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ELCPartially AllowedNot stated in the extract (Plaint dated 17/08/2015; Amended Amended Plaint dated 11/11/2021)· [2024] KEELC 3262 (KLR)

Golden Lion Real Estate Company v Onunga & 6 others (Environment & Land Case 792 of 2015) [2024] KEELC 3262 (KLR)

Environment and Land Court
11 April 2024
6,965 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~28 min to read original · ~4 min brief

The bottom line

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A Nairobi court cancelled a developer's title after finding no lawful conversion of the land's registration regime, returning the property to the original buyer.

What this practically means

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Executive summary

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In this first-instance suit, the plaintiff company claimed ownership of LR No. 1/835 (Original No. 1/225/5), housing the Blacky'z Lounge on Argwings Kodhek Road, Nairobi, purchased from Propco Limited in 2014 for USD 2,300,000 and registered on 21/04/2015 under the Government Lands Act. It sought declarations that the 2018 transfer of LR No. 1/381 (I.R. 200711) to the 2nd Defendant (Frank Logistics Limited) and the subsequent charge in favour of the 7th Defendant were null and void, together with injunctions, cancellation of the 2nd Defendant's title, and damages. The 2nd Defendant asserted it purchased LR No. 1/1381 from one Edward Omwega, holding title under the Registration of Titles Act regime, while the 6th and 7th Defendants (Credit Bank entities) relied on due diligence before registering their charge. The court framed four issues. It found the plaintiff's GLA conveyance, abstract of folio and postal search proved valid registration, sufficient under the GLA regime. Crucially, the 2nd Defendant failed to prove that the property was lawfully converted from the GLA to the RTA regime, a function vested in the Cabinet Secretary under Section 6 of the Land Registration Act. The court catalogued discrepancies in the 2nd Defendant's documents, including transfers registered on 2/03/2017 after injunction orders of 27/01/2017, conflicting valuations on a single day, and a title document referring to different IR numbers. The 2nd Defendant's title was declared unprocedural, illegal, null and void and ripe for cancellation under Section 80. Fraud as pleaded was held unproved. General damages were refused for want of evidence. Judgment was entered for the plaintiff with declarations, a permanent injunction, mandatory cancellation of the 2nd Defendant's title, vacant possession, and costs.

Key legal issues

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01

Whether the plaintiff proved ownership of LR No. 1/835

Holding

The plaintiff proved valid, registered ownership under the GLA regime as at 21/04/2015, sufficient under the GLA where title is evidenced by the last conveyance

Reasoning

The plaintiff produced a properly executed, stamped and registered conveyance dated 13/11/2014, an abstract of folio showing registration on 21/04/2015, and a certificate of postal search confirming his registration as fee simple proprietor. Under the GLA regime these documents sufficed to prove ownership, making him absolute and indefeasible owner.

p. 9
02

Whether the 2nd Defendant's registration was lawful

Holding

Unlawful and irregular; the 2nd Defendant failed to prove conversion of the land from the GLA to the RTA regime, and its documents showed glaring discrepancies

Reasoning

The same parcel cannot hold titles under two registration regimes. Conversion requires action by the Cabinet Secretary under Section 6 of the Land Registration Act, and no evidence of conversion was tendered. Further discrepancies included a title document connecting different IR numbers, transfers registered on 2/03/2017 after injunction orders of 27/01/2017, transfers of one property valued at two different sums on the same day, and the vendor's demise before the transfer registration. The title was procured unprocedurally, illegally, null and void.

p. 12
03

Fraud as pleaded

Holding

Fraud pleaded by the plaintiff was not proved, though the registration was still unlawful

Reasoning

Although the plaintiff particularised fraud against the 2nd and 4th Defendants, the court deliberately declined to make findings on fraud, holding it was not proved to the required standard, and instead rested the outcome on the absence of a lawful conversion and the discrepancies in the 2nd Defendant's documents.

p. 12

Legal principles established

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  • A registered proprietor whose root of title is under challenge must prove the legality of the acquisition beyond merely producing the title instrument
  • Conversion of titles from one registration regime to another is an administrative function vested in the Cabinet Secretary for Lands and designated officers, and absent proof of such conversion no title can issue under a different regime
  • Under the repealed Government Lands Act, title is evidenced by production of the last conveyance and/or instrument since no certificates of title are issued

Court orders

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  1. 1.The plaintiff is hereby declared to be the lawful registered owner of LR No. 1/835 (Original Number 1/225/5)
  2. 2.Permanent injunction restraining the Defendants from interfering with, dealing with or disposing of the property known as L.R. No. 1/381 [I.R. No. 20011] otherwise known as the Blacky'z Lounge
  3. 3.Declaration that the purported transfer of title L.R. No. 1/381 [I.R. No. 200711] to Frank Logistics Limited on 9/05/2018 is illegal, null and void
  4. 4.Declaration that the purported charge of title L.R. No. 1/381 [I.R. No. 200711] in favour of the 7th Defendant is illegal, null and void
  5. 5.Mandatory injunction compelling the 4th Defendant to effect the cancellation of the purported title L.R. No. 1/381 [I.R. No. 200711] in the name of the 2nd Defendant
  6. 6.The 2nd Defendant, their agents and servants to vacate and deliver vacant possession of LR No. 1/835 (Original Number 1/225/5) to the plaintiff forthwith, failing which eviction to issue on application
  7. 7.The plaintiff shall have the costs of the suit

Authorities

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Legislation

  • Constitution of Kenya, 2010Not specified (property rights referenced generally)
  • Land Registration ActSection 6; Section 80(1)-(2); Section 108
  • Land Act2012 (general reference)
  • Government Lands Act (Cap 280) (Repealed)General
  • Registration of Titles Act (Cap 281) (Repealed)Form F; general
  • Land Registration Units Order of 2017General
  • Evidence ActSections 108 and 109
  • Civil Procedure ActSection 27

Cases cited (4)

  • Munyu Maina v Hiram Gathitha
    Civil Appeal No. 239 of 2009
  • Mbiiri Kamau (representing ACK Kitharaini Church, the church Commissioners for Kenya Trustees of the Anglican Church of Kenya) v Munyangia Njoka & 2 others
    [2021] eKLR
  • Philemon L. Wambia V Gaitano Lusitsa Mukofu & 2 Others
    [2019] eKLR
  • Solomon Omwega Omache & Another –V- Zackery O. Ayieko & 2 Others
    (2016) eKLR
Jurisdiction invoked
Original civil suit under the Land Registration Act, 2012 (including Section 80 rectification jurisdiction)

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, "Golden Lion Real Estate Company v Onunga & 6 others (Environment & Land Case 792 of 2015) [2024] KEELC 3262 (KLR)", Case Analysis (2024). Not stated in the extract (Plaint dated 17/08/2015; Amended Amended Plaint dated 11/11/2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/3262/eng@2024-04-11

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