[2023] KEELC 20786 (KLR)

[2023] KEELC 20786 (KLR)

The court found that the lease agreement dated 1st September 2006 between the plaintiff and the 3rd defendant, though unregistered, was valid and enforceable as a contract for the purpose of exercising the option to purchase. The plaintiff properly exercised this option by giving notice and was entitled to specific...

Source-derived case information.

Citation
[2023] KEELC 20786 (KLR)
Parties
Plaintiff: Esther Muthoni Passaris; Defendant: Charles Kanyuga Maina; Defendant: Grace Wanjiku Kanyuga; Defendant: Alka Roshanlal Hanspal (As the Administrator of the Estate of the Late Kultar Singh Hanspal)
Court
Environment and Land Court
Court Station
Environment and Land Court at Nairobi
Jurisdiction
Kenya
Case Number
Environment & Land Case 1256 of 2014
Procedural Posture
Environment and Land Case / Judgment
Outcome
Judgment for the plaintiff; counterclaims by the 1st, 2nd, and 3rd defendants dismissed with costs to the plaintiff.
Judges
LC Komingoi
Legal Topics
Option to Purchase, Specific Performance, Bona Fide Purchaser, Lis Pendens, Title Rectification, Lease Agreements
Source Language
en
Land and Property Civil Procedure Option to Purchase Specific Performance Bona Fide Purchaser Lis Pendens Title Rectification Lease Agreements

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Parties

Esther Muthoni Passaris

Plaintiff

Charles Kanyuga Maina

Defendant

Grace Wanjiku Kanyuga

Defendant

Alka Roshanlal Hanspal (As the Administrator of the Estate of the Late Kultar Singh Hanspal)

Defendant

Procedural Posture

Environment and Land Case / Judgment

  1. 1 Whether there was a valid agreement with an enforceable option to purchase between the plaintiff and the 3rd defendant.
  2. 2 Whether the sale and transfer of the suit property to the 1st and 2nd defendants was valid.
  3. 3 Whether the 1st and 2nd defendants are bona fide purchasers for value and entitled to reliefs sought.

Ratio Decidendi

The court found that the lease agreement dated 1st September 2006 between the plaintiff and the 3rd defendant, though unregistered, was valid and enforceable as a contract for the purpose of exercising the option to purchase. The plaintiff properly exercised this option by giving notice and was entitled to specific performance. The subsequent sale and transfer of the suit property by the 3rd defendant to the 1st and 2nd defendants occurred during the pendency of litigation and in violation of the doctrine of lis pendens, as well as existing prohibitory and injunctive orders. The 1st and 2nd defendants failed to conduct adequate due diligence and were not bona fide purchasers for value...

Court Disposition

Judgment for the plaintiff; counterclaims by the 1st, 2nd, and 3rd defendants dismissed with costs to the plaintiff.

Orders

  • Declaration that the plaintiff has the right to exercise the option to purchase LR No. 7741/75 from the estate of the late Kultar Singh Hanspal (through the 3rd defendant) upon payment of Kshs. 35,000,000.
  • Order of specific performance compelling the 3rd defendant to transfer LR No. 7741/75 to the plaintiff upon payment of Kshs. 35,000,000 within ninety (90) days; in default, the Deputy Registrar to execute necessary documents.