[2023] KECA 1382 (KLR)

[2023] KECA 1382 (KLR)

The Court of Appeal found that Kanyuuru was in breach of the sale agreement by failing to pay the balance of the purchase price within the stipulated timeframes, and his default was not excused by Mugambi's subsequent registration of a charge over the property. The evidence showed that Kanyuuru's failure to pay was...

Source-derived case information.

Citation
[2023] KECA 1382 (KLR)
Parties
Appellant: Charles Mwiti Mugambi; Appellant: Zakayo Kimathi Mungania; Respondent: Eric Mwenda Kanyuuru; Respondent: Chief Land Registrar; Respondent: Attorney General
Court
Court of Appeal
Court Station
Court of Appeal at Nairobi
Jurisdiction
Kenya
Case Number
Civil Appeal E380 of 2020
Procedural Posture
Civil Appeal / Judgment
Outcome
Appeal allowed in part; trial court judgment set aside; refund and injunction granted as specified.
Judges
K M'Inoti, F Tuiyott, GWN Macharia
Legal Topics
Specific Performance, Breach of Contract, Bona Fide Purchaser, Termination of Contract, Injunctions, Refund of Purchase Price
Source Language
en
Land and Property Civil Procedure Specific Performance Breach of Contract Bona Fide Purchaser Termination of Contract Injunctions Refund of Purchase Price

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Parties

Charles Mwiti Mugambi

Appellant

Zakayo Kimathi Mungania

Appellant

Eric Mwenda Kanyuuru

Respondent

Chief Land Registrar

Respondent

Attorney General

Respondent

Procedural Posture

Civil Appeal / Judgment

  1. 1 Who between Kanyuuru and Mugambi was in breach of contract?
  2. 2 If Mugambi was in breach, did he lawfully terminate the contract?
  3. 3 Was Mungania an innocent purchaser for value without notice?

Ratio Decidendi

The Court of Appeal found that Kanyuuru was in breach of the sale agreement by failing to pay the balance of the purchase price within the stipulated timeframes, and his default was not excused by Mugambi's subsequent registration of a charge over the property. The evidence showed that Kanyuuru's failure to pay was due to lack of funds, not protest over the charge. Mugambi, however, failed to lawfully terminate the contract as required by clause 3(c), since he did not refund the monies paid within the stipulated three months after the notice of termination. As a result, Mugambi was also in breach when he sold the property to Mungania. Nevertheless, Kanyuuru, being in default, was not...

Court Disposition

Appeal allowed in part; trial court judgment set aside; refund and injunction granted as specified.

Orders

  • Judgment entered for Eric Mwenda Kanyuuru against Charles Mwiti Mugambi for Kshs 7,500,000.00 with interest at court rates from the date of suit until payment in full.
  • Permanent injunction restraining Eric Mwenda Kanyuuru from trespassing or interfering with Zakayo Kimathi Mungania's possession of LR No 12672/51, Runda, Nairobi.