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ELCDismissedMurang'a ELC Appeal (Memorandum of Appeal dated December 20, 2021)· [2023] KEELC 680 (KLR)

Munjo Investment Limited v Gathecha t/a Mungaru Enterprises & another (Environment and Land Appeal 001 of 2022) [2023] KEELC 680 (KLR)

Environment and Land Court
9 February 2023
4,366 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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The Environment and Land Court in Murang'a dismissed an appeal because an unregistered sub-lease cannot beat the rights of a registered landowner in Kenya.

What this practically means

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Executive summary

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This is a first appeal to the Environment and Land Court at Murang'a (L. Gacheru, J) against a ruling of the trial court dated December 16, 2020, which declined an application for a temporary injunction in a mining lease dispute over LR No 10531. The Appellant claimed a sub-lease from the 1st Respondent granted in 2014 and alleged trespass by the 2nd Respondent, the registered proprietor. The 2nd Respondent argued the appeal was incompetent for non-compliance with Order 42 Rule 13(4), that it had occupied the land since pre-independence, and that the Appellant had already been evicted in April 2018, rendering the injunction moot. The Court first held that having admitted the Record of Appeal on May 30, 2022, it could not subsequently declare it fatally defective. Guided by Section 78 of the Civil Procedure Act, Selle v Associated Motor Boat Co, United India Insurance and Mbogo v Shah, the Court re-evaluated the record. It found the Appellant's ten-year sub-lease was unregistered and therefore unenforceable against the registered owner's indefeasible rights under Sections 24, 25 and 26 of the Land Registration Act; mere attachment of the agreements did not prove possession or occupation. Applying Giella v Cassman Brown and Nguruman, the Court held that without a prima facie case the remaining conditions need not be considered, and that no evidence of irreparable loss was adduced. The trial court's discretion was judiciously exercised. The appeal was dismissed entirely with costs to the 2nd Respondent.

Key legal issues

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01

Competence of the Appeal for non-compliance with Order 42 Rule 13(4)

Holding

The submission failed because the Record of Appeal had already been admitted on May 30, 2022

Reasoning

The 2nd Respondent argued the Appeal lacked an official stamp and omitted the 2nd Respondent's pleadings and documents. The Court held that having admitted the Record of Appeal on May 30, 2022, it could not reverse course and declare it fatally defective; such an objection ought to have been raised before admission of the Record of Appeal.

p. 3
02

Whether the Appellant established a prima facie case

Holding

The Appellant failed to establish a prima facie case; his sub-lease was unregistered and he did not demonstrate possession or occupation

Reasoning

The 2nd Respondent was the registered proprietor of LR No 10531 under a 99-year lease. The Appellant's 10-year sub-lease was never registered, so under the Land Registration Act (Sections 24, 25, 26) the registered owner's indefeasible rights prevailed. Merely attaching lease and sub-lease agreements did not demonstrate occupation; the Appellant had in fact been evicted in April 2018.

p. 7
03

Whether the trial Court misdirected itself in applying the Giella v Cassman Brown principles sequentially

Holding

The trial Court did not misdirect itself; having found no prima facie case, it need not consider the other principles

Reasoning

Relying on Nguruman, once a prima facie case fails, irreparable injury and balance of convenience fall away. The Court found no evidence of likely irreparable loss or the Appellant's financial obligations, and held the balance of convenience tilted towards refusing the injunction. The trial Court's discretion was therefore judiciously exercised.

p. 7
04

Standard for interfering with a trial court's discretionary decision on appeal

Holding

The appellate court will not interfere unless the trial judge misdirected himself, misapprehended facts, took or failed to take account of relevant considerations, or the decision is plainly wrong

Reasoning

The Court adopted the principles in United India Insurance Co Ltd v East African Underwriters (Kenya) Ltd (Madan, JA) and Mbogo v Shah. As a first appellate court it must re-evaluate the evidence under Section 78 of the Civil Procedure Act but cannot simply substitute its own discretion for that of the trial court.

p. 3

Legal principles established

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  • Once a Record of Appeal has been admitted, the appellate court cannot turn around and find it fatally defective; such objection must be raised before admission
  • A first appellate court must re-evaluate, re-assess and re-analyse the evidence and draw its own conclusions but will not interfere with a discretionary decision of the trial court absent misdirection or an plainly wrong decision
  • Where a prima facie case is not established, irreparable injury and balance of convenience need no consideration
  • An unregistered lease for a term exceeding one year is valid inter partes but gives no protection against the rights of third parties

Court orders

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  1. 1.The Appeal is dismissed entirely with costs to the 2nd Respondent

Authorities

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Legislation

  • Civil Procedure RulesOrder 42 Rule 13(4)
  • Civil Procedure RulesOrder 40(1)(a) and (b); Order 40 Rule 1
  • Civil Procedure ActSection 78
  • Land Registration ActSections 24(a), 25(1), 26(1)(a) & (b)
  • Constitution of KenyaArticle 40

Cases cited (19)

  • Nguruman Limited vs Jan Bonde Nielsen & 2 Others
    (2014) eKLR
  • Mrao Ltd vs First American Bank of Kenya and 2 Others
    {2003} KLR 125
  • Locabail Internantional Finance Limited vs Agroexpert and others
    {1986} 1 A.KER 90
  • Deoray vs State of Maharashtra & Others
  • Francis Odhiambo Omondi t/a Omondi & Company Advocates vs National Bank of Kenya Limited & 2 Others
    {2018}
  • East African Development Bank vs Hyundai Motors Kenya Limited
    {2006}
  • Selle vs Associated Motor Boat Co
    {1968} EA 123
  • Peter M Kariuki v Attorney General
    [2014] eKLR
  • Abok James Odera t/a AJ Odera & Associates vs John Patrick Machira t/a Machira & Co Advocates
    [2013] eKLR
  • United India Insurance Co Ltd vs East African Underwriters (Kenya) Ltd
    (1985) EA 898
  • Mbogo vs Shah
    (1968) EA 93
  • Giella vs Cassman Brown & Company Limited
    (1973) EA 358
  • American Cyanamid Co vs Ethicom Limited
    (1975) A AER 504
  • Moses C Muhia Njoroge & 2 others vs Jane W Lesaloi and 5 others
    (2014) eKLR
  • Mega Garment Limited –v- Mistry Jadva Parbat & Co (EPZ) Limited
    (2016) eKLR
  • Bachelors Bakery Ltd –v- Westlands Securities Ltd
    (1982) KLR 366
  • Edwin Kamau Muriu Vs Barclays Bank of Kenya Ltd
    Nairobi HCCC No 1118 of 2002
  • Kenya Commercial Finance Company Limited Versus Afraha Education Society & Others
    Civil Appeal No 142 of 1999 (2001) IEA86
  • Mureithi Vs City Council of Nairobi
    Civil Appeal No 5 of 1979 (1981) KLR 322
On appeal from
Chief Magistrate's Court (Murang'a CMCC ELC No 30 of 2019, formerly Murang'a ELC No 6 of 2019)
CMCC ELC No 30 of 2019
Jurisdiction invoked
First appeal under Section 78 of the Civil Procedure Act (Court of Appeal powers donated to the first appellate court)

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, "Munjo Investment Limited v Gathecha t/a Mungaru Enterprises & another (Environment and Land Appeal 001 of 2022) [2023] KEELC 680 (KLR)", Case Analysis (2023). Murang'a ELC Appeal (Memorandum of Appeal dated December 20, 2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/680/eng@2023-02-09

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