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ELCPartially AllowedEnvironment & Land Case 322 of 2018· [2023] KEELC 17755 (KLR)

Linda Chepkorir Ruto & another v Joseph Yego (Sued as the Legal Representative of the Estate of Sally Cherutich) & 4 others

Environment and Land Court of Kenya
6 June 2023
16,076 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~64 min to read original · ~4 min brief

The bottom line

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A Nakuru court cancelled a fraudulently obtained land title, upheld the original owners' claim, and awarded them Kshs. 2.5 million in exemplary damages.

What this practically means

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Executive summary

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The plaintiffs, registered proprietors of Nakuru Municipality Block 23/728 since 2010 under a certificate of lease issued on 2/12/2010, sued after discovering in October 2018 that a second lease and certificate of lease had been issued over the same parcel to the 1st defendant, Sally Cherutich (since deceased and substituted by her husband as legal representative), who had sold the land to the 2nd defendant. The plaintiffs alleged fraud by the private defendants and the land registries, including fabrication of a lease, disappearance of the genuine parcel file, and falsification of registry records, and sought declarations, nullification, reconstruction of the register, injunction, and general and exemplary damages. The 1st and 2nd defendants counterclaimed for ownership, mesne profits and vacant possession, asserting the 1st defendant was allocated the land in 1997. The court found the plaintiffs had been in uncontroverted possession since 2010 with a documented chain of title predating the 1st defendant's lease by decades. The 1st defendant's 1997 allotment letter required payment within 30 days; payment was made 21 years later in 2018, so the offer had lapsed and conferred no interest. The haste with which her title was processed and sold before the certificate issued, the registries' failure to produce the original Presentation Book despite notice to produce, and the Chief Land Registrar's insistence on registering the lease despite the plaintiffs' complaint led the court to draw adverse inferences and find all defendants engaged in fraud. The plaintiffs' title was upheld, the 1st and 2nd defendants' purported title nullified, the counterclaim dismissed, the register ordered reconstructed, a permanent injunction issued, and exemplary damages of Kshs. 2,500,000/= awarded with costs to the defendants jointly and severally. General damages were declined for lack of proof of extent.

Key legal issues

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01

Which of the two competing titles over Nakuru Municipality/Block 23/728 is genuine

Holding

The plaintiffs' title is the only genuine title; the 1st defendant's title was fraudulently procured and is nullified

Reasoning

The court weighed the parties' conduct wholistically: the plaintiffs were in uncontroverted possession since 2010 with a chain of documents predating the 1st defendant's lease by decades; the 1st defendant's allotment had lapsed for non-payment within 30 days, payment came 21 years later, her title was processed with unexplained haste, and she sold the land before her certificate of lease issued. The registry's failure to produce the original Presentation Book attracted an adverse inference.

02

Whether the 1997 letter of allotment to the 1st defendant conferred any interest

Holding

No; the offer lapsed for non-compliance with the 30-day payment condition and late payment could not revive it

Reasoning

Relying on Ali Mohamed Dagane and Bubaki Investment, the court held that an allottee must comply with conditions including payment of stand premium within the prescribed period; where an offer specifies an acceptance period it stands revoked on expiry, and only deliberate positive action by land officers charged with allocation could regularize a lapsed allocation, especially where third parties had since obtained title.

03

Whether fraud was proved against all the defendants including the land registries

Holding

Yes; all defendants were engaged in fraudulent acts that birthed the 1st defendant's title

Reasoning

The court found the defendants knew of the plaintiffs' subsisting records yet hurriedly processed the 1st defendant's title; the 3rd defendant pressed for continued registration despite the plaintiffs' documents having been submitted; the 3rd and 4th defendants failed to produce the original Presentation Book despite notice to produce, justifying an adverse inference that the registry had something to conceal.

p. 21
04

Whether the plaintiffs' failure to produce certified copies of their documents was fatal

Holding

No; the objection was of no merit because the documents were obtained during due diligence long before any litigation was contemplated

Reasoning

PW1 obtained the documents in 2010 to verify the vendor's title, not for litigation, so certification was not expected. The court observed it would have been more suspicious had the plaintiffs produced fully certified copies, given the claim that the registry records vanished; the defendants' insistence on certification damaged their own case.

p. 21
05

Whether the 1st and 2nd defendants' counterclaim should succeed

Holding

It was dismissed with costs as lacking merit

Reasoning

Since the plaintiffs' title was upheld and the 1st defendant's title found fraudulent, the defendants' claim to be proper, beneficial and legal owners, and for mesne profits and vacant possession, could not stand.

p. 23

Legal principles established

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  • An allotment letter lapses if its conditions, including payment within the prescribed period, are not complied with; late payment long after expiry confers no proprietary interest
  • A court may draw an adverse inference where a party in custody of evidence fails to produce it
  • Two certificates of title over one parcel cannot both be genuine; one must be fraudulent

Court orders

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  1. 1.Declaration that the plaintiffs are the genuine owners and/or legal proprietors of the leasehold title in Nakuru Municipality/Block 23/728
  2. 2.Declaration that any purported title held by the 1st and/or 2nd defendants is a fraudulent title
  3. 3.Nullification of the 1st defendant's purported title and all records held by the 3rd and 4th defendants in connection with it
  4. 4.Order that the 3rd defendant reconstruct and restore the land parcel file and land register in the Nakuru Land Registry containing the plaintiffs' records of title
  5. 5.Permanent injunction restraining the 1st and 2nd defendants from trespassing on, entering, remaining on, utilizing, selling, alienating, charging or otherwise interfering with Nakuru Municipality/Block 23/728
  6. 6.Dismissal of the 1st and 2nd defendants' counterclaim with costs
  7. 7.Exemplary damages of Kshs. 2,500,000/= payable by the defendants jointly and severally
  8. 8.Taxed costs of the suit borne by the defendants jointly and severally
  9. 9.Interest on exemplary damages from the date of judgment and on taxed costs from the date of the certificate of taxation until payment in full

Authorities

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Legislation

  • Evidence Act (Cap 80)Sections 107, 109, 112
  • Evidence ActSection 68
  • Land Registration ActSection 33(5)
  • Civil Procedure ActSections 1A, 1B, 3A

Cases cited (21)

  • Ali Mohamed Dagane v Hakar Abshir & Another
    Garissa ELC Case No 65 of 2017 [2021] eKLR

    An allotment letter becomes operative only on compliance with its conditions including payment within the prescribed period

  • Bubaki Investment Co Ltd v National Land Commission & 2 Others
    [2015] eKLR

    An offer with a specified acceptance period stands revoked on expiry; late payment confers no proprietary interest

  • Joyce Kilonzo v Attorney General & 3 Others
    [2022] eKLR

    Relied on regarding lapse of allotment terms

  • Wycliffe Tembo & Another v Vipingo Development Ltd & Others
    Malindi ELC Petition No E015 of 2020 (unreported)

    Relied on by plaintiffs on allotment/registration issues

  • Warson Ltd v Richard Mwangi Wachira & 5 others
    [2019] eKLR

    Two certificates of title over one parcel ipso facto depict fraud

  • Joseph Kiprotich Bor v Tabutany Chepkopech Chebusit
    [2021] eKLR

    An older title had to be cancelled before a new one could be issued

  • Joseph Karisa Mutsonga v Johnson Nyati
    [1985] eKLR

    Charges of fraud should not be lightly made or considered

  • Gladys Wanjiru Ngacha v Teresa Chepsaat & 4 others
    [2013] eKLR

    Charges of fraud should not be lightly made or considered

  • Edward Mwangi Irungu v Chief Land Registrar & others
    [2018] eKLR

    Where there are two titles the court must independently assess the genuineness of each

  • Elizabeth Wanjiru Evans v Richard Kipdilaat & 2 others
    [2019] eKLR

    Where there are two titles the court must independently assess the genuineness of each

  • Baruthi Bundi v Demitila Obala Ouma & 2 others

    Land Registrar's evidence is too important to be ignored

  • Ibrahim Onyinkwa & 2 others v Royal Media Services Ltd
    [2013] eKLR

    Duty to avail makers of documents to court

  • In The Estate of Charles Ndegwa Kiragu
    [2016] eKLR

    Probative value does not lie in mere copies

  • Philemon Wambia v Gaitano Lusitsa Mukofu & 2 Others
    [2019] eKLR

    Documents are questionable where records are absent and no witness from the alleged source is called

  • Kenya Akiba Microfinance Ltd v Ezekiel Chebii & 14 Others
    [2012]

    Adverse inference where a party fails to produce evidence in its custody

  • Republic v Sammy Kipkoech Kitur & another
    [2005] eKLR

    A party may elect not to call a material witness but does so at the risk of its own case

  • Nguku v Republic
    [1985] eKLR

    Presumption that withheld evidence would be unfavourable extends beyond oral testimony to inanimate objects

  • Abiero v Thabiti Finance Company Ltd & another
    [2001] eKLR

    What constitutes general damages

  • The Nairobi Star Publication Limited v Elizabeth Atieno Oyoo
    [2018] eKLR

    Limited categories in which exemplary damages may be awarded

  • Wilfred Keli Ndolo v Jescah Gatakaa Amboka & another
    [2019] eKLR

    Assessment of exemplary damages is discretionary and not bound by evidence required for general damages

  • Mbau Saw Mills Ltd v Attorney General & 2 others
    [2014] eKLR

    Offer in allotment letter lapses 30 days after it is made if not accepted as stipulated

Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over land parcels and titles (Article 162(2)(b) Constitution; ELC Act), invoked by plaint and counterclaim

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Linda Chepkorir Ruto & another v Joseph Yego (Sued as the Legal Representative of the Estate of Sally Cherutich) & 4 others", Case Analysis (2023). Environment & Land Case 322 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/17755/eng@2023-06-06

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