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ELCPartially AllowedNot stated in the judgment· [2022] KEELC 984 (KLR)

Margaret Makai v Julius Kilonzo Maweu; Feliz Maithya Nduota (Interested Party) [2022] KEELC 984 (KLR)

Environment and Land Court
9 March 2022
5,621 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~22 min to read original · ~4 min brief

The bottom line

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The court cancelled a land title obtained after a sale was rescinded, but still made the seller's estate pay the outstanding purchase debt with interest.

What this practically means

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Executive summary

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The Plaintiff, administrator of the estate of her late father Makai Kaluti Ndunda, sued to restrain the Defendant from dealing with land parcel Konza North/Konza North Block 2 (Malili) 1934, to cancel his title and to have the register rectified in her name. Her case was that the father sold the plot to the Defendant in November 2011 but, on discovering the land was not vacant (it had earlier been sold to Felix Maithya Nduota), the parties mutually rescinded the sale and executed a refund agreement on 14/11/2011, under which Kshs 1,399,950/- was refunded, leaving Kshs 970,000/- payable by 23/11/2011 with 10% monthly interest in default. She alleged the Defendant, a director of Malili Ranch Company Limited, fraudulently and secretly transferred the land to himself; registration occurred on 24/5/2017, long after the rescission. The Defendant counterclaimed that the Plaintiff, as administrator, was bound by the refund agreement and should pay the balance of Kshs 9,312,000/- plus interest, or alternatively be declared owner. The court held the refund agreement binding on the administrator, who is obliged under Section 83(d) of the Law of Succession Act to pay the estate's debts, and that the Plaintiff breached clauses (b) and (c). Fraud was not strictly proved as alleged, but the registration after rescission meant the title was obtained illegally, unprocedurally or through a corrupt scheme and was impeached under Section 26(1)(b) of the Land Registration Act. The Plaintiff's suit succeeded; the Defendant's counterclaim partially succeeded, with an award of Kshs 6,499,000/-. Each party to bear its own costs. Judgment delivered virtually on 9th March 2022 by Hon T. Murigi, Judge.

Key legal issues

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01

Whether the refund agreement dated 14/11/2011 binds the Plaintiff as administrator

Holding

Yes; as administrator she is duty bound to pay the deceased's debts, and the agreement is binding and enforceable between the Plaintiff and the Defendant

Reasoning

The parties mutually rescinded the sale agreement by executing the refund agreement. The outstanding balance of Kshs 970,000 was a debt of the estate. Section 83(d) of the Law of Succession Act obliges a personal representative to ascertain and pay all debts of the deceased. Having confirmed the grant, the Plaintiff cannot avoid the obligation the deceased assumed.

p. 4
02

Whether the Defendant's title was fraudulently or illegally procured

Holding

Yes; the title was impeached under Section 26(1)(b) of the Land Registration Act and cancelled with rectification of the register

Reasoning

The parties had rescinded the sale agreement before registration, and the letter of allotment (root of title) was to be held by an advocate until the refund was complete. Registration on 24/5/2017 occurred long after rescission, with no evidence of who presented or what documents facilitated the transfer. The title was therefore obtained illegally, unprocedurally or through a corrupt scheme.

p. 6
03

Whether the Defendant is entitled to the balance of the purchase price with interest

Holding

Partially; Kshs 6,499,000/- awarded as the balance plus 10% monthly interest from 24/11/2011 to 24/5/2017

Reasoning

The Plaintiff admitted the outstanding balance was never paid, breaching clauses (b) and (c) of the refund agreement. The court cannot rewrite the contract to waive the agreed interest; no fraud, coercion or undue influence in the agreement was pleaded or proved. Interest computed over 67 months brought the total to Kshs 6,499,000.

p. 7

Legal principles established

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  • A court cannot rewrite a contract between parties; parties are bound by the terms of their contracts unless coercion, fraud or undue influence are pleaded and proved.
  • Allegations of fraud must be strictly proved; more than a mere balance of probabilities is required.
  • A title acquired illegally, unprocedurally or through a corrupt scheme is impeachable under Section 26(1)(b) of the Land Registration Act and the register may be rectified under Section 80(1).
  • A legal administrator is bound to pay the debts of the deceased estate.

Court orders

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  1. 1.An order cancelling the Defendant's title in Land Parcel No. Konza North/Konza North Block 2 (Malili) 1944 [as printed; elsewhere 1934]
  2. 2.An order directing the Machakos County Land Registrar to rectify the Register to reflect the name of Margaret Makai as the registered owner of Konza North/Konza North Block 2 (Malili) 1934
  3. 3.A declaration that the Plaintiff, being the Legal Administrator of the Estate of the late Makai Kaluti Ndunda, is bound by the agreement dated 14/11/2011
  4. 4.A declaration that the deceased and now the Plaintiff breached clauses b and c of the agreement dated 14/11/2011
  5. 5.An order that the Plaintiff pay the Defendant Kshs 6,499,000/- being the balance of the purchase price
  6. 6.Each party to bear its own costs

Authorities

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Legislation

  • Law of Succession ActSection 83(d)
  • Land Registration ActSection 26(1)(b)
  • Land Registration ActSection 80(1) and (2)

Cases cited (10)

  • Alice Chemutai Too Vs Nickson Kipkirui Korir and 2 Others
    (2015) eKLR
  • Zachariah Wambugu Gathimu & Another Vs John Ndungu Maina
    (2019) eKLR
  • Kalondu Kyambo (Suing in her capacity as the Legal Representative of the Estate of Kyambo Ngata (Deceased) Vs Peter Wanjohi Kamau (Sued as the Liquidator of Drumville Farmers’ Co-operative Society Limited & Another, Bernard Mutinda Matheka (Applicant); Albert Athans Makau Kyambo (interested party)
    (2021) eKLR
  • Esther Wanjiku Machatha Vs Timothy Njenga Gitura & 4 Others
    (2015) eKLR
  • Feba Radio (Kenya) Limited t/a Feba Radio Vs Ikiyu Enterprises Limited
    (2017) eKLR
  • Five Forty Aviation Limited Vs Erwin Lanoe
    (2019) eKLR
  • Pius Kimaiyo Langat Vs Co-operative Bank of Kenya Ltd
    (2017) eKLR
  • R.G Patel vs Lalji Makanji
    (1957) EA 314
  • Urmilla w/o Mahendra Shah Vs Barclays Bank International Limited & Another
    (1979) KLR 78
  • National Bank of Kenya Limited Vs Pipe Plastic Sankolit (K) Ltd
    Civil Appeal No 95 of 1999
Jurisdiction invoked
Original civil jurisdiction of the High Court/Environment and Land Court over land claims (no specific provision cited in the judgment)

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, "Margaret Makai v Julius Kilonzo Maweu; Feliz Maithya Nduota (Interested Party) [2022] KEELC 984 (KLR)", Case Analysis (2022). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/984/eng@2022-03-09

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