Ray Power Limited & another v Richmond Company Limited & another (Land Case 33 of 2022) [2024] KEELC 7060 (KLR)
The bottom line
#A Mombasa court ordered sellers to complete a land sale they tried to abandon, awarding the buyers ownership, an injunction, and full legal costs.
What this practically means
#Executive summary
#Key legal issues
#Validity of the sale agreement for land and its breach
The duly executed and attested sale agreement and deed of variation complied with Section 3(3) of the Law of Contract Act and Section 38 of the Land Act; the Plaintiffs performed their obligations and the Defendants breached the agreement by failing to complete the transfer.
The court noted that dispositions of land must comply with the writing and attestation requirements of Section 3(3) of the Law of Contract Act and Section 38 of the Land Act. The executed sale agreement, variation agreement, cheques and deed of acknowledgement were produced and uncontroverted. The defendants never entered appearance despite substituted service, so the plaintiffs' evidence stood unchallenged, proving payment of substantial consideration and the defendants' failure to furnish completion documents or execute transfers.
Whether the Plaintiffs are entitled to specific performance, permanent injunction and declaration of ownership
Specific performance was granted as the Plaintiffs performed their obligations, no adequate alternative remedy existed and no hardship was shown; the court declared the Plaintiffs bona fide owners and granted a permanent injunction under Sections 24, 25 and 26 of the Land Registration Act.
Relying on Reliable Electrical Engineers v Mantrac Kenya Ltd, the court applied the settled principles that specific performance is discretionary and premised on a valid enforceable contract. The Plaintiffs paid the deposit and consideration, held possession, and offered to deposit the balance in court. With the claims uncontroverted, the court declared the Plaintiffs bona fide owners whose indefeasible rights under the Land Registration Act justified a permanent injunction.
Legal principles established
#- In a formal proof hearing, a plaintiff must still satisfy the court on the truth of its claim; uncontroverted evidence must meet the balance of probabilities standard.
- Courts cannot rewrite contracts for parties or imply terms not agreed.
- Costs follow the event and the successful party is ordinarily entitled to costs.
Court orders
#- 1.Judgment entered in favour of the Plaintiffs as pleaded in the Plaint dated 22nd March, 2022
- 2.Permanent injunction restraining the Defendants, their agents and servants from subdividing, leasing, selling, disposing of or interfering with the Plaintiffs' rights to property MMS/BLOCK V/49
- 3.Order of specific performance of the Sale Agreement dated 27th January, 2017 as varied on 12th October, 2017
- 4.Declaration that the suit property belongs to the Plaintiffs
- 5.Costs of the suit borne by the 1st and 2nd Defendants jointly and severally and awarded to the Plaintiffs
- Jurisdiction invoked
- Original jurisdiction of the Environment and Land Court over land situated in Mombasa County
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ray Power Limited & another v Richmond Company Limited & another (Land Case 33 of 2022) [2024] KEELC 7060 (KLR)", Case Analysis (2024). Land Case No. 33 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/7060/eng@2024-10-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.