[2007] KEHC 2076 (KLR)
The court found that the administrators, James Peter Mathenyu and Teresia Wanjiku Ngugi, acted in contravention of Sections 82 and 95 of the Laws of Succession Act by selling estate property without court consent and failing to account for or distribute the proceeds among all beneficiaries. The administrators'...
Source-derived case information.
- Citation
- [2007] KEHC 2076 (KLR)
- Parties
- Applicant: Regina Ann Wairimu Mata; Respondent: James Peter Mathenyu; Respondent: Teresia Wanjiku Ngugi; Respondent: Cecilia Wanjiru Njoroge
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Succession Cause 3490 of 2004
- Procedural Posture
- Succession Cause / Ruling on Summons for Revocation of Grant
- Outcome
- Administrators found liable for breach of duty and required to refund sale proceeds; further hearing ordered before final distribution.
- Judges
- KH Rawal
- Legal Topics
- Revocation of Grant, Distribution of Estate, Administrator Duties, Fraud in Administration, Beneficiary Rights
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Regina Ann Wairimu Mata
Applicant
James Peter Mathenyu
Respondent
Teresia Wanjiku Ngugi
Respondent
Cecilia Wanjiru Njoroge
Respondent
Procedural Posture
Succession Cause / Ruling on Summons for Revocation of Grant
Legal Issues
- 1 Whether the administrators acted fraudulently in disposing of estate property without court consent or beneficiary agreement.
- 2 Whether the administrators failed to account for and properly distribute the proceeds of sale of estate property.
- 3 Whether the grant of letters of administration should be revoked or annulled due to misconduct by administrators.
Ratio Decidendi
The court found that the administrators, James Peter Mathenyu and Teresia Wanjiku Ngugi, acted in contravention of Sections 82 and 95 of the Laws of Succession Act by selling estate property without court consent and failing to account for or distribute the proceeds among all beneficiaries. The administrators' actions amounted to fraud and a breach of their fiduciary duties. The court held them liable to refund the sale proceeds to the estate and required them to propose a mode of distribution agreed by all beneficiaries. Before issuing a final order on distribution, the court directed a further hearing to allow parties to comment on the affidavit evidence regarding the use and...
Court Disposition
Administrators found liable for breach of duty and required to refund sale proceeds; further hearing ordered before final distribution.
Orders
- James Peter Mathenyu and Teresia Wanjiku Ngugi to refund the estate the amount of sale proceeds from Plot No.21 in Kiambu Town.
- Administrators to propose a mode of distribution of the sale proceeds agreed by all beneficiaries.
Full Case Text
Judgment text and source record
35 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT NAIROBI (NAIROBI LAW COURTS)
Succession Cause 3490 of 2004
IN THE MATTER OF THE ESTATE OF NJOROGE KAMURU - (DECEASED)
RULING
One Regina Ann Wairimu Mata filed a summons for revocation of grant seeking to annul and/or revoke the grant of Letter of Administration made to James Peter Mathenyu and Teresia Wanjiku Ngugi in Succession Cause No.118 of 1999 at Principal Magistrate’s Court at Kiambu.
James P. Mathenyu in the process took the lead in the case of the Respondents. One Cecilia Wanjiru Njoroge also joined on the side of the Respondents and have jointly sworn an affidavit on 26th October 2006.
After several affidavits filed from both sides, on 15th November, 2006 the parties agree that the estate be distributed as per paragraph 8 of the affidavit sworn by James Peter Mathenyu, Teresia Wanjiku Ngugi and Cecilia Wanjiku Ngugi and filed on the 26th October, 2006. The Objector Regina Mata was present and she consented to the above mode of distribution.
The said paragraph 8 is deponed as under:
(a) THAT L.R. NO. RIABAI/NDUMBERI/705 O.25 acres to be removed and to be registered in the name of Cecilia Wanjiru Njoroge absolute.
(b) THAT the half of the remaining 4. 75 acres to be divided and be registered in the names of GRACE WAIRIMU MATA, REGINA WAIRIMU MATAandMARY NJOK,jointly equal shares but the share of MARY NJOKI to be registered in the name of PETER MATHENYU to hold in trust for her.
(c)THAT the remaining half of 4. 75 acre to be registered in the names of:
TERESIA WANJIKU NGUGI - 2½ plots
JOHNSON NJOROGE - 2 plots
JOSEPH MBUGUA - 2 plots
MARY WAMBUI - 1 plot
GRACE WAIRIMU - 1 plot
CECILIA NGONYO - 1 plot
MARGARET NJOKI - 1 plot
(d) THATPETER JAMES MATHENYU and TERESIA WANJIKU NGUGI to account for the proceeds of Plot No.21 in Kiambu Town which forms part of the deceased estate.
What I gather from paragraph 8(b) aforesaid is that the three persons named share equally the half portion and the share of Mary Njoki be registered in the name of herself and Peter Mathenya who shall hold in trust for her.
Vide an affidavit filed on 13th December 2006, the aforesaid persons tried to account for their use of sale proceeds.
It is stated in paragraph 3 of the affidavit that the plot was sold for Shs.400,000/-. Out of the said sum James Peter Mathenyu received Shs.170,000 and used for medical treatment for Mary Njoki his mentally retarded sister.
Teresia Wanjiku received KShs.150,000 and invested the same in a butchery business (See paragraph 6).
It is finally stated that a sum of Shs.80,000 has yet to be paid by the purchaser.
These two deponents have not given any documents to prove the purchase price and also the expenses on medical treatment of Mary Njoki.
I do agree with Regina Ann Mata that the two administrators have committed acts of fraud by usurping the sale proceeds of Shs.400,000 for themselves and also of selling the estate property without consent and/or order of the court. They have contravened Section 82 and Section 95 of the Laws of Succession Act.
They have also not shared the sale proceeds amongst other beneficiaries without explanation and/or reasons.
In the circumstances I do hold the two, namely James Peter Mathenyu and Teresia Wanjiku Ngugi, liable to refund to the estate amount of sale proceeds and to propose mode of distribution of the said sale proceeds agreed by all the beneficiaries.
Before I give my final order on the distribution of the estate, I shall once again hear the parties to explain the comment as per the affidavit which I have enumerated hereinbefore.
Dated and signed at Nairobi this 27th day of February, 2007.
K.H. RAWAL
JUDGE
27. 2.07