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Court of AppealDismissedCivil Appeal No. 7 of 2012

Magdalene Jelagat Chemirmir & another (in their capacity as Administrators of the Estate of Jonah Kiplangat Chemirmir) v Dora Nyambura Maina & another [2015] KECA 448 (KLR)

Court of Appeal of Kenya
31 July 2015
2,819 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that a buyer who pays in full and occupies land beats anyone buying it later from the same seller.

What this practically means

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Executive summary

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This Court of Appeal at Nairobi (Karanja, Mwera and Otieno-Odek, JJ.A) dismissed a first appeal against the judgment of Muchelule, J. of the High Court at Nairobi (ELC Case No. 2950 of 1997, dated 21st September 2011), which had declared fraudulent, null and void the assignment of Plot No. 427/4 Type B, Umoja Phase II, Nairobi, to the late Jonah Kiplangat Chemirmir, and ordered registration of the plot in the name of the 1st respondent with a perpetual injunction. The appellants, administrators of the deceased's estate, contended that the deceased validly bought the plot from the 2nd respondent in 1994 for Sh.120,000. The court, conducting a fresh review of the recorded evidence, found the 1st respondent bought the plot from the 2nd respondent by agreement dated 9th June 1988 for Sh.30,500, paid the full price, took possession, built on the plot and cleared the City Council loan owed by the 2nd respondent. By the date of the later sale the plot was occupied and developed by the 1st respondent, facts reflected in the 'present state' clause of the 1994 agreement and the reference to buildings and improvements in the assignment instrument. The 2nd respondent therefore had nothing left to sell, and the second sale constituted fraud; the deceased could not claim to be a bona fide purchaser for value without notice. The court followed Benja Properties Ltd on priority of the first alienation. The appeal was dismissed with costs to the 1st respondent, and the High Court decision and orders confirmed.

Questions the Court framed

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

  1. 1.Who between the estate of the late Jonah Kiplangat Chemirmir and the 1st respondent is the owner of the suit property?

Key legal issues

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01

Ownership of the suit property as between the estate of the later assignee and the first purchaser in possession

Holding

The 1st respondent, who bought in 1988, paid the full price, took possession and developed the plot, holds the better title; the 1994 sale and assignment to the deceased passed nothing and was fraudulent.

Reasoning

The 2nd respondent was allotted the plot in 1988 and sold it to the 1st respondent the same year; the full purchase price was paid, possession delivered and the loan to City Hall cleared. By the time of the 1994 agreement the plot was occupied and developed by the 1st respondent, facts reflected in the 'present state' and 'buildings and improvements' clauses of the later documents. The second sale was therefore of an interest already exhausted and constituted fraud. The trial judge's findings were affirmed on this Court's own review of the evidence.

p. 5
02

Priority of the first alienation over a later allotment or assignment

Holding

Following Benja Properties, the first alienation of land takes priority; a later alienation of the same land is of no effect since there was nothing left to alienate.

Reasoning

The court invoked its own earlier decision in Benja Properties Ltd v Syedna Mohammed Burhannudin Sahed, where a first grant of lease ranked in priority over a later letter of allotment over the same land. Applying that principle, once the 2nd respondent had sold the whole premises in 1988, there was no remaining interest to assign to the deceased in 1994. The later assignment was accordingly void as against the 1st respondent.

p. 5
03

Whether the deceased could be a bona fide purchaser for value without notice

Holding

He could not; the agreement sold the plot 'in its present state' and the assignment instrument referenced buildings and improvements effected by the 1st respondent in possession, so the deceased had notice.

Reasoning

The sale agreement between the 2nd respondent and the deceased described the plot as being sold 'in its present state', and the instrument of assignment conveyed the plot 'together with the buildings and improvements erected and being thereon'. Those buildings and improvements were the 1st respondent's, dating from her 1988 purchase and occupation. The court held that both the seller and the deceased knew or must be taken to have known the state of the plot, defeating any claim of bona fide purchase without notice.

p. 5

Legal principles established

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  • A vendor who has sold his entire interest in land, been paid in full and delivered possession has no remaining interest capable of being sold or assigned to a third party; a second sale of the same property is fraudulent.
  • A purchaser in possession who has developed the land and paid the full price takes priority over a later assignee, who cannot claim to be a bona fide purchaser for value without notice.
  • On a first appeal the Court of Appeal is duty bound to conduct a fresh trial based on the recorded evidence and may arrive at its own conclusions.

Court orders

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  1. 1.The appeal is dismissed
  2. 2.The 1st respondent is awarded costs of the appeal
  3. 3.The decision and orders of the High Court are confirmed

The bench

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

majority
majority
majority
On appeal from
High Court of Kenya at Nairobi
ELC. Case No. 2950 of 1997
Jurisdiction invoked
First appeal to the Court of Appeal under the applicable appellate statutory framework (not expressly cited in the judgment)

Relief refused

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Setting aside the High Court judgment and an order for vacant possession in favour of the appellants

The 2nd respondent had sold his entire interest to the 1st respondent in 1988 and had nothing to sell to the deceased; the later sale and assignment amounted to fraud

p. 5

Costs

Appeal dismissed with costs to the 1st respondent.

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 result, we dismiss this appeal with costs to the 1st respondent. We therefore confirm the decision and orders of the High Court.
p. 5Final orders and affirmation of the judgment below
once the 2nd respondent sold the whole of the suit premises to the 1st respondent in 1988, he was paid in full and the 1st respondent took possession, he had nothing more to sell and therefore assign to the late Jonah Chemirmir
p. 5Exhaustion of vendor's interest upon completed first sale
We therefore, are unable to accept the argument that in the circumstances, late Chemirmir was a buyer for value without notice.
p. 5Bona fide purchaser without notice
This being the first appeal, we are cognizant of the principle that ours is a duty to conduct a fresh trial, based on the recorded evidence and we do not have to agree with the trial judge?s findings.
p. 3Duty of the first appellate court

Issues in the judgment

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minor

The 1st respondent's plaint, as summarised, states the agreement with the 2nd respondent was dated 9th June 1988 but the particulars of fraud assert the 2nd respondent 'sold the suit property in 1998 to her'; the evidence throughout establishes 1988 as the correct date.

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, "Magdalene Jelagat Chemirmir & another (in their capacity as Administrators of the Estate of Jonah Kiplangat Chemirmir) v Dora Nyambura Maina & another [2015] KECA 448 (KLR)", Case Analysis (2015). Civil Appeal No. 7 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2015/448/eng@2015-07-31

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