LWN v PLM & 3 others (Civil Appeal E738 of 2021) [2024] KECA 1954 (KLR) (20 December 2024) (Judgment)

Facts

W (W) filed a suit against the respondents seeking a declaration that the registration of the suit property in the names of M and G and the charging of the same in favour of Consolidated Bank and Equity Bank was illegal, null and void; an order for registration of the suit property in her name; and a permanent injunction to stop the respondents from alienating or interfering with the suit property. The suit property was lawfully transferred and registered in the name of M, lawfully charged in favour of Consolidated Bank, and lawfully sold to G by Consolidated Bank upon default.

Issues

1. whether the transfer of the suit property to M was fraudulent, null and void
2. whether the court order in question was issued on 26th March 2009 while the agreement for sale was dated 11th June 2009
3. whether non-joinder of the registrar was fatal to W's case
4. whether the sale of the suit property was in violation of the doctrine of lis pendens
5. whether M's default in servicing the loan was deliberate to sell the suit property to G

Reasoning

The court found that the transfer of the suit property to M was lawful and that W's suit did not disclose any cause of action against Consolidated Bank. The court also found that the sale of the suit property was not in violation of the doctrine of lis pendens and that W's claim was not based on fraud or illegality.

Outcome

Appeal dismissed

Authorities cited