purchasers for value with absolute title registered on 10.11.2016 and bore no liability. The court allowed the appeal in part: the appellant obtained from the 1st respondent only a refund of Kshs. 290,000/= with interest from 8.11.2014 at court rates, while general damages, special damages and the injunction were dismissed. Costs of the appeal and suit were awarded against the 1st respondent.

Key legal issues

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01

Validity of the sale agreement between the appellant and the 1st respondent

Holding

The agreement dated 12.8.2014 was valid in law, complying with Section 3(3) of the Law of Contract Act and Section 38 of the Land Act.

Reasoning

The agreement was duly executed and witnessed, the vendor acknowledged receipt of the deposit, and no party pleaded illegality, coercion or undue influence. The parol evidence rule barred importation of extrinsic evidence to contradict its clear and unambiguous terms, including on who received the purchase monies.

p. 4
02

Whether the appellant took lawful vacant possession

Holding

The appellant breached the agreement by failing to pay the balance by 1.9.2014 and could not lawfully take possession before that date; any entry and development without consent was unlawful.

Reasoning

Under the agreement, possession and utilization of the land were to follow clearance of the balance. The appellant tendered no evidence of demanding extension or seeking to complete. Her unilateral entry rendered her a trespasser under Section 3 of the Trespass Act, Cap 294, defeating claims against the 2nd and 3rd respondents.

p. 4
03

Whether the 1st respondent's resale without notice breached the agreement

Holding

The appellant was entitled to a statutory thirty days' notice which had not been given when the 1st respondent resold on 8.11.2014; his failure to inform the 2nd respondent of the prior sale amounted to cheating, for which he was convicted.

Reasoning

Although the agreement had become voidable for non-compliance, the 1st respondent never issued a completion or rescission notice. The criminal conviction in Githongo SRM CR Case No. 1137 of 2017 under Section 315 of the Penal Code was unchallenged. The only remedy available to the appellant was refund of her deposit under Section 40 of the Land Act.

p. 5
04

Liability of the 2nd and 3rd respondents

Holding

They were not liable; they were purchasers for value who obtained consent, transfer and title, and the appellant was a trespasser on the land.

Reasoning

The 2nd respondent bought the land on 8.11.2014, obtained land control board consent and was registered on 10.11.2016. They were strangers to the appellant's agreement, and there was no proof of collusion, fraud or connivance, nor proof that the 3rd respondent caused the crop damage.

p. 5

Legal principles established

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  • A purchaser who fails to complete payment on the agreed date breaches the contract and cannot unilaterally take vacant possession or develop the land without the vendor's consent.
  • A vendor must issue the statutory thirty days' completion/breach notice under Sections 41 and 42 of the Land Act before rescinding a sale agreement.
  • On a first appeal, the court must rehear, reassess and re-evaluate the lower court record and reach independent conclusions while bearing in mind the trial court's advantage of observing witness demeanour.

Court orders

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  1. 1.Appeal allowed.
  2. 2.The appellant's claim in the lower court against the 1st respondent allowed only in terms of prayer (1) for a refund of Kshs. 290,000/= with interest from 8.11.2014 until payment in full at court rates.
  3. 3.Prayers for general and special damages and permanent injunction against the 1st, 2nd and 3rd respondents dismissed.
  4. 4.Costs of the appeal and the suit to be met by the 1st respondent.

Authorities

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Legislation

  • Civil Procedure ActSection 78
  • Civil Procedure RulesOrder 42 Rule 16
  • Law of Contract ActSection 3(3)
  • Land Act, 2012Sections 38, 39, 40, 41, 42
  • Penal CodeSections 313, 315
  • Trespass Act, Cap 294Section 3

Cases cited (8)

  • Stephen Mutinda Mule & 3 Others –vs- Independent Electoral and Boundaries Commission
    [2014] eKLR
  • Prudential Assurance Company of Kenya Limited –vs- Sukhwinder Singh Jutley & Another
    [2007] eKLR
  • Fidelity Commercial Bank Limited –vs- Kenya Grange Vehicle Industries Limited
    [2017] eKLR
  • Pius Kimaiyo Langat –vs- Co-operative Bank of Kenya Limited
    [2017] eKLR
  • Attorney General of Belize –vs- Belize Telecom Ltd
    [2009] 1 WLR 1980
  • Josephine Nyevu Mwadziwe & Another –vs- Francis Mujumba Aluha & Another
    [2022] eKLR
  • J.T.M. Construction & Equipment Ltd –vs- Circle B. Farms Ltd
    Claim Number 2007 Hcr 05110
  • Housing Company of East Africa Ltd & 2 Others –vs- Board of Trustees of NSSF & Another
    [2018] eKLR
On appeal from
Chief Magistrate's Court (Tigania Law Courts)
Not stated in the extract
Jurisdiction invoked
First appeal under Section 78 of the Civil Procedure 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, "Mercy Nkirote v Lawrence Ngaku Bundi & 2 Others [2022] KEELC 657 (KLR)", Case Analysis (2022). Not stated in the extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/657/eng@2022-03-23

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