[2006] KEHC 1751 (KLR)
The court found that both parties, as co-administrators, have a duty to preserve the estate and act in the beneficiaries' best interests. Given the estate's significant debt to the City Council of Nairobi and the risk of asset auction, the court determined that valuation of the assets is a necessary first step. The...
Source-derived case information.
- Citation
- [2006] KEHC 1751 (KLR)
- Parties
- Applicant: Shem Mzee Aflatoon; Respondent: Kanji Mzee Aflatoon
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Succession Cause 1532 of 2003
- Procedural Posture
- Succession Cause / Ruling on Summons for Valuation and Sale of Estate Assets
- Outcome
- Application partly allowed.
- Legal Topics
- Administration of Estates, Confirmation of Grant, Valuation of Estate Assets, Distribution of Estate, Estate Debts
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Shem Mzee Aflatoon
Applicant
Kanji Mzee Aflatoon
Respondent
Procedural Posture
Succession Cause / Ruling on Summons for Valuation and Sale of Estate Assets
Legal Issues
- 1 Whether the administrators should be permitted to value and sell the estate assets and distribute the proceeds as per the confirmed grant.
- 2 Whether the costs of valuation, sale, legal representation, and administration should be borne by the estate.
- 3 Whether the valuation should precede the sale of the estate assets.
Ratio Decidendi
The court found that both parties, as co-administrators, have a duty to preserve the estate and act in the beneficiaries' best interests. Given the estate's significant debt to the City Council of Nairobi and the risk of asset auction, the court determined that valuation of the assets is a necessary first step. The court ordered the administrators to value the three assets within 60 days and file the valuation in court, together with proposals for sale and distribution, for further determination. The court declined to grant immediate permission for sale, instead requiring a structured process to ensure transparency and proper administration. Costs of valuation are to be borne by the...
Court Disposition
Application partly allowed.
Orders
- Administrators are permitted to call in and value the three assets of the estate within 60 days.
- Valuation to be filed in court within 60 days with proposals on sale and distribution for court determination.
Full Case Text
Judgment text and source record
22 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT NAIROBI (NAIROBI LAW COURTS)
Succession Cause 1532 of 2003
IN THE MATTER OF THE ESTATE OFAFLATOON SINGH S/O PRITHI SINGH (DECEASED)
RULING
This is a Summons dated 22nd July 2005, filed by Meenye & Kirima advocates on behalf of the applicant on SHEM MZEE AFLATOON. It was filed under section 47 and 82(b) of the Law of Succession Act (Cap. 160) and Rule 73 of the Probate and Administration Rules. It seeks for two Orders, that –
1. the court do be pleased to permit the administrators, as personal representatives of the deceased, to call in, value and sell the thre assets of the estate and distribute the net proceeds thereof to the beneficiaries in terms of the ratios contained in the schedule to the certificate of confirmation of grant dated 2nd March 2005.
2. the costs of the valuation, sale, legal representation and administration be borne by the estate and be settled pit pf the proceeds pf the sale on priority.
The application has grounds on the face of the summons
And is supported by the affidavit sworn by the applicant SHEM MZEE AFLATOON on 22nd March 2005. The application is opposed and a replying affidavit sworn by KANJI MZEE AFLATOON on 18th May 2006 was filed.
At the hearing of the application on 23/5/2006 Mr. Meenye appeared for the applicant, while Mr. Oketch appeared for the respondent. He submitted of the applicant and died in 1964. The executors of the will died before administering the estate which had remained unadministered to date. The three plots in question were town plots and were to be shared within 3 houses. There were outstanding rates of about Kshs.600,000/= owned to the City Council of Nairobi. If the orders sought were not granted, the assets of the estate stood to be totally wasted. He contended that though the co-administrator objected to the application in his replying affidavit he did not suggest any other option or proposal that the fact that the estate owed Kshs.600,000/= to City Council of Nairobi.
Mr. Oketch for the objector submitted that his client was of the position that debts had to be collected for the sale of the properties. His client wanted valuation to be done first before considering the sale. Otherwise his client was not opposing the sale.
The applicant herein is seeking for orders of valuation of the assets of the estate, sale of the said assets, and distribution per the certificate of confirmation of grant issued by the court on 2nd March 2005. From the submissions of the respondent’s counsel, the respondent is not objecting to valuation of the assets or even the sale. However the respondent wants the valuation to be done first, then sale to be considered after valuation. It is agreed that the estate owes rates to the city counsel of Nairobi and assets are facing the risk of being auctioned. The applicant and respondent are co-administrators. Their function is to take action with best interests of the estate and the beneficiaries. The assets have already been distributed by four but are under threat from a third party. The respondent feels that outstanding rent due to the estate be collected first.
I have considered the application and the argument on both sides. I partly allow the application and order as follows –
1. The administrators as personal representatives of the deceased are permitted to call in and value the three assets of the estate, which they should do within 60 days from the date hereof.
2. Such valuation to be filed in court within the said period of 60 days from the date hereof with proposals on sale and distribution, for determination of the court.
3. The costs of valuation to be borne by the estate.
4. Either party is at liberty to apply to court for further orders or directions.
Dated and delivered at Nairobi this 26th day of June 2006.
George Dulu
Ag. Judge