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ELCDismissedNot stated in judgment

Muya (Suing through James Billy O Anunda, Meshack O Magati, John Muya) v Embakasi Developers LImited & another (Enviromental and Land Originating Summons 1002 of 2015) [2024] KEELC 6378 (KLR)

Environment and Land Court
26 September 2024
3,362 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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A Nairobi court refused to record a disputed land sale settlement, confirming that contracts for land in Kenya cannot be changed without both parties' written agreement.

What this practically means

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Executive summary

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This was a ruling of the Environment and Land Court at Nairobi, delivered by Lucy N. Mbugua, J on 26 September 2024, on the 1st Defendant's Notice of Motion dated 16 October 2023 under Order 25 Rule 5(1) of the Civil Procedure Rules. The 1st Defendant sought a declaration that it had compromised the suit with the Plaintiff, on terms that each member/occupier of the suit parcels (former LR Nos. 7109/3, 7109/4, 7109/5 and 7109/7) would have a right to purchase their plot at market price, that it would sell the 516 plots per the Plaintiff's August 2021 subdivision plan, that each buyer would complete within the agreed period failing which vacant possession would be surrendered, that the suit be marked settled, and that it abandon prayers in its counterclaim with each party bearing own costs. The Plaintiff opposed, maintaining the subsisting agreement dated 11 July 2019, varied on 9 October 2019, under which it would purchase the parcels for Kshs.800 million with Equity Bank financing; it denied any variation of price to Kshs.4 billion and contended the alleged JM7 document was misleading. The court held that the burden of proving compromise lay on the 1st Defendant; the alleged meeting of 13 August 2021 confirming a Kshs.4 billion price was unsupported by annexed evidence, and the disputed price variation could not be accepted. Applying the principle that a court cannot rewrite a contract, and noting the 9.10.2019 letter extended time, the court dismissed the application and ordered each party to bear their own costs.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the suit has been compromised by a lawful agreement between the Plaintiff and the 1st Defendant such that judgment in terms of the compromise should be recorded and the suit marked as settled

Key legal issues

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01

Whether the 1st Defendant proved a lawful compromise of the suit under Order 25 Rule 5(1)

Holding

The application failed; the alleged compromise was not proved as the purchase price variation was disputed and unsupported by evidence consented to by the Plaintiff

Reasoning

The 1st Defendant claimed a compromise allowing members to purchase plots at market price, relying on an alleged meeting of 13.8.2021 varying the price to Kshs.4 billion. That meeting's record was not annexed, and the referred document JM7 was not before the court. The Plaintiff maintained the subsisting agreement dated 11.7.2019 as varied on 9.10.2019 provided for Kshs.800 million for all 516 plots. Without consent, the court could not record a compromise.

p. 5
02

Whether the court can impose terms of settlement that vary a subsisting written contract for sale of land

Holding

No; the court cannot rewrite a contract, and a contract for sale of land can only be varied with agreement of both parties and in writing

Reasoning

Relying on Housing Company of East Africa Limited, the court held that where a contract is clear, its role is to interpret it as written. The 1st Defendant's proposal that it sell plots directly to members on willing buyer-willing seller terms varied the price term of the subsisting agreement without consent. Additionally, contracts for sale of land must comply with the Law of Contracts Act section 3(3). Entering judgment as prayed would amount to rewriting the agreement.

p. 6
03

Whether the agreement dated 11.7.2019 was terminated for failure to perform within time (time being of the essence)

Holding

Not determined in the Plaintiff's disfavour; the 1st Defendant's own letter of 9.10.2019 extended time, which the court found effectively extended the completion period

Reasoning

The 1st Defendant argued rescission by letters dated 26.11.2020 and 17.9.2021 citing time being of the essence. However, the court found that on 9.10.2019 the 1st Defendant ceded to the Plaintiff's request to subdivide and extended time, agreeing subdivision at Plaintiff's own cost. It relied on Mwangi v Kiiru that without a definite provision for payment, notice making time of the essence was required. This undercut the contention that the contract had terminated by effluxion of time.

p. 6

Legal principles established

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  • Where a suit has been adjusted wholly or in part by a lawful agreement or compromise, the court shall, on application, record the agreement and enter judgment accordingly.
  • A court cannot rewrite a contract between parties; a contract for the sale of land can only be varied with the agreement of both parties.

Court orders

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  1. 1.The 1st Defendant's Notice of Motion dated 16.10.2023 is dismissed
  2. 2.Each party shall bear their own costs of the application

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Order 25 Rule 5(1) of the Civil Procedure Rules

Relief refused

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Declaration that the 1st Defendant has compromised the suit, recording terms of sale of 516 plots at market price

No consent to the alleged compromise; entering judgment would amount to rewriting the parties' agreement

p. 6

Order that the suit be marked as settled

The burden of proving compromise was not discharged; the alleged price variation is disputed and undocumented

p. 6

Costs

Each party shall bear their own costs of the application

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

In the final analysis, I find that the application dated 16.10.2023 is not merited and the same is hereby dismissed. However, in the spirit of giving the parties a chance to explore even a partial settlement, I direct that each party shall bear their own costs of the application.
p. 6Final orders - dismissal of application to record compromise and costs
The 1st Defendant desires to sell plots to the Plaintifi's members directly on willing buyer willing seller basis. This is the proposal that the 1st Defendant wants this court to ratify. A situation that is certainly untenable in view of the fact that there is no consent to that efiect.
p. 6No consent to the alleged compromise
It is a well-known principle of law that a court cannot rewrite a contract between the parties.
p. 6Court's inability to rewrite contracts
Indeed, when a contract is clear and unambiguous, a court's role is to interpret the contract as written and not rewrite it because, just as with any other contract, a contract for the sale of land can only be changed with the agreement of both parties and not unilaterally
p. 6Interpretation of contracts for sale of land - adopted from Court of Appeal in Housing Company of East Africa Limited

Issues in the judgment

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minor

Text rendering errors throughout the judgment: the word 'Plaintiff' is consistently rendered 'Plaintifi' and 'ofier'/'ofiers' appear for 'offer'/'offers', which affects verbatim quotation fidelity

minor

The Plaintiff's submissions date is internally inconsistent, rendered as '27.5.224'

minor

The year of the letters varying the agreement is inconsistent, appearing as '9.10.2019' and '9.10.2010' in different passages

minor

Name of the Plaintiff's planner appears variously as 'Joash Ndorombori' and 'Joash Korombori'

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, "Muya (Suing through James Billy O Anunda, Meshack O Magati, John Muya) v Embakasi Developers LImited & another (Enviromental and Land Originating Summons 1002 of 2015) [2024] KEELC 6378 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/6378/eng@2024-09-26

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