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ELCOtherELC 189 of 2017 (Thika)· [2024] KEELC 3999 (KLR)

Chogi & 2 others (Personal Representatives of the Estate of Simon Chogi Gatuma - Deceased) v Kiragu (Environment & Land Case 189 of 2017) [2024] KEELC 3999 (KLR)

Environment and Land Court
16 May 2024
4,369 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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The Plaintiffs, legal representatives of the estate of Simon Chogi Gatuma, sued the Defendant seeking an injunction, eviction and damages for breach of a sale agreement dated 13/10/2009 over L.R. No. Ruiru/Ruiru East Block 2/3445, contending the Defendant breached the agreement by failing to pay the full purchase price and that the transaction was invalid as intermeddling with a deceased's estate under Section 45 of the Law of Succession Act and for want of Land Control Board consent. The Defendant counterclaimed for transfer of the land, having paid Kshs 600,000/- of the Kshs 650,000/- price, taken possession in 2009, and received the original title, ballot and death certificate. The court framed four issues: breach, rescission, entitlement to prayers, and costs. It found no breach by the Defendant: the Kshs 200,000/- instalment was paid by banker's cheque, the obligation to petition for succession lay with the Plaintiff as widower, and the Plaintiff frustrated completion by failing to arrange the Land Control Board meeting. There was no valid rescission as no notice to complete was served. Applying the maxim that equity regards as done what should have been done, and following Kitilit, Sigei and related Court of Appeal authority on constructive trust and proprietary estoppel in the context of missing Land Control Board consent, the court held the Plaintiffs' title was encumbered by a constructive trust in favour of the Defendant. Finding the Defendant's counterclaim embedded in the further amended defence despite the missing label, the court granted specific performance, dismissed the Plaintiffs' suit, and ordered transfer within 45 days, payment of the Kshs 50,000/- balance by the Defendant, execution by the Deputy Registrar in default, and costs to the Defendant.

Key legal issues

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01

Whether the Defendant breached the sale agreement dated 13/10/2009

Holding

No breach was attributable to the Defendant; it was the Plaintiff who frustrated completion by failing to take steps to secure the grant and book the Land Control Board meeting.

Reasoning

The agreement was not subject to time being of essence; timelines were tied to events. The Kshs 200,000/- instalment was payable after filing of the succession petition, which the court found the Defendant duly paid by banker's cheque. The obligation to petition for succession lay with the Plaintiff as widower, and the Kshs 50,000/- balance was payable at a Land Control Board meeting which the Plaintiff never arranged. The court found the Plaintiff had resolved not to honour the agreement.

p. 7
02

Whether the agreement was validly rescinded

Holding

The agreement was never rescinded; there was no evidence of notice to complete served on the Defendant.

Reasoning

The court reviewed the evidence and found nothing to show the Plaintiffs rescinded or terminated the agreement by serving reasonable notice. It relied on Eldo City Ltd v Corn Products to hold that a party cannot simply pull out of a transaction once consensus ad idem is reached, as that would encourage mischievous vendors to engage serious purchasers in a wild goose chase.

p. 7
03

Whether the agreement was illegal for intermeddling contrary to Section 45 of the Law of Succession Act and for want of Land Control Board consent

Holding

Equity regards as done what should have been done; despite the irregularities, equitable conversion entitled the Defendant to specific performance through a constructive trust.

Reasoning

The court, as a court of law and equity, applied the maxim that equity regards as done what should have been done, invoking equitable conversion. Following Willy Kimutai Kitilit v Michael Kibet and related authorities, it held that Article 10(2) elevates equity to a constitutional edict, and constructive trust and proprietary estoppel apply to contracts void for want of Land Control Board consent, particularly where the vendor put the purchaser in possession.

04

Whether the Defendant is entitled to specific performance despite the absence of a formally labelled counterclaim

Holding

Yes; the further amended defence contains a counterclaim even though the word 'counterclaim' is not used, and specific performance was granted as damages were inadequate.

Reasoning

The court perused the further amended defence and found a counterclaim embedded in it. Possession had been delivered in 2009, the original title, ballot and death certificate handed over, and the Defendant had on-sold to third parties who developed the land. Damages would be inadequate and the Plaintiffs' retention of Kshs 600,000/- plus the land would amount to unjust enrichment.

p. 8

Legal principles established

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  • A court cannot rewrite a contract between parties; parties are bound by the terms of their contract unless coercion, fraud or undue influence are pleaded and proved.
  • Under Article 10(2) of the Constitution, equity is a national value, and the doctrines of constructive trust and proprietary estoppel apply to land sale contracts rendered void for lack of Land Control Board consent where the vendor has put the purchaser in possession.
  • Equity imposes a constructive trust against a seller who unconscionably refuses to perform a concluded land sale.

Court orders

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  1. 1.The Plaintiffs are ordered to execute the necessary documents to transfer the suit land to the Defendant within 45 days from the date of this Judgment.
  2. 2.Upon execution of the transfer in his name the Defendant to pay the sum of Kshs. 50,000/- to the Plaintiffs within 15 days thereof.
  3. 3.In default the Deputy Registrar of this Court is mandated to execute all documents to effectuate the orders.
  4. 4.The Defendant shall have the costs.

Authorities

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Legislation

  • Law of Succession ActSection 45
  • Land Control Actnot specified (consent requirements and civil debt recovery provisions referenced)
  • Constitution of Kenya, 2010Article 10(2)(b)
  • Law Society of Kenya Conditions of Sale21-day completion notice provision

Cases cited (10)

  • National Bank of Kenya Ltd Vs. Pipe Plastic Samkolit (K) Ltd
    [2011] eKLR
  • Chartbrook Limited Vs. Persimmon Homes Limited
    (2009) UKHL 38
  • William Kazungu Karisa Vs. Cosmas Angora Chanzera
    (2006) eKLR
  • Kariuki Kinuthia Vs. Job K. Chirchir & 3 Others
    (2013) eKLR
  • Eldo City Ltd Vs. Corn Products Kenya Ltd & Another
    (2013) eKLR
  • Willy Kimutai Kitilit Vs. Michael Kibet
    Civil Appeal No. 51 of 2015
  • Macharia Mwangi Maina & 87 Others Vs. Davidson Mwangi Kagiri
    (2014) eKLR
  • Kiplagat Kotut Vs. Rose Jebor Kipngok
    [2019] eKLR
  • William Kipsoi Sigei Vs. Kipkoech Arusei & Another
    [2019] eKLR
  • Joyce Mugure Mwangi & 7 Others Vs. Joachim Ngugi Kiarie & 16 Others
    (2019) eKLR
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court under Article 162(2)(b) of the Constitution (as implied by the court's jurisdiction over land disputes; not expressly cited in the judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Chogi & 2 others (Personal Representatives of the Estate of Simon Chogi Gatuma - Deceased) v Kiragu (Environment & Land Case 189 of 2017) [2024] KEELC 3999 (KLR)", Case Analysis (2024). ELC 189 of 2017 (Thika). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/3999/eng@2024-05-16

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