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ELCAllowedELC E005 OF 2021 (OS)· [2024] KEELC 6893 (KLR)

Mungania (Suing as the administrator of the Estate of the Late M'Mungania M'Imbwi – Deceased) v Muriira (Sued as an administrator of the Estate of the Late Lawrence Muriira M'Thiruane – Deceased) & 2 others (Environment & Land Case E005 of 2021) [2024] KEELC 6893 (KLR)

Environment and Land Court
16 October 2024
1,860 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan court set aside a land judgment because the bank holding a charge over the property was never included in the case.

What this practically means

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Executive summary

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The Environment and Land Court at Meru (C K Nzili J) determined a notice of application dated 31.5.2024 by I & M Bank Ltd, an intended 3rd defendant. The bank sought joinder, setting aside of the judgment of 11.10.2023 and the consequential decree, leave to file a defense, a stay of execution, and an injunction restraining disposal of L.R No. Ntima/Ntakira/2591. The bank held a charge dated 24.11.2020 registered against the title to secure a loan of Kshs.2,000,000/=, in default of which the outstanding sum was Kshs.1,397,695.43 as of 28.5.2024. It said it had only recently discovered the suit, whose pendency the chargor had failed to disclose under clause 8(h) of the charge. The plaintiff opposed, relying on searches of 4.11.2020 showing no encumbrance and contending the charge was subject to an overriding interest under Section 28(h) of the Land Registration Act. The court applied Order 1 Rules 2 and 10 of the Civil Procedure Rules and the joinder principles in Kingori v Chege, holding that the bank had a protected chargee's interest under the Land Act and was a necessary party. The draft defense raised triable issues. The application dated 31.5.2024 was allowed, the judgment of 11.10.2023 and decree were set aside, the originating summons was to be amended to include the bank as 3rd defendant, timelines were set for responses, and costs were made costs in the cause.

Key legal issues

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01

Whether the holder of a registered charge is a necessary party to a suit affecting the charged land

Holding

Yes. The bank demonstrated the chargee's rights under the Land Act, which the 2nd defendant had not denied, making it a necessary party.

Reasoning

The court applied the Kingori v Chege principles and the liberal interpretation of Order 1 Rule 10. The charge registered on 24.11.2020 postdated the plaintiff's searches, so the plaintiff could not have known of it. Setting aside the judgment would strip the bank of its security, and its presence would enable complete adjudication and prevent proliferated litigation.

p. 4
02

Whether the judgment should be set aside and leave granted to file a defense

Holding

Yes. The draft defense raises triable issues and the applicant deserves a chance to ventilate it.

Reasoning

The court invoked the principle that the primary concern is to do justice to the parties and that a regular judgment will not be set aside unless there is a defense on merits raising a triable issue. It examined the draft defense, found triable issues, and noted the 2nd defendant knew of the encumbrance when authorizing the 1st defendant to plead for him.

p. 4

Legal principles established

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  • A chargee with a registered charge over suit land is a necessary party where cancellation of the chargor's title would strip the chargee of its security
  • Joinder principles under Order 1 Rule 10 should be interpreted liberally and widely so that all persons necessary for a complete adjudication are made parties

Court orders

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  1. 1.The application dated 31.5.2024 is allowed
  2. 2.The judgment dated 11.10.2023 and the subsequent decree are set aside
  3. 3.The originating summons dated 6.11.2020 shall be amended to include I & M Bank Ltd as the 3rd defendant and served upon the defendants
  4. 4.The defendants shall have 30 days to file and serve their responses within 15 days upon service with the amended originating summons
  5. 5.Costs of the application to be in the cause

Authorities

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Legislation

  • Land Registration ActSection 28 (H)
  • Land ActSection 88 (1) (g)
  • Civil Procedure RulesOrder 1 Rule 2
  • Civil Procedure RulesOrder 1 Rule 10 (2) and (4)
  • Constitution of KenyaArticle 50 (1)

Cases cited (10)

  • Kingori vs Chege & others
    (2002) 2 KLR 243
  • Pravin Bowry vs John Ward & another
    (2015) eKLR
  • CBK Ltd vs Trust Bank (K) Ltd
    (2000) eKLR
  • Lois Holdings Ltd vs Ndiwa Tamboi & 84 others; Chesitia Marketing Cooperative Society (proposed 2nd defendant)
    (2021) eKLR
  • Kenya Game Hunting Union vs Glory Gas Hire
    (2014) eKLR
  • Patel vs E.A Cargo Handling Service Ltd
    (1974) E.A 75
  • Richard Ncharpi Leiyagu vs IEBC & others
    (2013) eKLR
  • Deported Asians Property Custodian Board vs Jafier Brothers Ltd
    (1999) 1 E.A. 55
  • Civicon Ltd vs Kivumatt Ltd & others
    (2015) eKLR
  • Meme vs. Republic
    (2004) eKLR
Jurisdiction invoked
Order 1 Rules 2 and 10 of the Civil Procedure Rules; inherent discretion of the court on joinder and setting aside judgment

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Mungania (Suing as the administrator of the Estate of the Late M'Mungania M'Imbwi – Deceased) v Muriira (Sued as an administrator of the Estate of the Late Lawrence Muriira M'Thiruane – Deceased) & 2 others (Environment & Land Case E005 of 2021) [2024] KEELC 6893 (KLR)", Case Analysis (2024). ELC E005 OF 2021 (OS). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/6893/eng@2024-10-16

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