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ELCDismissedNot stated in the judgment as provided· [2022] KEELC 830 (KLR)

Mohammed Feisal Mohamud & 2 others v Richard Guya Membo & 5 others [2022] KEELC 830 (KLR)

Environment and Land Court
11 March 2022
6,589 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~26 min to read original · ~4 min brief

The bottom line

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The Kisumu Environment and Land Court dismissed tenants' bid to claim land ownership, warning that fraud allegations must be specifically proved, not merely inferred.

What this practically means

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Executive summary

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The plaintiffs, tenants who had leased and extensively improved land parcels KISUMU/MUNICIPALITY/BLOCK 7/275 and 276, sued for declarations that the parcels belonged to them, that the transfer to the 1st Defendant was fraudulent, and for a permanent injunction. The 1st and 3rd Defendants counter-claimed for vacant possession and mesne profits, having bought the property from the 4th-6th Defendants (the Haji family) under an agreement of 11/3/2016 and having been registered on 22/3/2016. The court held the 11/3/2016 sale agreement complied with Section 3(3) of the Law of Contract Act and was legal and binding. The plaintiffs' later agreement of 29/3/2016 and the vendors' purported revocation of the first agreement were nullities, since by then the vendors had ceased to be proprietors and the 1st Defendant was not party to the revocation. Although the property was registered in the name of the 3rd Defendant - a company which was not party to the sale agreement and whose registration the Land Registrar admitted departed from the transfer instrument - the court found no proved fraud: the 1st Defendant, as beneficiary, had instructed the registration, and fraud must be distinctly pleaded and proved to a standard higher than balance of probabilities. The plaintiffs, having only a lease tenancy and no proprietary interest, had no cause of action. The suit was dismissed with costs. On the counter-claim, the court awarded the 1st and 3rd Defendants jointly mesne profits of Kshs. 680,000 per month from April 2016 until payment, ordered the plaintiffs to deliver vacant possession within 60 days, and awarded the defendants costs.

Key legal issues

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01

Validity of the 11/3/2016 sale agreement between the 1st Defendant and the 4th-6th Defendants

Holding

The agreement was legal and binding, complying with Section 3(3) of the Law of Contract Act

Reasoning

The sale agreement was in writing, signed by all parties, and the signatures were attested by an advocate of the High Court of Kenya, satisfying the statutory requirements for contracts for the disposition of an interest in land. The plaintiffs, being strangers to that agreement, cannot complain of any breach of it.

p. 6
02

Whether the plaintiffs' 29/3/2016 agreement and the revocation deed conferred title on the plaintiffs

Holding

Both were nullities; the vendors had ceased to be proprietors and the 1st Defendant was not party to the revocation

Reasoning

By 29/3/2016 the property had already been transferred and registered in favour of the 3rd Defendant, so the 4th-6th Defendants had no capacity to revoke or re-sell. A revocation deed binds only the parties to it and cannot affect third parties such as the 1st Defendant, who was not involved.

p. 6
03

Whether the registration of the 3rd Defendant rather than the 1st Defendant was fraudulent

Holding

Not fraudulent; the registration followed the instructions of the 1st Defendant as beneficiary of the transfer, and fraud was not distinctly proved

Reasoning

The 1st Defendant, as transferee and beneficiary, instructed the Land Registrar to register the property in the name of the 3rd Defendant. Although the Land Registrar acted against known practice, the plaintiffs - mere tenants and strangers to the 11/3/2016 agreement - lack standing to complain, and the fraud standard of proof was not met.

p. 10
04

Counter-claim for mesne profits and vacant possession

Holding

Awarded; mesne profits of Kshs. 680,000 per month from April 2016 and vacant possession within 60 days

Reasoning

The plaintiffs have been in occupation earning income from the property since the defendants' title was registered. The court adopted the plaintiffs' own admitted income figure of Kshs. 680,000 per month rather than the valuation report figure of Kshs. 720,000, computing mesne profits from April 2016 until payment.

p. 11

Legal principles established

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  • A revocation of a sale agreement by vendors who have ceased to be proprietors of the property, and to which the purchaser was not a party, does not bind the purchaser or third parties
  • Fraud must be specifically pleaded and distinctly proved to a standard higher than a balance of probabilities; it cannot be inferred from the facts
  • A court will decline to invalidate a registration where doing so would merely act in vain, the transaction itself having been for valuable consideration and properly documented

Court orders

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  1. 1.The plaintiffs' suit is dismissed with costs
  2. 2.Mesne profits of Kshs. 680,000 per month awarded to the 1st and 3rd Defendants jointly from April 2016 until payment
  3. 3.Order for vacant possession of land parcels Block 7/275 and 276 granted to the 1st and 3rd Defendants
  4. 4.Plaintiffs to vacate within 60 days
  5. 5.Costs of the suit and counter-claim granted to the defendants

Authorities

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Legislation

  • Law of Contract Act (Cap 23)Section 3(3)
  • Land Registration ActSection 26
  • Law of Evidence Act (Cap 80)Section 107
  • Constitution of KenyaArticle 159

Cases cited (5)

  • Central Bank of Kenya Ltd v Trust Bank Ltd & 4 Others
    Civil Appeal No. 45 of 1996
  • Paragon Finance PLC v D B Thakerar & Co
    [1999] 1 All ER 400
  • Vijay Morjaria v Nansingh Madhusingh Darbar & another
    [2000] eKLR
  • Kinyanjui Kamau v George Kamau Njoroge
    [2015] eKLR
  • Ndolo v Ndolo
    (2008) 1 KLR (G&F) 742
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over disputes relating to land parcels KISUMU/MUNICIPALITY/BLOCK 7/275 and 276

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, "Mohammed Feisal Mohamud & 2 others v Richard Guya Membo & 5 others [2022] KEELC 830 (KLR)", Case Analysis (2022). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/830/eng@2022-03-11

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