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ELCDismissedNot stated in the judgment· [2022] KEELC 1452 (KLR)

Divisional Intergrated Development Programmes Co Ltd v Nelson Mbuva Kithuka & another [2022] KEELC 1452 (KLR)

Environment and Land Court
15 February 2022
2,097 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~8 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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This was a ruling on the Plaintiff's Notice of Motion dated 12th February, 2021, brought under sections 1A, 1B and 3A of the Civil Procedure Act and Order 51 Rule 1 of the Civil Procedure Rules, seeking extension of time by 120 days to comply with a written consent dated 2nd June, 2020, and an order compelling the Defendants to furnish the Land Control Board consent, executed transfer forms, IDs, KRA PIN certificates and photographs to effect transfer of Mavoko Town Block 2/90 to the Plaintiff. The consent had required the Plaintiff to pay the Defendants Kshs. 9,230,000/= (balance of purchase price plus costs) within eight months or by 28th February, 2021, whichever was earlier. The Plaintiff, through its director Boniface Mutua Musyoki, alleged it could not raise the funds because purchasers demanded transfer documents first, which the Defendants had withheld. The Defendants, through Charles Muloo Kithuka, opposed the application, contending the court lacked jurisdiction to vary a freely entered consent order and that both compliance dates had passed. The court framed a single issue: whether time should be extended. Perusing the consent, Justice Christine Ochieng found no term requiring the Defendants to provide completion documents before payment, and no term that the Plaintiff would first sell plots to raise funds; Clause (c) made the Defendants' execution of documents conditional on full payment, and the consent contained a default clause the Plaintiff appeared to be attempting to defeat. Relying on Order 50 Rule 6 and settled authority that consent orders have contractual effect and can only be set aside on grounds such as fraud, collusion, illegality or mistake, the court held that no such ground was demonstrated and dismissed the application with costs on 15th February, 2022.

Key legal issues

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01

Whether the court should extend time for the Plaintiff to comply with the consent dated 2nd June, 2020

Holding

The application was dismissed; the discretion to enlarge time could not be exercised because no vitiating ground was demonstrated

Reasoning

The court reproduced the consent and found no term requiring the Defendants to furnish completion documents before payment, nor any term that the Plaintiff was to first sell plots to raise funds. Clause (c) required the Defendants to sign transfer documents only upon full payment. The consent contained a default clause the Plaintiff appeared to seek to defeat. Applying Order 50 Rule 6 and the case law on consent orders, the court held that extension of time could not be granted absent fraud, collusion or other grounds justifying interference with a consent order.

p. 3
02

Whether the Defendants were obliged under the consent to provide transfer documents before payment

Holding

No; the consent required the Defendants to execute transfer documents only upon full payment of Kshs. 9,230,000/= by the Plaintiff

Reasoning

The court perused the consent and noted there was no indication that plots from the suit land were to be sold to third parties first to raise funds, nor that the Defendants were to furnish completion documents such as Land Control Board consent, transfer forms, IDs and KRA PIN certificates in advance. Clause (c) made the Defendants' execution of documents conditional upon full payment, and the consent carried a default clause against the Plaintiff.

p. 2

Legal principles established

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  • A consent judgment or order has contractual effect and can only be set aside or varied on grounds which would justify setting aside a contract, such as fraud, collusion, illegality, mistake, or if conditions remaining to be fulfilled are not carried out
  • A consent order is not lightly to be set aside or varied save by consent or on recognized grounds
  • The court has power under Order 50 Rule 6 to enlarge time fixed by an order of the court, on terms as justice requires, even after expiry of the time

Court orders

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  1. 1.The Plaintiff's Notice of Motion application dated 12th February, 2021 is dismissed with costs

Authorities

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Legislation

  • Civil Procedure Actsections 1A, 1B, 3A and section 3
  • Civil Procedure RulesOrder 51 Rule 1
  • Civil Procedure RulesOrder 50 Rule 5
  • Civil Procedure RulesOrder 50 Rule 6

Cases cited (8)

  • Committee, Holy Rosary Girls Primary School V Mick Wangila Milimo
    (2005) eKLR
  • Sofia Mohamed V Rodah Sitienei
    (1992) eKLR
  • Kenya Commercial Bank Ltd Vs Specialized Engineering Co. Ltd
    [1982] KLR 485
  • Samuel Mbugua Ikumbu v Barclays Bank of Kenya Limited
    [2015] eKLR
  • Flora Wasike v. Destimo Wamboko
    (1982 1988)1 KAR 625
  • J.M. Mwakio v. Kenya Commercial Bank Ltd
    Civ. Apps 28 of 1982 and 69 of 1983
  • Brooke Bond Liebig v. Mallya
    1975 E.A. 266
  • East African Portland Cement Company Limited v Superior Homes Limited
    [2017] eKLR
Jurisdiction invoked
Sections 1A, 1B and 3A of the Civil Procedure Act and Order 51 Rule 1 of the Civil Procedure Rules (the application); Order 50 Rule 6 of the Civil Procedure Rules on enlargement of time

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, "Divisional Intergrated Development Programmes Co Ltd v Nelson Mbuva Kithuka & another [2022] KEELC 1452 (KLR)", Case Analysis (2022). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/1452/eng@2022-02-15

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