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ELCPartially Allowed· [2024] KEELC 4010 (KLR)

Omar (Suing as legal representative of the Estate of Warsame Omar Farah) v Abdi & 4 others (Environment and Land Case E218 of 2020) [2024] KEELC 4010 (KLR)

Environment and Land Court of Kenya
6 May 2024
12,152 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~49 min to read original · ~4 min brief

The bottom line

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A Nairobi buyer who paid KES 15 million for land he didn't buy from the owner got his money back with interest but lost the land itself.

What this practically means

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Executive summary

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This was a land dispute over LR No. 37/714, Nairobi, originating from a plaint filed in 2020 by Warsame Omar Farah (since deceased and substituted by his son and legal representative). The plaintiff sought specific performance of a sale agreement dated 20th May 2011 with the 1st Defendant (Hathar Haji Abdi) over a one-acre portion, alternatively refund of the purchase price, adverse possession, injunctions and damages. The 2nd Defendant, the registered owner, counterclaimed for rent arrears of Kes.141,968,059/-, eviction and an injunction. The 1st, 3rd, 4th and 5th Defendants tendered no evidence. The court framed five issues. First, although the amended amended plaint lacked a verifying affidavit - which the court held was required of the operative plaint, rejecting the National Bank of Kenya case - the lapse was excused under Article 159(2)(d). Second, specific performance failed: the vendor was not the owner, the purchaser knew the property belonged to the 2nd Defendant who was not privy to the contract, and the property was charged to NCBA Bank, a non-party. Third, the refund claim of Kes.15,000,000 was not time barred, the debt having been acknowledged in letters of 2017 by the 1st Defendant's advocates, and succeeded with interest at 14% from 20th May 2011. Fourth, adverse possession failed as occupation was permissive and contractual, inconsistent with a specific performance claim. Fifth, the 2nd Defendant obtained a declaration that the agreement was illegal and unenforceable against it, vacant possession within 180 days (default: eviction), and a permanent injunction, but its rent arrears claim failed for want of proof and limitation. Each party was ordered to bear its own costs, the court finding the determination evenly balanced.

Key legal issues

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01

Whether failure to attach a verifying affidavit to an amended amended plaint renders the suit incompetent

Holding

Yes, the requirement applies to the operative plaint, but the failure was excusable under Article 159(2)(d) and the suit was not struck out

Reasoning

The court held Order 4 Rule 1(2) of the Civil Procedure Rules requires the operative plaint to be accompanied by a verifying affidavit, rejecting the Plaintiff's submission that only the original plaint required one. Amendments supersede the original plaint and its affidavit. However, invoking the Supreme Court's Moses Mwicigi decision and Article 159(2)(d), the court excused the lapse while warning counsel against flouting procedure.

p. 15
02

Whether the Plaintiff was entitled to specific performance

Holding

No; specific performance was refused

Reasoning

The vendor (1st Defendant) was never the registered owner, and the purchaser knew the property belonged to the 2nd Defendant, who was not party to the agreement - privity of contract bars enforcement against the 2nd Defendant. Further, the property is charged to NCBA Bank Kenya PLC, a non-party whose rights would be prejudiced without a hearing contrary to Article 50(1). Specific performance against the 1st Defendant would be futile as he does not own the property.

p. 16
03

Whether the refund claim was statute barred

Holding

No; the claim was not time barred and was meritorious against the 1st Defendant

Reasoning

Letters by M/s Mohammed & Muigai LLP Advocates (26th September 2017 and 7th December 2017) and by M/s Yunis & Associates (28th July 2017) acknowledged the debt and offered refund. Limitation runs from the last acknowledgement. The payment of Kes.15,000,000 was uncontroverted - the 1st Defendant filed no defence or evidence, and DW1 confirmed receipt. The claim for refund therefore succeeded against the 1st Defendant.

04

Whether the Plaintiff acquired title by adverse possession

Holding

No; adverse possession was not established

Reasoning

The Plaintiff admitted entering as a tenant, and in 2011 executed a sale agreement over the portion - inconsistent with hostile possession. A purchaser in occupation pending completion is there under the contract, not adversely, per Sisto Wambugu v Kamau Njuguna. The claims for specific performance and adverse possession are antithetical and cannot be pursued simultaneously. Reliance on Sections 7 and 12 of the Limitation of Actions Act therefore failed.

05

Whether the 2nd Defendant's counterclaim succeeded

Holding

Partially; declaration of illegality of the agreement, vacant possession and permanent injunction granted, but rent arrears claim failed

Reasoning

No tenancy agreement was produced; Section 3(3) of the Law of Contract Act requires interests in land dispositions to be in writing. Rent arrears (special damages) were not pleaded or proved - DW1 admitted the deceased collected the rents - and the claim was largely statute barred. However, the 2nd Defendant as registered owner under Sections 24 and 25 of the Land Registration Act is entitled to vacant possession and a permanent injunction.

p. 22

Legal principles established

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  • An amended or further amended plaint must be accompanied by its own verifying affidavit, because the amendment supersedes the original plaint and its verifying affidavit
  • A contract binds only the parties to it; the doctrine of privity of contract shields a non-party registered owner from specific performance of a sale agreement made by another
  • An acknowledgement of debt restarts limitation for a claim for refund of purchase price
  • A claim for specific performance and a claim for adverse possession are inconsistent and cannot be pursued simultaneously
  • A claim for rent arrears is a claim for special damages which must be specifically pleaded and strictly proved

Court orders

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  1. 1.Judgment for the Plaintiff: refund of Kes.15,000,000/= being the purchase price paid to the 1st Defendant
  2. 2.The refund of Kes.15,000,000/= shall attract interest at court rates (14%) w.e.f 20th May 2011 until payment in full
  3. 3.The refund shall be recovered from the 1st Defendant
  4. 4.The rest of the prayers at the foot of the amended amended Plaint are declined
  5. 5.Judgment for the 2nd Defendant on the counterclaim: a declaration that the agreement dated 20th May 2011 is illegal and unenforceable as against the 2nd Defendant
  6. 6.The Plaintiff to vacate and hand over vacant possession of the portion of the suit property under his occupation within 180 days from the date of the judgment
  7. 7.In default of vacating, the 2nd Defendant shall be at liberty to levy eviction and an eviction order shall issue
  8. 8.Costs/expenses of any eviction to be certified by the Deputy Registrar and recovered from the Plaintiff
  9. 9.Upon recovery of vacant possession, a permanent injunction to restrain the Plaintiff from entering upon or remaining on LR No. 37/714 or any portion thereof
  10. 10.Any other relief at the foot of the counterclaim not expressly granted is dismissed
  11. 11.Each party to bear their own costs

Authorities

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Legislation

  • Civil Procedure Rules, 2010Order 4 Rule 1(2)
  • Civil Procedure Rules, 2010Order 37 Rule 7
  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 50(1)
  • Limitation of Actions Act, Chapter 22, Laws of KenyaSection 4(1)
  • Limitation of Actions Act, Chapter 22, Laws of KenyaSections 7 and 12
  • Law of Contract Act, Chapter 23, Laws of KenyaSection 3(3)
  • Land Registration Act, 2012Sections 24 and 25
  • Civil Procedure Act (Cap 21)Sections 1A and 1B
  • Appellate Jurisdiction Act (Cap 9)Sections 3A and 3B

Cases cited (32)

  • South Nyanza Sugar Company Ltd v Dickson Aoro Owuor
    [2017]eKLR
  • Zion Mall Ltd v Mohammed Jama Abdi
    [2017]eKLR
  • Limuru Tiibiya General Stores Ltd v Peter Ng'ang'a & Another
    [2020]eKLR
  • Quin & Asktons v Salmon
    [1989] AC
  • Leonards Carrying Company Ltd v Asiate Petroleum Company
    [1915] AC 705 HL
  • HL Blton [Engineering] Co Ltd v T. L Graham & Sons Ltd
    [1957] CA 159
  • James Maina Kinya v Gerald Kwendaka
    [2018]eKLR
  • National Bank of Kenya Ltd v Bernard Onkoba Tinega T/a Betico Auctioneers & 2 Others
    [2004]eKLR
  • Chevron Kenya Ltd v Harrison Charo Wa Shutu
    [2016]eKLR
  • Kenya Power & Lighting Company Ltd v Nathan Karanja Gachoka & Another
    [2016]eKLR
  • Gichinga Kibutha v Caroline Nduku
    [2018]eKLR
  • Reliable Electrical Engineering Company Ltd v Mantrac Kenya Ltd
    [2006]eKLR
  • Njoki Wainaina v Josphat Thuo Githachuri & 3 Others; National Land Commission & Another (Interested Party)
    [2021]eKLR
  • Oriental Commercial Bank Ltd v Shashiskant Chandubhai Patel
    [2011]eKLR
  • Delphis Bank Ltd v Asudi [K] Ltd & Another
    HCC No 82 of 2003 [UR]
  • Nicholas Kiptoo Korir Arap Salat v Independent Electoral and Boundaries Commission and 7 Others
    [2013]eKLR
  • Moses Mwicigi & Others v The IEBC
    [2016]eKLR
  • Kakuta Maimai Hamisi v Peris Pesi Tobiko & 2 Others
    [2013]eKLR
  • Mumo Matemu v Trusted Society of Human Rights Alliance & 5 Others
    Civil Appeal No. 290 of 2012
  • Savings & Loan (K) Limited v Kanyenje Karangaita Gakombe & Another
    [2015]eKLR
  • Agricultural Finance Corporation v Lengetia Ltd
  • Standard Chartered Financial Services Limited v Manchester Outfitters Limited (now Kings Woolen Ltd)
    [2016]eKLR
  • The Speaker, Kisumu County Assembly v The Clerk, Kisumu County Assembly Service Board and Others
    [2015]eKLR
  • Sisto Wambugu v Kamau Njuguna
    [1983]eKLR
  • Catherine Koriko & 3 Others v Evaline Rosa
    [2020]eKLR
  • Kuria Kiarie v Sammy Magera
    [2018]eKLR
  • Capital Fish Kenya Ltd v Kenya Power & Lighting Company Ltd
    [2016]eKLR
  • Gathoni v Kenya Cooperative Creameries
    [1982]eKLR
  • Mohansons (Kenya) Limited v Registrar of Titles & 2 Others
    [2017]eKLR
  • Anerita Karimi Nejru v A.G
    No. 1 (1979) KLR 154
  • Moya Drift Farm Ltd v Theuri
    (1973) EA 114
  • Jasbir Singh Rai and 3 Others v Tarlochan Singh Rai and 4 Others
    [2014]eKLR
Jurisdiction invoked
Original civil jurisdiction (land dispute; suit commenced by plaint; no constitutional/statutory basis invoked)

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, "Omar (Suing as legal representative of the Estate of Warsame Omar Farah) v Abdi & 4 others (Environment and Land Case E218 of 2020) [2024] KEELC 4010 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/4010/eng@2024-05-06

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