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Court of AppealDismissedCivil Appeal 23 of 1983

JULIUS COSMAS MBITHI v JOHN WALLACE MATHARE [1986] KECA 13 (KLR)

Court of Appeal
7 April 1986
2,257 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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The Court of Appeal ruled a vendor who blocks a property sale cannot then punish the buyer for failing to pay the balance.

What this practically means

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Executive summary

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The appellant, Julius Cosmas Mbithi, appealed against the judgment of Cockar J in the High Court at Nairobi (Civil Case 1356 of 1977, delivered December 9, 1980), in which the court held that Marcella Mbithi was not a joint owner of the suit property, that the sale agreement to the respondent Mathare was not validly rescinded, refused an injunction and a declaration of illegal occupation, ordered the Mbithis to vacate, and awarded Mathare costs. The crossclaims for damages were adjourned for a future hearing. Only Julius Cosmas Mbithi appealed, on five grounds principally attacking Mathare's entitlement to possession before paying the full balance, the computation of the balance, and his own continued occupation. Kneller JA, delivering the judgment of the court with Gachuhi Ag JA agreeing, dismissed all the grounds. He held that the trial judge made no finding on Mathare's entitlement to occupy by April 8, 1977, so the first ground failed; and that since the Mbithis had refused clear title and would not accept the balance after March 26, 1977, they could not complain of non-payment, applying Rightside Properties v Gray and Thomas Joseph Openda v Peter Martin Ahn. The judgment and orders of the High Court were upheld, the appeal was dismissed with costs, and the parties were left at liberty to return to the High Court on the adjourned crossclaims for damages, on which there was nothing to appeal from.

Questions the Court framed

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

  1. 1.Whether Mathare was entitled to enter into possession of the suit premises in April 1977 before paying the balance of the purchase price
  2. 2.Whether the balance of the purchase price was Kshs 144,087.50 or a larger amount
  3. 3.Whether Mathare was entitled to vacant possession following payment of Kshs 144,087.50 into court on August 24, 1977
  4. 4.Whether Mbithi caused or delayed Mathare's payment of the balance of the purchase price
  5. 5.Whether Mbithi remained in possession unlawfully after the balance was paid into court

Key legal issues

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01

Whether Mathare was entitled to enter into possession before completing payment

Holding

The first ground of appeal fails because the trial judge made no finding that Mathare was or was not entitled to occupy the premises by April 8, 1977.

Reasoning

The trial judge found it common ground that Mathare, with his contractor, completed the main building and occupied it by April 8, 1977, but made no finding on his entitlement to do so. Without such a finding, the appellant's first ground of appeal could not succeed on appeal.

p. 5
02

Whether the vendor could complain of non-payment of the balance after refusing to complete

Holding

The vendor, having pulled out of the agreement and refused clear title or acceptance of the balance, could not impugn the purchaser's failure to pay the disputed balance; the dispute as to the exact balance was one for a simple account.

Reasoning

Applying the reasoning in Rightside Properties v Gray, a vendor who has made performance futile cannot huff the purchaser for failing to carry out a useless exercise. The Mbithis could not and would not give clear title or accept any part of the balance after March 26, 1977, so the remaining grounds of appeal lacked merit.

p. 5
03

Whether the adjourned crossclaims for damages were before the appellate court

Holding

Because the trial judge expressly adjourned the crossclaims for damages to a future hearing, there was nothing to appeal from on those issues.

Reasoning

The trial judge's judgment expressly adjourned consideration of damages under prayer (e) of the plaint and prayer 9(a) of the counterclaim. Liability and quantum therefore remained to be determined in the High Court, and the parties were at liberty to return there on all the issues in the crossclaims for damages.

p. 5

Legal principles established

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  • A purchaser who has paid the balance of the purchase price into court is entitled to vacant possession, and a vendor who has made completion impossible cannot rely on the purchaser's failure to perform a futile act.

Court orders

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  1. 1.The appeal is dismissed with costs
  2. 2.The judgment and orders of the High Court are upheld
  3. 3.The parties are at liberty to return to the High Court on all the issues in the crossclaims for damages

The bench

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

majority

Wrote the judgment

majority
On appeal from
High Court of Kenya at Nairobi
Civil Case 1356 of 1977
Jurisdiction invoked
First appeal to the Court of Appeal from the judgment of the High Court

Relief refused

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Declaration that Mbithi was entitled to vacant possession

The appellant was not entitled to vacant possession at the time of filing the suit and no longer wished to re-enter the premises

p. 5

Dismissal of Mathare's counterclaim with costs

Mathare was entitled to his order for vacant possession against the Mbithis and the High Court orders stood

p. 5

Appeal against the adjourned crossclaims for damages

The crossclaims for damages were expressly adjourned by the trial judge, so there was nothing to appeal from on those issues

p. 5

Costs

The appeal is dismissed with costs

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 short, then, the judgment and orders of the High Court should be upheld and the appeal dismissed with costs.
p. 5disposition - appeal dismissed
As Gachuhi, Ag J A agrees, the order of the court is that the appeal is dismissed with costs.
p. 5final orders of the court
This is the morality of a game, not of a serious legal contest.
p. 5vendor cannot rely on purchaser's futile failure to perform
all along the Mbithis could not, would not give clear title or accept the balance or any part of the balance after March 26, 1977 when Mbithi decided to 'pull out of the agreement'
p. 5vendor's repudiation defeats complaint of non-payment
because the crossclaims for damages have been expressly adjourned for another day by Mr. Justice cockar there was nothing to appeal from on those issues
p. 5no appeal lies on matters expressly adjourned below

Issues in the judgment

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minor

The coram is unclear: only Kneller JA's judgment is signed, and Gachuhi Ag JA's concurrence is recorded only within the body of that judgment.

minor

The judgment inconsistently records the date of payment into court as August 12, 1977 in the summary of the defence and August 24, 1977 elsewhere.

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, "JULIUS COSMAS MBITHI v JOHN WALLACE MATHARE [1986] KECA 13 (KLR)", Case Analysis (1986). Civil Appeal 23 of 1983. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1986/13/eng@1986-04-07

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