Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELCDismissedEnvironment & Land Case 4 of 2022· [2023] KEELC 21106 (KLR)

Soita (Suing as a Representative of the Estate of Peter Soita Shitanda - Deceased) v Malumasi & 2 others

Environment and Land Court of Kenya
25 October 2023
4,789 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~19 min to read original · ~4 min brief

The bottom line

#

Kenya's Environment and Land Court dismissed a landowner's attempt to derail a land dispute case, confirming companies can sue without board resolutions.

What this practically means

#

Executive summary

#
This ruling by the Environment and Land Court at Bungoma (E.C. Cherono, J) determines a Notice of Preliminary Objection dated 4th February 2023 raised by the plaintiff, Betty Glorious Soita, suing as representative of the estate of the late Peter Soita Shitanda, against the defendants, including Kabras Farm Ltd. The objection raised four grounds: that the court lacks jurisdiction because the issues are commercial; that the applicant lacks locus standi to sue on behalf of an incorporated company; non-compliance with section 10 of the Arbitration Act; and non-compliance with rule 65 of the Land Regulations 2017. The court held that the pleadings disclose purely land disputes - trespass, ownership, eviction and damages - within section 13(1) of the Environment and Land Court Act, and that no dispute over shares, corporate veil, winding up or voting rights appears in the pleadings. A similar jurisdictional objection had been rejected by Justice Boaz N. Olao on 7th July 2022 and was res judicata. On the resolution issue, following Arthi Highway Developers v West End Butchery, the court held that no board resolution is required for a company to file suit, swear affidavits or instruct advocates; the sole surviving director's deposition sufficed. On arbitration, the plaintiff never applied under section 6 at entry of appearance and could not object to her own suit. The rule 65 ground failed as no such legislation exists. The objection was dismissed with costs to the defendants.

Key legal issues

#
01

Whether the ELC has jurisdiction over a dispute said to be commercial/company-related

Holding

The court has jurisdiction; the pleadings disclose land disputes (trespass, ownership, eviction) within section 13(1) of the ELC Act, not shareholding or company-affairs disputes

Reasoning

The court examined the plaint and counterclaim and found the reliefs sought fall within section 13(1),(2),(7) of the ELC Act. No dispute on shareholding, lifting the corporate veil, winding up or voting rights appears in the pleadings; those were only alluded to in submissions. A prior ruling of 7th July 2022 had rejected the same objection, making it res judicata.

02

Whether a resolution is required for a company to file suit, swear affidavits or instruct advocates

Holding

No resolution is required; a director authorised to act for the company may do so unless the contrary is shown

Reasoning

Relying on the Court of Appeal in Arthi Highway Developers v West End Butchery, which traced the Bugerere Coffee Growers rule and its overruling in Uganda, the court held that the surviving director's verifying affidavit deposing authority sufficed. The plaintiff, neither director nor member, lacked capacity to challenge it.

03

Whether section 10 of the Arbitration Act bars the court's jurisdiction

Holding

No; the plaintiff never invoked section 6 at entry of appearance and cannot object to her own suit

Reasoning

The court applied Court of Appeal authority (Eunice Soko Mlagui; Charles Njogu Lofty) that a party desiring arbitration must apply for stay at the time of entering appearance or before filing defence. No such application existed, pleadings had closed, and the plaintiff herself instituted the suit.

p. 8
04

Compliance with rule 65 of the Land Regulations 2017

Holding

Ground fails; no such legislation exists and the actual Regulation 65 is irrelevant to the dispute

Reasoning

The court found no statute called Land Regulations 2017; the Land Registration (General) Regulations 2017 exist, and Regulation 65 deals with registration of dispositions in favour of trustees incorporated under the Trustees (Perpetual Succession) Act, which has no bearing on this matter. Counsel did not submit on the ground.

p. 9

Legal principles established

#
  • A company need not produce a board resolution authorising filing of a suit, swearing an affidavit or instructing an advocate; it suffices for the deponent to state authority, and a director authorised to act has the powers of the board
  • An objection based on an arbitral clause cannot oust the court's jurisdiction where no section 6 application was made at the time of entering appearance
  • A party who filed a suit cannot raise a preliminary objection to her own suit's jurisdiction

Court orders

#
  1. 1.The Notice of Preliminary Objection dated 4th February 2023 is dismissed
  2. 2.Costs of the objection awarded to the defendants

Authorities

#

Legislation

  • Constitution of Kenya, 2010Article 162(2)(b)
  • Environment and Land Court ActSections 13(1), (2) and (7)
  • Arbitration ActSections 6(1) and 10
  • Civil Procedure RulesOrder 4 Rule 1(4)
  • Land Registration (General) RegulationsRegulation 65
  • Trustees (Perpetual Succession) ActCap 43
  • Companies ActGeneral

Cases cited (18)

  • Mukisa Biscuits Manufacturing Co. Ltd v West End Distributors Ltd
    (1969) E.A 696

    Standards for a valid preliminary objection

  • Janet Syokau Kaswii v Kathonzweni Financial Service Association
    (2014) eKLR

    Preliminary objection standards

  • Sauti Africa Ltd v Cheraik Management Ltd & Anor
    (2012) eKLR

    Preliminary objection standards

  • Kensan Insurance Brokers Ltd & Anor v Kenindia Assurance Company
    Civil Application No. 94 of 1997

    Preliminary objection standards

  • Litein Tea Factory Company Ltd v Davis Kiplagat Mutai & 5 Others
    (2015) eKLR

    Preliminary objection standards

  • Stephen Mugo Muthongori & 3 Others v Commissioner of Lands & 2 Others
    HCCC 932 of 2003 (2003) eKLR

    Preliminary objection standards

  • Kenya Commercial Bank Ltd v Stage Coach Management Ltd
    (2014) eKLR

    Need for company resolution/authority to institute suit

  • Anne Mwangi Hinga v Victoria Njoki Gathara
    (2009) eKLR

    Authority to act for a company

  • Fubeco China Fushun v Naiposha Company Limited & 11 Others
    (2014) eKLR

    No resolution required for company to file suit

  • Arthi Highway Developers Limited v West End Butchery Limited & 6 Others
    (2015) eKLR

    No board resolution required; director's authority suffices

  • Bugerere Coffee Growers Ltd v Sebaduka & Anor
    (1970) 1 EA 147

    Former rule requiring resolutions; since overruled

  • Tatu Naiga & Emporium v Virjee Brothers Ltd
    Civil Appeal No. 8 of 2000

    Confirming Bugerere case overruled

  • United Assurance Co. Ltd v Attorney General
    SCCA No. 1 of 1998

    Director authorised to act has powers of the board

  • Eunice Soko Mlagui v Suresh Parmar & 4 Others
    (2017) eKLR

    Section 6(1) requires arbitration referral application at entry of appearance

  • Charles Njogu Lofty v Bedouin Enterprises Ltd
    CA No. 253 of 2003

    Stay/referral to arbitration refused if not made at entry of appearance

  • Niazons (K) Ltd v China Road & Bridge Corporation Kenya
    (2001) KLR 12

    Timing of arbitration referral applications

  • Corporate Insurance Co. v Loise Wanjiru Wachira
    CA No. 151 of 1995

    Timing of arbitration referral applications

  • Kenindia Assurance Co. Ltd v Patrick Muturi
    CA No. 87 of 1993

    Timing of arbitration referral applications

Jurisdiction invoked
Article 162(2)(b) of the Constitution and section 13 of the Environment and Land Court Act

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Soita (Suing as a Representative of the Estate of Peter Soita Shitanda - Deceased) v Malumasi & 2 others", Case Analysis (2023). Environment & Land Case 4 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/21106/eng@2023-10-25

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