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ELCStruck OutPetitioner's Notice of Motion dated 30/6/2022 (Petition dated 30th June 2022), Thika ELC· [2024] KEELC 4584 (KLR)

Murathi v Murathi & 4 others (Environment & Land Petition E008 of 2022) [2024] KEELC 4584 (KLR)

Environment and Land Court
3 June 2024
6,071 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~24 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court struck out a family land petition because a shareholder cannot sue personally over a company's property.

What this practically means

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Executive summary

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This is a ruling of the Environment and Land Court at Thika (G K Kemei J) on the Petitioner's Notice of Motion dated 30/6/2022 seeking interim conservatory orders restraining alienation of suit properties (subdivisions of Kiambaa/Ruaka/884 and Kiambaa/Muchatha T.328) and de bene esse evidence of her elderly mother, opposed by the 1st and 2nd Respondents' applications seeking striking out of the Petition. The 1st Respondent, claiming to be a co-wife of the Petitioner's late husband, argued abuse of process and sub judice, citing pending litigation including Thika Misc App. No. E040 of 2020 and Kiambu HC Civil Suit No. E029 of 2021 (O.S). The 2nd Respondent argued the Court was functus officio over parcels 3657 and 3658 following vesting orders of 4/11/2021, that Harrison Muhu Murathi (beneficiary of a registered trust over Muchatha T.328) was not joined, that the Petitioner lacked locus standi regarding Ruaka Estate Ltd, and that claims to Parcel 884 were time-barred. The Court struck out the Petition on three grounds: (1) the Petitioner, suing personally, lacked capacity to litigate claims over Company assets given the rule in Salomon and Foss v Harbottle; (2) the Petition failed the Anarita Karimi Njeru precision threshold and improperly invoked constitutional jurisdiction over what is essentially a land/fraud dispute requiring viva voce evidence; and (3) the Court was functus officio over parcels 3657 and 3658. The motions dated 18/7/2022 and 17/10/2022 were allowed, the Petition and the Petitioner's motion were struck out, with costs to the 1st and 2nd Respondents.

Key legal issues

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01

Whether the Petitioner had locus standi to sue in respect of Ruaka Estate Ltd's property claims

Holding

The Petitioner, suing in her personal capacity and not as a representative or trustee, lacks capacity to sue over the Company's assets; the Company is the proper party

Reasoning

The Company is a separate juristic person under the rule in Foss v Harbottle and Salomon. The Petition was brought personally, not as a representative suit or by a trustee. The company search confirmed the Company exists with the Petitioner as shareholder and director. Article 22 could not be invoked to cure this defect, and the question of proper parties affects jurisdiction in limine.

p. 10
02

Whether the Petition met the Anarita Karimi Njeru threshold for constitutional pleadings

Holding

It did not; the dispute is essentially a land/fraud dispute best determined in an ordinary civil suit, so constitutional jurisdiction was improperly invoked

Reasoning

Though fraud particulars were pleaded, the Petitioner did not with precision show which constitutional rights were breached and by whom. The reliefs sought (declaration of title, rectification, mesne profits) are statutory. Rival evidence requiring cross-examination is needed, which cannot be resolved on affidavit evidence in a petition.

p. 11
03

Whether the Court is functus officio regarding parcels Kiambaa/Ruaka/3657 and 3658

Holding

Yes; the Court had already determined Thika ELC Misc App. E040 of 2020 granting vesting orders and dismissed the Petitioner's review

Reasoning

The Court had determined the vesting order application pursuant to a trust registered on 22/1/2010. The Petitioner's attempt to set aside the orders by review was dismissed on 7/9/2022 and not appealed, leaving the Court functus officio over those parcels.

p. 11

Legal principles established

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  • A limited liability company is a separate legal person and is the proper plaintiff in respect of wrongs done to it
  • A petitioner must set out with precision the constitutional provisions infringed and the manner of infringement
  • Constitutional jurisdiction should not be invoked where adequate alternative statutory remedies exist

Court orders

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  1. 1.The Notice of Motions dated the 18/7/22 and 17/10/22 are allowed to the extent that the Petition and the Notice of Motion dated the 30/6/2022 be and are struck out
  2. 2.The costs shall be borne by the Petitioner in favour of the 1st and 2nd Respondents

Authorities

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Legislation

  • Constitution of KenyaArticle 22
  • Constitution of KenyaArticle 23
  • Constitution of KenyaArticle 40
  • Constitution of KenyaArticle 45
  • Constitution of KenyaArticle 47
  • Constitution of KenyaArticle 48
  • Constitution of KenyaArticle 58
  • Constitution of KenyaArticle 159
  • Civil Procedure ActSections 1A, 1B, 3A and 6
  • Environment and Land Court ActSection 13
  • Limitation of Actions ActSection 7
  • Mutunga RulesRule 10(2)

Cases cited (19)

  • Anarita Karimi Njeru Vs. Republic
    [1979] eKLR
  • Fred Munialo Maelo Vs. Mathew Wamalwa Wafula & 2 Others
    [2020] eKLR
  • Giella Vs. Cassman Brown & Co. Limited
    (1973) EA 358
  • Satya Bhama Gandhi Vs. Director of Public Prosecutions & 3 Others
    [2018] eKLR
  • Mohamed Feisal & 19 Others Vs. Henry Kandie, Chief Inspector of Police, OCS, Ongata Rongai Police station & 7 Others
    [2018] eKLR
  • Salomon Vs. A Salomon & Co Ltd
    [1896] UKHL 1, [1897] AC 22
  • Amin Akberali Manji & 2 Others Vs. Altaf Abdulrasul Dadani & Another
    [2015] eKLR
  • Foss vs. Harbottle
    [1843] 67 ER 189
  • Edwards Vs. Halliwell
    [1950] All ER 1064
  • Arthi Highway Developers Ltd Vs. Westend Butchery Ltd & 6 Others
    Civil Appeal No. 246 of 2013
  • Moir vs. Wallerstainer
    [1975] 1 All ER 849
  • Apex Finance International Limited and Another Vs. Kenya Anti-Corruption Commission
    NKU HC JR No. 64 of 2011 [2012] eKLR
  • Goodwill and Trust Investment Ltd and Another v. Witt and Bush Ltd
    Nigerian SC 266/2005
  • Christopher Mutiembu Machimbo & 3 Others Vs. County Surveyor, Trans-Nzoia & 4 Others
    [2022] eKLR
  • Mumo Matemu Vs. Trusted Society of Human Rights Alliance & 5 Others
    [2013] eKLR
  • Communications Commission of Kenya & 5 Others v Royal Media Services Limited & 5 Others
    [2014] eKLR
  • Kiambu County Tenants Welfare Association Vs. Attorney General & Another
    [2017] eKLR
  • Mugendi Vs. Japheth & 3 Others
    (Civil Appeal 65 of 2020) [2022] KECA 574 (KLR)
  • Gabriel Mutava & 2 Others Vs. Managing Director Kenya Ports Authority & Another
    [2016] eKLR
Jurisdiction invoked
Articles 22, 23, 40, 47 and 159 of the Constitution of Kenya; Sections 1A and 1B Civil Procedure Act; Section 13 of the Environment and Land Court Act

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, "Murathi v Murathi & 4 others (Environment & Land Petition E008 of 2022) [2024] KEELC 4584 (KLR)", Case Analysis (2024). Petitioner's Notice of Motion dated 30/6/2022 (Petition dated 30th June 2022), Thika ELC. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/4584/eng@2024-06-03

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