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ELCPartially AllowedELC No. 1394 of 2016 (O.S) (Consolidated with ELC No. 249 of 2019)· [2024] KEELC 574 (KLR)

Chudasama v Chudasama; Shah (Suing in her own right and also as the Legal Representative of the Estate of Harilal Mulji Chudasama) (Interested Party) (Environment & Land Case 1394 of 2016 & 249 of 2019 (Consolidated)) [2024] KEELC 574 (KLR)

Environment and Land Court
6 February 2024
9,850 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~39 min to read original · ~4 min brief

The bottom line

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A Nairobi court confirmed a father's property gift was valid but ruled living on family land doesn't make it yours — co-owners must be actually excluded for 12 years.

What this practically means

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Executive summary

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Two consolidated suits, ELC No. 1394 of 2016 (O.S) (an Originating Summons, later converted into a Plaint) and ELC No. 249 of 2019, both brought by Jaswant Harilal Chudasama against his brother Shashikant Harilal Chudasama, concerned L.R. No. 209/3383 Nairobi, registered in 1974 in the names of the Plaintiff, the 1st Defendant and their late father as tenants in common in equal shares. The Plaintiff claimed to have acquired the whole property: first, that the deceased father's 1/3 share was transferred to him by a transfer executed in 1996 and registered in 2003, and second, that he had acquired the 1st Defendant's 1/3 share by adverse possession after the 1st Defendant moved out in about 1994. The 1st Defendant counterclaimed, alleging the transfer of the deceased's share was fraudulent intermeddling done without a grant of letters of administration or his consent, and sought a declaration of trust, rectification of title, valuation and sale of the property with proceeds shared in equal thirds including the estate. The 2nd Defendant, the estate's administratrix ad litem, supported the Plaintiff. The court framed three issues: fraud, trust, and adverse possession. It held that fraud must be strictly proved and the 1st Defendant adduced no evidence of it; the transfer was a valid gift inter vivos which did not fail because registration was completed after the donor's death. No resulting trust was established as contribution was not proved. On adverse possession, the court held that possession of one co-owner is possession of all co-owners, that the Plaintiff's occupation was permissive within the family home, and that no ouster of the 1st Defendant was proved, so time never began to run. The adverse possession claim and the counterclaim failed on those heads. The court ordered valuation of the property, sale with proceeds divided 2/3 to the Plaintiff and 1/3 to the 1st Defendant, giving the Plaintiff the first option to purchase the 1st Defendant's share, with each party bearing their own costs.

Key legal issues

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01

Alleged fraudulent transfer of the deceased's 1/3 share

Holding

The transfer was not fraudulent; it was a gift inter vivos and the estate is entitled to no share

Reasoning

The 1st Defendant bore the legal burden of proving fraud, which must be strictly proved to a standard higher than balance of probabilities. He led no evidence, such as testimony from the Land Registrar or an expert report on the signature, to show the transfer was fraudulent. The legal representative of the estate corroborated that the deceased executed the transfer. The delay in registration was immaterial; the transfer was a completed gift inter vivos and registration after death did not invalidate it.

p. 11
02

Whether a resulting trust arose in favour of the Plaintiff

Holding

No trust was established because contribution could not be proved

Reasoning

A resulting trust arises in favour of the person who advances the purchase money. However, the court was unable to reconcile the contradictions between the Plaintiff's and the 1st Defendant's evidence on their respective contributions to the purchase price and loan repayments. Proof of contribution is critical to a resulting trust claim, and that evidence was not adduced. The certificate of title showing the three as tenants in common in equal shares was prima facie proof of their entitlements.

p. 13
03

Adverse possession of a co-tenant's share in land held under tenancy in common

Holding

The claim failed; possession of one co-owner is possession of all, and ouster was neither pleaded nor proved

Reasoning

The property was registered as tenants in common in equal undivided shares. Until subdivision, each tenant in common owns the whole and shares are unidentifiable. The Plaintiff entered and remained with the permission of the co-owners as a family member in a family home. There was no overt act of ouster excluding the 1st Defendant, who retained a natural right to return. Possession with permission is not adverse, so time never began to run against the 1st Defendant.

p. 16

Legal principles established

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  • As between co-owners, consent of co-tenants is only required when dealing with third parties, not when transferring to another tenant in common
  • Possession by one co-owner is presumed to be possession on behalf of all co-owners; ouster must be proved before adverse possession can run between co-tenants
  • A gift inter vivos does not fail merely because registration of the transfer was completed after the donor's death, where the donor did all in his power to vest the interest

Court orders

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  1. 1.A finding that the transfer of the 1/3 share of L.R. No. 209/3383 from the late Harilal Mulji Chudasama to the Plaintiff was not fraudulent, having been done pursuant to a gift inter vivos
  2. 2.A finding that the Plaintiff's prayer to be declared owner of the 1st Defendant's 1/3 share by adverse possession fails
  3. 3.A finding that the 1st Defendant is entitled to 1/3 of the suit property as a co-tenant
  4. 4.An order for the valuation of the suit property by an independent valuer to determine its market value
  5. 5.An order that the suit property be sold and the proceeds divided in the ratio 2/3 : 1/3 between the Plaintiff and the 1st Defendant respectively, with the Plaintiff having the first option of purchasing the 1st Defendant's share
  6. 6.Each party to bear his/her own costs

Authorities

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Legislation

  • Limitation of Actions ActSection 7
  • Limitation of Actions ActSection 20
  • Limitation of Actions ActSection 38(1)
  • Land Registration ActSection 26(1)
  • Land Registration ActSection 91(5)
  • Land Registration ActSection 91(6)
  • Land Registration ActSection 96
  • Law of Succession ActSection 28(d)
  • Law of Succession ActSection 45(1)
  • Law of Succession ActSection 47
  • Evidence ActSection 107
  • Registration of Titles Act (repealed)Section 22(4)(a)

Cases cited (29)

  • Mtana Lewa vs Kahindi Ngala Mwagandi
    (2015) eKLR
  • Ruga Gituku v Charles Gachau Wachira & 10 Others
    [2017] eKLR
  • Ahmed Abudulkarim & Another vs Member for Lands and Mines & another
    [1958] EA 436
  • Salome Wambui Njau (Suing as Administratrix of the Estate of Peter Kiguru Njuguna) v Caroline Wangui Kiguru
    [2013] eKLR
  • Nephant Kiguta Kingori & 2 Others v Jane Gathoni Kingori
    [2015] eKLR
  • Re Estate of Gedion Kitivi Ndambuki (Deceased)
    (2014) eKLR
  • Bull v Bull
    [1955] 1 QB 232
  • Justus Thiora Kiugu & 4 Others v Nkatha Kiugu & Ano.
    [2015] eKLR
  • Pauline Njoki Mogwanja & Another v Rosken Investments Limited & 3 Others
    Nairobi Civil Appeal No. 234 of 2010
  • Trouistik Union International & Another vs Mbeyu & Another
    [1993] KLR 230
  • Wambui v Mwangi & 3 Others
    [2021] KECA 144 KLR
  • Samuel Ariga Bosire v Abagusii Otenyo Self Help Group
    [2021] eKLR
  • P. Lakshmi Reddy v L. Lakshmi Reddy
    [1957] AIR SC 314
  • Karbala Begum v Mohammed Sayeed & Another
    [1980] 4 SCC 396
  • Njenga Kimani & 2 Others v Kimani Nganga Wainaina
    [2017] eKLR
  • Bernard Ndung'u v David Kamau Mukumbu
    [2021] eKLR
  • Kane vs Harrington
    30 LCR 580 [2022]
  • Central Kenya Ltd v Trust Bank Limited & 4 Others
    [1996] eKLR
  • David Njoroge Kimani & another v James Mukuha Njau
    [2003] eKLR
  • Micheni Aphaxard Nyaga & 2 Others v Robert Njue & 2 Others
    [2021] eKLR
  • Kagina vs Kagina & 2 Others
    (Civil Appeal 21 of 2017) [2021] KECA 242 (KLR)
  • Gitau & 2 Others v Wandai & 5 Others
    [1989] JKR 231
  • Registered Trustees Anglican Church of Kenya Mbeere Diocese v David Waweru Njoroge
    [2007] eKLR
  • Daniel Kimani Ruchine & Others v Swift, Rutherford Co Ltd & another
    [1977] eKLR
  • Wilson Kazungu Katana & 101 Others v Salim Abdalla Bakshwein & Another
    [2015] eKLR
  • Kasuve v Mwaani Investments Limited & 4 others
    [2004] 1 KLR 184
  • Wanje v Saikwa
    [No. 2]
  • Jandu vs Kirpal
    [1975] EA 225
  • Saiqua Sultana Hassan Haroon & 2 Others v Abdul Malik
    [2016] eKLR
Jurisdiction invoked
Environment and Land Court jurisdiction under the Land Registration Act and Section 7 and Section 38 of the Limitation of Actions Act (adverse possession claim over registered land); Section 47 of the Law of Succession Act cited regarding succession disputes relating to land

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, "Chudasama v Chudasama; Shah (Suing in her own right and also as the Legal Representative of the Estate of Harilal Mulji Chudasama) (Interested Party) (Environment & Land Case 1394 of 2016 & 249 of 2019 (Consolidated)) [2024] KEELC 574 (KLR)", Case Analysis (2024). ELC No. 1394 of 2016 (O.S) (Consolidated with ELC No. 249 of 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/574/eng@2024-02-06

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