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ELCDismissedEnvironment & Land Case 382 of 2017· [2022] KEELC 15553 (KLR)

Mwangi v Mwangi & 9 others

Environment and Land Court
20 December 2022
5,363 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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A Kenyan court voided land sale agreements signed before the seller's family obtained a confirmed grant, but let the buyer sue for a refund.

What this practically means

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Executive summary

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The Plaintiff, a tenant on LR No Loc 8/Kandegenye/284/1 (Plot No 1 Kahuro Market) since 1986, sued the ten Defendants seeking specific performance of sale agreements dated May 8, 2004 and June 11, 2007, under which he purchased the entitlements of the 1st and 2nd Defendants (each 1/10th of the property) for Kshs 45,000 and Kshs 40,000 respectively, to be transferred after the conclusion of Murang'a Succession Cause No 116 of 2007. He sought an injunction, a declaration of a 1/5th share, registration as co-owner, and costs. The Defendants denied any sale, asserting the Plaintiff was a tenant, that the agreements were forgeries, and that the vendors lacked capacity as the land was then registered in the name of the deceased Mwangi Gikungu. The court framed two issues: whether the claim was merited, and costs. It found the 2004 agreement complied with Section 3(3) of the Law of Contract Act, and rejected the forgery allegation as unsubstantiated under Section 109 of the Evidence Act. However, because the vendors were mere beneficiaries and not administrators at the time of sale, their dealings amounted to intermeddling contrary to sections 45 and 82 of the Law of Succession Act, rendering both agreements void ab initio. Enforcing them would permit an illegality. The Plaintiff's claim was dismissed entirely, but, noting his loss was not of his doing alone, the court ordered each party to bear its own costs, observing he may pursue the vendors for a refund.

Key legal issues

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01

Whether the sale agreements of May 8, 2004 and June 11, 2007 were valid and enforceable

Holding

The May 8, 2004 agreement complied with Section 3(3) of the Law of Contract Act, but both agreements were void ab initio because the vendors lacked capacity, being neither registered owners nor administrators of the estate.

Reasoning

The court found the 2004 agreement satisfied the writing, signature and attestation requirements of Section 3(3) of the Law of Contract Act. However, the property was registered in the name of Mwangi Gikungu (deceased) who died in 1986, and administrators were only appointed in 2007. The vendors were mere beneficiaries, so their dealings amounted to intermeddling contrary to sections 45 and 82 of the Law of Succession Act, rendering the agreements void ab initio.

p. 9
02

Whether the alleged sale agreements existed despite the 1st Defendant's allegation of forgery

Holding

The court believed the Plaintiff that sale agreements were executed and purchase price paid, as the forgery allegation was unsubstantiated.

Reasoning

DW1 denied executing the agreements and alleged his signature was forged, but never reported the forgery to police and produced no evidence to prove it. Relying on Section 109 of the Law of Evidence Act, the court held he who alleges must prove, and accepted the Plaintiff's testimony that agreements were executed and monies paid, though the agreements were nonetheless void for want of capacity.

p. 9
03

Who should pay costs of the suit

Holding

Each party to bear its own costs, departing from the general rule that costs follow the event.

Reasoning

Although costs are discretionary and normally follow the event under Section 27 of the Civil Procedure Act, the court noted the Plaintiff was the losing party but his loss was not of his doing alone, since the 1st and 2nd Defendants had received monies under the void transactions. It therefore exercised discretion for each party to bear its own costs.

p. 10

Legal principles established

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  • Where a Certificate of Confirmation of Grant has not been issued, no person other than administrators whose rights are limited has capacity to deal with or dispose of a deceased person's property.
  • Sale agreements over estate property executed before confirmation of grant are void ab initio.
  • A party alleging forgery bears the burden of substantiating it with evidence.
  • A purchaser under a void transaction may pursue the vendors for a refund of the purchase price and damages.

Court orders

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  1. 1.The Plaintiff's claim stated in the amended Plaint dated December 18, 2020 is dismissed entirely
  2. 2.Each party to bear its own costs

Authorities

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Legislation

  • Law of Contract Act (Cap 23)Section 3(3)
  • Law of Succession ActSection 3
  • Law of Succession ActSection 45
  • Law of Succession ActSection 82
  • Law of Succession ActSection 93
  • Civil Procedure Act (Cap 21)Section 2
  • Civil Procedure Act (Cap 21)Section 27
  • Law of Evidence Act (Cap 80)Section 109
  • Constitution of KenyaArticle 40(6)

Cases cited (11)

  • Transmara Sugar Co Ltd and Another v Ben Kangwaya Ayiemba & Another
    (2020) eKLR

    Not all illegalities vitiate contracts (relied on by Plaintiff).

  • Succession Cause No 11 of 2009 In the Matter of the Estate of David Julis Nturibi M'Ithinji (deceased)
    2012 eKLR

    Intermeddling results in wastage of a deceased's estate (relied on by Defendants).

  • Patrick Tarzan Matu & Another v Nassim Shariff Abdulla & 2 Others
    [2009] eKLR

    Claims founded on contracts contravening Section 3(3) of the Law of Contract Act are untenable.

  • Silverbird Kenya Limited v Junction Ltd & 3 Others
    [2013] eKLR

    Section 3(3) of the Law of Contract Act is mandatory and divests courts of jurisdiction where uncomplied with.

  • Kothari v Quaresh
    (1967) EA 364

    Estate of a deceased person is vested in the legal representative.

  • Trouistik Union International and another v Jane Mbeyu and another
    (1993) eKLR

    Estate of a deceased person is vested in the legal representative.

  • Jane Gachoki Gathecha v Priscilla Nyawira Gitungu & Another
    [2008] EKLR

    Section 93(1) protection unavailable where transferor had no interest; transaction void ab initio.

  • Estate of M'muthamia Mwendwa (deceased)
    [2016] EKLR

    Beneficiaries selling estate property without grant are intermeddlers; intermeddling attracts criminal sanctions.

  • In Re Estate of John Gakunga Njoroge (deceased)
    [2015] EKLR

    Sale contracts by beneficiaries before confirmed grant are invalid under sections 45 and 82 of the Law of Succession Act.

  • Re Estate of Paul Maria (deceased)
    [2017] eKLR

    Prohibition on sale before confirmation of grant is a statutory command with fatal consequences.

  • Hussein Janmohamed & Sons v Twentsche Overseas Trading Co. Ltd
    [1967] EA 287

    Costs follow the event unless the court directs otherwise.

Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over disputes relating to land (Article 162(2)(b) Constitution; ELC 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, "Mwangi v Mwangi & 9 others", Case Analysis (2022). Environment & Land Case 382 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/15553/eng@2022-12-20

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