Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELCPartially AllowedEnvironment & Land Miscellaneous Case 4 of 2016 & Miscellaneous Application 5, 10, 13 & 85 of 2016 (Consolidated)· [2023] KEELC 20372 (KLR)

Emily Mwende Waita v Venture Holdings Limited

Environment and Land Court of Kenya
21 September 2023
5,023 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

#

Kenya's Environment and Land Court ordered a property developer to refund buyers millions of shillings after failing to transfer apartments years past the agreed completion date.

What this practically means

#

Executive summary

#
This consolidated Environment and Land Court matter arose from Originating Summons filed by Emily Mwende Waita under Order 37 Rules 3 and 14 of the Civil Procedure Rules, seeking determination whether Venture Holdings Limited was prevented from transferring Apartment B8 on L.R. 330/356 by circumstances beyond its control, whether it breached the Sale Agreement dated 15th April 2010 by failing to complete by 31st December 2010, and whether she was entitled to a refund of Kshs 13,488,410/=. The Applicant testified she paid Kshs 8,238,410/= and took possession but the property was never transferred. The Respondent, through Kwame Kariuki, contended it sold as beneficial owner subject to conditions precedent, that the upstream vendor Grace Wanjiru Koni frustrated the transfer of Sub-division A leading to pending HCCC 361 of 2011, and that the Applicant herself breached the payment terms. The court held that failure to transfer the property long after the agreed completion date was a fundamental breach amounting to repudiation, relying on Dhanjal Investment Ltd v Shabaha Investment Ltd on time being of the essence. The Applicant's questions were answered in the affirmative; judgment was entered for the Applicant and the other consolidated applicants for various sums payable within 90 days, upon which they must hand over vacant possession. General damages of Kshs 6,000,000/= were refused because the Applicant had been in occupation, and each party was ordered to bear its own costs.

Key legal issues

#
01

Whether the Respondent was in breach of the Sale Agreement by failing to transfer the property

Holding

Yes - failure to transfer long after the completion date was a fundamental breach amounting to repudiation

Reasoning

The court found it undisputed that the parties entered a sale agreement with a completion date of 31st December 2010. Despite payment of the purchase price and the Applicant taking possession, the property was never transferred. The Respondent attributed the delay to Grace Koni's refusal to complete the upstream transfer, but the court held the non-transfer after the agreed completion date constituted fundamental breach justifying termination and refund.

p. 8
02

Whether the Respondent was prevented from transferring by circumstances beyond its control

Holding

No - the Applicant proved her claim notwithstanding the pending suit against Grace Koni

Reasoning

The Respondent argued the delay flowed from Grace Wanjiru Koni's breach of the 2009 head agreement and the pending HCCC 361 of 2011. The court noted the Respondent sold as beneficial owner with conditions precedent, but found the Applicant had a justiciable right since the Respondent had not transferred or registered the property, and held the claim proved.

03

Whether the Applicant was entitled to general damages

Holding

No - the Applicant had been in occupation of the property for a considerable time

Reasoning

The Applicant sought Kshs 6,000,000/= in general damages. The court declined the award because she had occupied the suit property since before filing suit, meaning she had enjoyed the benefit of the premises despite non-transfer. This also informed the costs direction that each party bear own costs.

p. 9

Legal principles established

#
  • Failure to transfer suit property long after the mutually agreed completion date is a fundamental breach amounting to repudiation of the contract
  • Where time is of the essence, failure to perform within the stipulated deadline is a fundamental breach entitling the innocent party to terminate and claim damages

Court orders

#
  1. 1.Judgment entered in favour of the Applicant for Kshs 13,488,410/= payable within 90 days
  2. 2.Judgment for Beatrice Akinyi Migoye for Kshs 13,488,410/= payable within 90 days
  3. 3.Judgment for Chege Phares Thumbi and Christopher Theriki Echaria for Kshs 26,951,000/= payable within 90 days
  4. 4.Judgment for Maria Njeri Matubia for Kshs 13,500,000/= payable within 90 days
  5. 5.Judgment in favour of Rose Mbarari Karingi for Kshs 13,488,410/= payable within 90 days
  6. 6.Upon payment, the recipients to immediately hand over vacant possession of the said apartments to the Respondent
  7. 7.Each party to bear own costs of the suit

Authorities

#

Legislation

  • Civil Procedure RulesOrder 37 Rule 3 and 14
  • Evidence ActSection 117

Cases cited (6)

  • Solomon Ndegwa Kuria vs. Peter Nditu Gitau
    [2019] eKLR

    Breach of sale agreement to complete sale and transfer

  • Housing Company of East Africa Limited vs. Board of Trustees NSSF and others
    (2018) eKLR

    Contract construction, extensions of completion and breach

  • Dhanjal Investment Ltd vs Shabaha Investment Ltd
    Civil Appeal No. 80 of 2019 (2022) KECA 3667 (KLR)

    Time of the essence elevates completion deadline to a condition; failure is fundamental breach

  • Kukal Properties Development Ltd vs. Tafazzal H Maloo & others
    (1993) eKLR

    Consequences of fundamental breach including termination, damages and specific performance

  • Agri Feed Co. Ltd vs. Christine Chepchirchir Baig and Another
    [2019] eKLR

    Good faith in a transaction; burden on party in position of active confidence

  • Five Fourty Aviation Limited vs. Erwan Lanoe
    [2019], cited in Civil Appeal No. 64 of 2022 (Nakuru) - Jomo Kenyatta University of Agriculture and Technology vs. Kwanza Estate Limited

    Frustration doctrine - claim not founded on frustration so agreement should not be terminated

Jurisdiction invoked
Original jurisdiction of the Environment and Land Court under Article 162(2)(b) of the Constitution and the Environment and Land Court Act; Originating Summons under Order 37 Rules 3 and 14 of the Civil Procedure Rules

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Emily Mwende Waita v Venture Holdings Limited", Case Analysis (2023). Environment & Land Miscellaneous Case 4 of 2016 & Miscellaneous Application 5, 10, 13 & 85 of 2016 (Consolidated). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/20372/eng@2023-09-21

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