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ELCPartially AllowedNot stated in judgment· [2022] KEELC 1207 (KLR)

Joseph Kabugi Karanja v Benson Mugo Mukunya & 3 others; Samuel Magana Muigai & 2 others (Intended Interested Parties) [2022] KEELC 1207 (KLR)

Environment and Land Court
23 February 2022
2,652 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court joined two land purchasers to a case but refused to undo orders based on an earlier consent judgment, telling them to file a fresh suit.

What this practically means

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Executive summary

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Before the Environment and Land Court at Nairobi were two applications dated 15th November 2021 arising from a ruling delivered on 10th November 2021 that nullified and revoked transfers of parcels excised from Loc. 16/Kimandi-Wanyaga/775 in enforcement of a consent judgment recorded on 20th May 2019. The 1st interested party, a purchaser of parcel 1261, sought stay and review of the orders so that parcel 1263 would be transferred to Joseph Kabugi Karanja. The 2nd and 3rd intended interested parties, registered proprietors of parcel 1263 who bought from Thika Credit Traders Limited with financing from Unaitas Sacco, sought joinder, leave to lift the corporate veil, stay of execution, preservation of status quo, a permanent injunction, and review and setting aside of the ruling. The plaintiff opposed, contending that the consent judgment subsisted when the land was sold, rendering the transactions null and void, and that fraud grounds for setting aside a consent judgment were not met. The court joined the 2nd and 3rd interested parties, holding they are registered owners of a resultant parcel and contempt proceedings are underway. However, it held that the ruling effectuated a consent judgment settable aside only on proven fraud, which was not established, and that post-consent transactions in defiance of the consent generated new causes of action that cannot be pursued in concluded proceedings at execution stage. Execution could not be halted as the plaintiff had taken possession and erected permanent structures. All prayers other than joinder were dismissed with each party bearing their own costs.

Key legal issues

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01

Joinder of interested parties

Holding

Joinder of the 2nd and 3rd interested parties allowed since they are registered proprietors of a resultant parcel and contempt proceedings are underway

Reasoning

The court noted the parcels 1261 and 1263 are part of the three resultant parcels from parcel 775, the subject of the consent order. With execution and contempt proceedings ongoing, the registered owners of the resultant parcels were properly joined to assert their claims.

p. 4
02

Review/setting aside of the ruling of 10th November 2021

Holding

Refused; the ruling effectuated a consent judgment settable aside only on proven fraud

Reasoning

The consent order of 4th December 2018, recorded on 20th May 2019, preceded the interested parties' purchases. The consent bound the parties and could only be disturbed on proven fraud, which the interested parties did not demonstrate. Their claims arising from post-consent transactions constituted new causes of action.

p. 4
03

Stay of execution

Holding

Refused as execution was already complete or underway

Reasoning

The plaintiff had taken possession, fenced the land and built permanent structures, corroborated by photographs and confirmed by the 2nd interested party. There was therefore nothing capable of being stayed at the execution stage.

p. 4

Legal principles established

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  • A consent order is binding on all parties and can only be set aside on grounds of fraud, illegality, or absence of sufficient material facts
  • Transactions undertaken in defiance of a subsisting consent order generate new causes of action which cannot be litigated in the concluded proceedings

Court orders

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  1. 1.The 2nd and 3rd interested parties are joined to the proceedings
  2. 2.All the other prayers sought in the two applications are dismissed
  3. 3.Each party is to bear their own costs of the applications

Authorities

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Legislation

  • Civil Procedure ActSection 80
  • Civil Procedure RulesOrder 45(1)
  • Civil Procedure RulesOrder 42 Rule 6

Cases cited (12)

  • Broke Bond Liebig vs (T) Ltd Mallya
    (1975) EA 266
  • Samuel Amugune & 4 others v Attorney General
    [2018] eKLR
  • Muyodi v Industrial & Commercial Development Corporation & Another
    (2006) 1 EA 243
  • Sammy Maina v Stephen Muriuki
    [1984] eKLR
  • Lucy Nungari Ngigi & 128 others v National Bank of Kenya Limited & another
    [2015] eKLR
  • Stephen Njoroge Gikera & another v Econite Mining Company Limited & 7 others
    [2018] eKLR
  • Jones vs. Lipman & Another
    [1962] 1 All ER 442
  • H. L. Bolton (Engineering) Co. Ltd vs. T. J. Graham & Sons Ltd
    [1956] 3 All ER
  • Giella vs. Cassman Brown & Co. Ltd
    (1973) E.A 358
  • Hosea Kiplagat & 6 Others vs National Environment & Management Authority (Nema) & 2 Others
    (2015) eKLR
  • Republic v Public Procurement Administrative Review Board & 2 others
    [2018] eKLR
  • Samuel Mbugua Ikumbu v Barclays Bank of Kenya Limited
    [2015] eKLR
Jurisdiction invoked
Inherent jurisdiction and Section 80 of the Civil Procedure Act and Order 45 of the Civil Procedure Rules (review and joinder applications)

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, "Joseph Kabugi Karanja v Benson Mugo Mukunya & 3 others; Samuel Magana Muigai & 2 others (Intended Interested Parties) [2022] KEELC 1207 (KLR)", Case Analysis (2022). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/1207/eng@2022-02-23

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