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ELCPartially AllowedOriginating Summons dated 14th September 2021· [2023] KEELC 623 (KLR)

Raghwani & 2 others v Kerai (Legal Representative of the Estate of Kanji Mavji Kerai) (Environment & Land Case E042 of 2021) [2023] KEELC 623 (KLR)

Environment and Land Court
9 February 2023
3,080 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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A Kenyan court can order co-owners stuck in a deadlock to sell their share of jointly owned land to the other co-owners who get first priority to buy.

What this practically means

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Executive summary

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The Applicants and Kanji Mavji Kerai (deceased) were tenants in common in equal undivided shares of LR No. 209/4593/2 in Nairobi, with the Applicants holding 75% and the deceased's 25% share devolving on the Respondent as sole executor. The Applicants, former business partners of the deceased, asserted that relations broke down, that the deceased declined to participate in management or accept rental cheques (now exceeding Ksh 10,450,560), and that cooperation for development or sale was impossible. By Originating Summons under Order 37 of the Civil Procedure Rules and Section 96 of the Land Registration Act, they sought valuation, an order for sale of the Respondent's 25% share to them on first priority, accounts of rentals, and execution of transfer documents. The Respondent opposed, contending the deceased's refusal to take rent was on principle owing to grievances over earlier joint ventures, that no consent was ever requested or declined, that accounts had not been rendered, and that he was willing to buy out the co-owners once a price was agreed. The court, applying Section 96 of the Land Registration Act and the nature of tenancy in common, held that where co-owners cannot agree on use or partition, sale of the share with priority to willing co-owners is the appropriate remedy, and found the Applicants had made out a case. It noted the Respondent's purchase wish, raised only as an affidavit averment, could not be granted as a substantive relief. The court ordered valuation by a registered valuer appointed by the Chairman of the Institution of Surveyors of Kenya, sale of the 25% share to the Applicants on first priority, cooperation and Deputy Registrar execution if necessary, costs of valuation borne by the Applicants, and each party to bear own costs.

Key legal issues

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01

Whether the Applicants made out a case for valuation and sale of the Respondent's 25% undivided share under Section 96 of the Land Registration Act

Holding

Yes - the parties fell out, cooperation was impossible, and the Respondent admitted declining rental income, warranting the reliefs sought

Reasoning

The court found it undisputed that the Applicants and the deceased fell out in the management of the co-owned property and that the discord extended to the Respondent, who admitted declining rental proceeds. Settlement attempts failed. Guided by Section 96 of the Land Registration Act, the court held that where tenants in common cannot agree, sale with priority to willing co-owners is the remedy. The Respondent's undocumented grievances about past ventures did not defeat the application.

p. 6
02

Nature of a tenancy in common

Holding

Tenants in common hold undivided shares with no right of survivorship; only unity of possession is essential

Reasoning

The court relied on Megarry & Wade and the Kurshed Begum Mirza case to characterise the co-ownership: each tenant in common holds a distinct undivided share, there is no survivorship, and only unity of possession is essential. This framed the legal basis for ordering separation and sale of a share under Section 96.

p. 5

Legal principles established

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  • Where co-owners as tenants in common cannot agree on use, occupation or partition of the property, the stalemate is resolved by sale of the property or a share, with co-owners given priority to buy out the others
  • A substantive relief cannot be granted on the basis of a mere averment in an affidavit; it must be specifically sought

Court orders

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  1. 1.A valuation of LR No 209/4593/2 and of the shares of the tenants in common shall be undertaken by a registered valuer appointed by the Chairman of the Institution of Surveyors of Kenya at the instance of the Applicants with notice to the Respondent
  2. 2.An order for the sale and disposal of one quarter (25%) undivided share held by the Respondent as legal representative of the estate of Kanji Mavji Kerai in LR No 209/4593/2 to the Applicants on first priority
  3. 3.The parties shall co-operate fully in the sale and make available all necessary documents, failing which the Deputy Registrar shall be at liberty to execute any necessary document or instrument
  4. 4.The cost of the valuation and other incidentals to be met by the Applicants
  5. 5.Either party at liberty to apply to court limited to procedural issues or matters arising from the orders
  6. 6.Each party to bear own costs

Authorities

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Legislation

  • Civil Procedure Rules (Cap 21, Laws of Kenya)Order 37 Rules 3 and 8
  • Land ActSection 96(1)
  • Civil Procedure ActSection 3A
  • Land Registration Act No. 3 of 2012Section 96 (including 96(2) and 96(3))

Cases cited (2)

  • Kurshed Begum Mirza v Jackson Kaibunga
    [2017] eKLR
  • Michael Munene Njogu & Others v Bernard Githinji & Others
    Kerugoya ELC No. 151 of 2013
Jurisdiction invoked
Order 37 Rules 3 and 8 of the Civil Procedure Rules, Section 96(1) of the Land Act/Land Registration Act No. 3 of 2012 and Section 3A of the Civil Procedure 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, "Raghwani & 2 others v Kerai (Legal Representative of the Estate of Kanji Mavji Kerai) (Environment & Land Case E042 of 2021) [2023] KEELC 623 (KLR)", Case Analysis (2023). Originating Summons dated 14th September 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/623/eng@2023-02-09

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