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ELCDismissedIten ELC Appeal (No. not stated in judgment)· [2024] KEELC 4967 (KLR)

Kotut v Kirui & another (Environment and Land Appeal E004 of 2023) [2024] KEELC 4967 (KLR)

Environment and Land Court
13 June 2024
4,158 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court confirmed that a land title obtained through fraud can be cancelled, even years later, because time limits start only when fraud is discovered.

What this practically means

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Executive summary

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This is a first appeal to the Environment and Land Court at Iten against the judgment of Hon. Charles Ariba Kutwa, Senior Magistrate, delivered on 6th September 2023 in Iten SPM ELC Case No. 24 of 2018, which allowed the plaintiff's suit. The trial court had declared the plaintiff the bona fide owner of parcel Kabiemit/Flax Block 1 (Chepkorio)/163, ordered cancellation of the subdivision creating parcel 512, and restrained the 1st defendant from dealing with the excised portion. The appellant advanced three grounds: that the claim was time barred under Section 7 of the Limitation of Actions Act; that the plaintiff failed to prove his case to the required standard, particularly the pleaded fraud; and that the court lacked jurisdiction by dint of Section 76 of the Cooperative Societies Act. Re-evaluating the evidence as a first appellate court, Waithaka J found that the appellant was not a member of Chepkorio Farmers' Cooperative Society; that plot 512 was hived off the respondent's parcel by the society's committee without member approval at an annual general meeting as required by Sections 27 and 28 of the Cooperative Societies Act; that no sale agreement or proper receipts supported the transaction; and that the area in the title (0.4047 ha) was unsupported by the register (0.375 ha). The title was therefore tainted by fraud challengeable under Section 26(1)(a) of the Land Registration Act. On limitation, time ran from discovery of the fraud in 2010. On jurisdiction, the dispute concerned ownership of land, not a member-society dispute, so the court rather than the Cooperative Tribunal had jurisdiction. The appeal was dismissed with costs to the plaintiff/respondent.

Key legal issues

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01

Validity of the appellant's title to parcel 512

Holding

The title was tainted by fraud to which the appellant was a party and was challengeable under Section 26(1)(a) of the Land Registration Act, 2012.

Reasoning

The appellant was not a member of the cooperative society; the hiving off of plot 512 from the respondent's parcel was done by the society's committee without member approval at an annual general meeting; no sale agreement or proper receipts existed; the title's area (0.4047 ha) was unsupported by the members' register (0.375 ha); and the minutes bore overwriting. The trial magistrate's finding of fraud was amply supported by the re-evaluated evidence.

p. 8
02

Limitation

Holding

The suit was not time barred because time began to run only upon discovery of the fraud in 2010.

Reasoning

Applying Section 26 of the Limitation of Actions Act in the special circumstances of fraud, the respondent gave unchallenged evidence that he only became aware of the fraud in 2010, and he filed suit promptly thereafter; Section 7 was therefore no bar.

p. 8
03

Jurisdiction of the court vis-à-vis the Cooperative Tribunal

Holding

The court, not the Cooperative Tribunal, had jurisdiction because the dispute concerned ownership of land.

Reasoning

Section 76 of the Cooperative Societies Act covers disputes between a cooperative society and its members touching the business of the society. This suit sought declarations and rectification of a land register, a matter outside the Tribunal's remit; the trial court therefore properly entertained it.

p. 8

Legal principles established

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  • A first appellate court will not ordinarily interfere with findings of fact by the trial court unless they were based on no evidence, on misapprehension of the evidence, or on wrong principles.
  • A title procured by fraud to which the registered proprietor was a party is challengeable under Section 26(1)(a) of the Land Registration Act, 2012.
  • Where fraud is discovered only later, time under Section 7 of the Limitation of Actions Act begins to run from discovery.
  • A dispute touching on ownership of land falls to be determined by the court and not the Cooperative Tribunal under Section 76 of the Cooperative Societies Act.

Court orders

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  1. 1.The appeal is dismissed with costs to the plaintiff/respondent

Authorities

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Legislation

  • Cooperative Societies ActSections 27, 28, 17, 76
  • Limitation of Actions ActSections 7, 26
  • Registered Land Act (repealed)Section 32(2)
  • Civil Procedure Rules, 2010Order 21 Rule 6
  • Land Registration ActSection 26(1)(a) and (b)
  • Law of Contract ActSection 3(3)
  • Land Control ActSections 6 and 7
  • Cooperative Societies RulesRule 13(2)

Cases cited (15)

  • Dubai Bank Kenya Ltd v. Kwanza Estates Ltd
    (2015) e KLR
  • Rubo Kipngetich Arap Cheruiyot v. Peter Kiprop Rotich
    (2013) e KLR
  • Kivindu & Another v. Musau & 4 others
    (Civil Appeal 233 of 2020) (2023) KECA 1015 (KLR) (28 July 2023)
  • Central Bank of Kenya Ltd vs. Trust Bank Ltd & 4 others
    Nairobi CA No. 215 of 1996 UR
  • Munyu Maina vs. Hiram Githiha Maina
    (2009) e KLR
  • Elijah Makeri Nyangwra vs. Stephen Mungai Njuguna & Another
    (2013) e KLR
  • Mary Wanjiku Kihugu & 6 Others vs. Regency Cooperative Savings and Credit Society Limited
    (2021) e KLR
  • Rainald Schumacher vs. Aubrey Garth Monsey
    (2008) e KLR
  • Laikipia Mifugo Co. Ltd vs. Nanyuki Ranching Co. Ltd
    (2007) e KLR
  • John Michael Wanjao vs. Alubala Abanayo and Arubi
    (2011) e KLR
  • Freizer Mumo vs. Jonah Kariithi Daniel and Magdalene Wayua Daniel (Sued as the Representative of the estate of Daniel Mulwa & 3 others)
  • Kennedy Kimani Ndarwa v. Methi & Methi Swami Farmers Cooperative Society Limited & another
    (2016) e KLR
  • Selle & another vs. Associated Motor Boat Co. Ltd
    (1968) E.A 123
  • Mwanasokoni vs. Kenya Bus Service Ltd
    (1982-88) 1 KAR
  • Kiruga vs. Kiruga & Another
    (1988) KLR 348
On appeal from
Senior Principal Magistrate's Court at Iten
Iten SPM ELC Case No. 24 of 2018
Jurisdiction invoked
First appellate jurisdiction over the magistrate's court (Environment and Land Court); appeal against judgment in Iten SPM ELC Case No. 24 of 2018

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, "Kotut v Kirui & another (Environment and Land Appeal E004 of 2023) [2024] KEELC 4967 (KLR)", Case Analysis (2024). Iten ELC Appeal (No. not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/4967/eng@2024-06-13

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