Professional Documents
Culture Documents
(e-mail: nylex3@gmail.com)
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STRUCTURE OF PAPER:
It discusses same most of topics as previous articles by the author. However, while article is brief
for general knowledge, this is in detail like a thesis with case laws and therefore ideal as
reference for members of Bar and Bench.
Although the Registration of Titles Act (Cap 281) (RTA) has been replaced by Land Registration
Titles Act (3 of 2012) (LRA), the discussion herein is based on RTA. This is because LRA is
substantially similar to RTA as most of principles of Torrens system, like RTA, are also
incorporated in it. A table in Section 2(c) herein for a quick reference contains cross reference of
relevant sections between RTA and LRA.
Layout of this Paper: It has been arranged for an easy reading with an Master Index (Appendix
A), Index with Digest of content for quick reference (Appendix B) and at the bottom List
of cited cases or authorities with Digest (Section 19)
C O N T E N T S
Appendix: A
MASTER INDEX
Reference: LRA replaced RTA , RLA and other land Acts. RTA = Registered Titles Act (Cap
281), Registered Land Act (Cap 300) and Land Registration Act (3 of 2012)
Appendix A: Master Index
SECTIONS:
1. Brief introduction of Law – concept of Torrens system as incorporated in RTA and LRA
2. Profile of new Land Registration Act (3 of 2012) – Saving provision RTA v LRA: RTA
continue to apply to past transactions – LRA similar to RTA incorporating cardinal
principles of Torrens system.
3. RLA compared with RTA and LRA – unlike RLA, common law and equity do not
apply to RTA and LRA and both first and subsequent titles indefeasible.
4. Philosophy of RTA and Torrens system of title – doctrine of indefeasibility of title and
concept of ‘curtain and mirror
5. Common law and equity do not apply to RTA – title from void instrument valid – forger
can transfer a valid title – Common law doctrine “non dat qui non habet’ does not apply
to RTA:
6. UNDER RTA TITLE CAN NEVER EVER BE NULLITY AB INITIO: Last buyer’ title
ORIGINAL GRANT as such buyer not concerned about past irregularities and
illegalities
7. For quick reference excerpts from selected cases
8. Under Article 40(6) of current Constitution tendency of Court to declare title nullity ab
initio
9. Registrar’s duty to scrutinize instrument before registering – registration procedure
internal department matter.
10. Register and not certificate constitutes title because title by registration
11. BURDEN OF PROOF OF FRAUD HIGHER AND DEGREE OF DILIGENCE LOWER
– a. because of concept of indefeasibility of title. b. Burden of proof is on who alleges
fraud.
12. RTA overrides other Acts and laws so that concept of Torrens system not undermined.
13. Buyer entitled to property and original owner compensation – how quantum of damages
computed.
14. A bona fide buyer not liable for loss and cost of suit to anyone including First to
Defendant
15. No rectification of title once bona fide buyer is registered – limitation registrar’s Powers
16. Under RTA possession passes with registration of transfer
17. Exception to indefeasibility of title – there cannot ever be two concurrent titles.
18. LIST OF CASES AND AUTHORITIES CITED IN PAPER WITH DIGEST
19. DETAIL EXPOSITION OF LAW ON INTER[PRETAION OF CONSTITUTION
WITH REFERENCE TO TORRENS SYSTEM – WHY UNDER ARTICLE 40(6)
TITLE CANNOT BE NULLITY AB INITIO
Appendix: B
02 Profile of new Land Registration Act (3 of 2012) : (a) Saving provision RTA v LRA: Under
s.107(1) of LRA, RTA continue to apply to all prior transactions, and (b) LRA similar to RTA as it
incorporates most of basic principles of Torrens i..e indefeasibility or title being absolute upon
registration, buyer takes title at its face value and is not concerned about the past records, to ensure
title is absolute, its not subject to common law, equity and any conditions or contingencies, in the
event of conflict with other laws, it prevails, title cannot be rectified, once bona fide buyer for value
has acquired it, register and not certificate is title, and because Govt being sole custodian and
responsible to scrutinize records, it is obliged to compensates original owner who is deprived of
property or and also indemnify anyone who suffers loss due to the negligent of officials. Under s.106
of LRA, transactions that arose prior to repeal to continue to be subject to RTA
.
03 RLA compared with RTA and new LRA: Unlike RLA, RTA and LRA (a) are pure breed of
Torrens system, (b) common law and equity do not apply to them - as such title from a void or forged
instrument is valid and (c) apart from first all subsequent registration are also indefeasible.
Philosophy of RTA and Torrens system of title -doctrine of indefeasibility of title; In Regal
Constellation Hotel Ltd Re 2004 CanLII 2006 Ontario C.A.) Pge13 para 42 (case is
attached) “The philosophy of land titles system embodies three principles, namely, the mirror
principle, where the register is a perfect mirror of the state of title; the curtain principle, which holds
04 that a purchaser need not investigate the history of past dealings with the land, or search behind the
title as depicted on the register; and the insurance principle, where the state guarantees the accuracy of
the register and compensates any person who suffers loss as the result of an inaccuracy.” These
principles form the doctrine of indefeasibility of title and is the essence of the land titles system.
“ S.23(1) assures buyer indefeasible and sanctity of title - under s.22(3) last buyer's title deemed
original grant thereby extinguishing all past titles - as such buyer not concerned about past records and
entitled to property - under s.24(2) original owner's right to property is converted to right to
compensation - recent C of A case reaffirms all the doctrines of Torrens system.
05 Common law and equity do not apply to RTA: As such, common law doctrine “non dat qui non
habet’ does not apply to RTA and therefore transfer from void instrument or forger valid – buyer’s
title better than that of original owner
UNDER RTA TITLE CAN NEVER EVER BE NULLITY AB INITIO: This is because under s.
22(3) of RTA last buyer's title deemed ORIGINAL GRANT thereby extinguishing all past title
06 including of original owner - also because common law doctrine of seller cannot give better title than
he has does not apply to RTA forger can transfer valid title - In a Uganda case with similar facts to
subject suit of irregular issue of provisional cert of title and forged transfer, it was held buyer's
title valid, original owner's right to possession converted to right for compensation - and
provisional certificate replaced previous certificate.
07 This section has detail excerpts from selected cases for quick reference
08 Under Article 40(6) of current Constitution tendency of Court to declare title nullity ab
initio: By taking literal meaning of Article 40(6) which states, ‘The rights under this Article do not
extend to any property that has been found to have been unlawfully acquired’. However no such
provision in repealed Constitution which applied to subject suit - current Constitution no retrospective
effect. FOR DETAIL EXPOSITION OF INTERPRETATION OF CONSTITUTION SEE AT THE
BOTTOM SECTION 19
09 Registrar’s duty to scrutinize instrument before registering - Registration procedure internal
department matter: under s.32 RTA interest in instrument passes upon registration - under repealed
GLA, passed upon execution - recent C of Appeal judgment confirms, , "Govt is the sole keeper of all
the records and guarantees indefeasibility of title against entire world and if anyone suffers loss due to
the malfeasance of Land Department, Govt compensates" - hence buyer not concerned of past
Register and not certificate constitutes title because title by registration: In Breskvar v Wall
(1971) 126 CLR (High Court Aus) - “The Torrens system of registered title ...is not a systemof
10 registration of title but a system of title by registration. That which the certificate of title describes is
not the title which the registered proprietor formerly had, or which, but for registration would have
had." Under s.32 of RTA interest passes only upon registration - s.23 deems certificate conclusive
merely as proof in the court to avoid registrar producing record in the court - s. 71 provisional cert as
effective as original - see Uganda case with similar facts as subject suit confirming this. Hence, if a
cert is lost, destroyed and duplicate issued by forgery, it does not affect the status of the register of title
in any respect.
Burden of proof of fraud higher and degree of diligence lower to preserve doctrine of
indefeasibility - Burden of fraud on who alleges - 1st Def alleged fraud but in breach of pleading
11 rules did not adduce even one iota evidence of fraud by way of witness or document, thereby costly
trial was unnecessarily prolonged - To be diligent, a buyer is not required to do anything more than
follow a normal procedure. A bona fide buyer is liable only for ‘willful blindness’. A person who
presents for registration a document which is forged or has been fraudulently or improperly obtained is
not guilty of fraud if he honestly believes it to be a genuine document which can be properly acted
upon - Plaintiff followed all normal procedure and because of due diligence it took over 6 months
instead of normal 2-3 months to complete transaction
12 RTA overrides other Acts and laws so that concept of Torrens system not undermined: Relevant
s.1(2): Its to preserve 'sanctity of title' - What it means is that, if a provision of any Act is repugnant to
RTA, unless it itself expressly refers to the RTA, the provision of RTA would prevail over that Act.
Buyer entitled to property and original owner compensation - how quantum of damages
computed: s. 22(3) last buyer's title deemed original grant thereby extinguishing all past titles
including of original owner - s.23 bestows on buyer indefeasibility of title - as such s.24 specifically
provides for compensation to original owner deprived of property due to malfeasance of registrar -
13 thereby owner's right to property is converted to right for compensation - effectively owner suffered
suffers no economic loss as paid full damages as in the case of compulsory acquisition - like
in compulsory acquisition prop taken in public interest, under RTA also orig owner's prop taken in
the interest of public at large as it is to prevent each buyer going through arduous and costly exercise
to scrutinize title - e.g. it is like, instead of millions of passengers each time flying on a plane
scrutinizing if plane was in good condition or pilot was sober, this responsibility is put on the owner of
plane. As such under RTA, it is the responsibility of registrar to scrutinize each document before
registering it -. How quantum damages computed: e.g. its like, damages is payable to all passengers of
the bus if accident due the negligence of driver - hence Registrar liable to all aggrieved parties. As
decided in Virender Gudka & others v A.G HCCC Nrb Env (480 of 2011) eKLR [2014]
consequential losses also payable.
14 As bona fide buyer not liable for loss and cost of suit to anyone including to First Defendant:
This because (a) subject suit is bona fide and not vexatious or malicious, (b Plaintiff is registered
owner on record and also was in actual possession of prop, (b) First Defendant forcefully ejected
Plaintiff, (c) as a result there was reasonable cause of action and legitimate right to institute an action
and – (d) there was no malice on the part of the Plaintiff,
No rectification of title once bona fide buyer is registered – limitation registrar’s powers: In
Power Technics Ltd. v A.G, Registrar of titles and Commissioner of Lands HCCC 178 of 2011 (Nrb
15 High Court) [2012] eKLR at para “19. A plain reading of section 60 will show that the powers of the
registrar are limited to correcting errors and misdescriptions of land or boundaries or where entries or
endorsements to any grant or certificate of title are made in error. If substance of law, the issue has to
be referred to the court as in the instant suit.”
Under RTA possession passes with registration of transfer: This is because, with transfer and
issue of certificate of title, the possession also is deemed to have passed to the buyer.” I cannot see
16 how a person could possibly be described as “the absolute and indefeasible owner without the
possession…. The Act gives the registered proprietor his title on registration and, unless there is any
other person lawfully in possession, such as a tenant, I think that title carries with it legal possession.
As a corollary, since First Def was no longer proprietor, he was deemed not to be in possession.
Despite this presumption, there is plenty of evidence to show that Plaintiff was in effective possession
and first Def had discarded for 24 years and thereby abandoned possession.
Exception to indefeasibility of title – there cannot ever be two concurrent titles: Other
jurisdictions by special legislation have provision providing that buyer’s indefeasibility of title is
17 subject to “the estate of a proprietor claiming under a prior instrument of title”. This is not a general
exception or else it would entirely defeat the concept of last buyer having indefeasible title. It has a
limited application where by error same land is included in two titles in which case the prior one
prevails and subsequent one is paid compensation. It applies in limited instances where there is error
in survey. However, in Kenya’s RTA there is no such provision and moreover s.22(3) of Act by
unequivocally stating “The title of proprietor under such fresh certificate of title shall be as valid and
effectual as if he had been the ORIGINAL GRANTEE in the grant of the land contained in the
certificate” thereby extinguishes all past titles and interest including of the original owner.
18 LIST OF CASES AND AUTHORITIES CITED IN THIS PAPER WITH DIGEST
19 Detail exposition of law on interpretation to Constitution with reference to Torrens
system:Constitution merely few pages document that encompasses all the laws of a nation. Hence it
states in a wide philosophical way. For instance, it would merely say “vehicle” which could mean
motor bycicle, car, bus, truck, tractor etc. Hence legislature and court has derive appropriate meaning
according to the issue by taking into context all other legislations. – it is merely a skeleton or
framework of laws and legislature and court are required to put flesh into it – Bill of Right gives
citizen right to own property and RTA and LRA indefeasibility of title – as such property of an
innocent buyer cannot be deprived without compensation – court erred in declaring title of prop of an
innocent buyer nullity ab initio – no such provision in repealed Constitution – no retrospective effect
of current Constitution.
1. BRIEF INTRODUCTION: RTA and LRA are basically similar because concept
of Torrens system of registration of titles is incorporated in in them. Hence
reference herein to RTA substantially applies to LRA.
RTA = Registration of Titles Act (Cap 281), RLA = Registration of Land Act
(Cap 300) and LRA = Land Registration Act (3 0f 2012)
3. RLA compared with RTA and LRA – unlike RLA, common law and
equity do not apply to RTA and unlike RLA in the case of both first
and subsequent titles indefeasible:RTA, RLA, LRA and English
Registration of Title Act 1925 (‘ERTA’) all provide systems for
registration of land titles. Both ERTA and Torrens system evolved in same
era in early 1900. Both have lot of similarity. However a major difference
is that under Torrens system title becomes absolute or is indefeasible in
rem upon registration whereas under ERTA title is not absolute or is
conditional as it is subject to common law, equity and constructive trust.
The main differences between RLA and RTA-LRA are: (i) While RLA is
hybrid of English (ERTA) and Torrens System of title, RLA and LRA are
basically pure breed of Torrens System, (ii) While RTA and LRA
overrides common law and equity which makes title from a void or forged
instrument valid, RLA is subject to common law and equity. This is
because, s. 163 of RLA expressly provides that the Act is subject to the
“common law of England, as modified by equity” “ which encompasses
equitable doctrines of implied, constructive and resulting trusts. As a result
title is not absolute (except for original grant) because those equitable
interest and rights that are not registered are also recognized ” See Kanyi
v. Muthiora (19 of 1982) CA Nrb at pages 713. On the other hand, both
RTA and LRA override common law and equity as do not have provision
such as s.163 of RLA. This makes registration under RTA absolute like
that of company shares – what appears on the face of register is what is
recognized and not equitable interest. (iii) Since RLA is subject to
common law and equity, except for the first registration, subsequent
registrations could be defeasible or not indefeasible. This is because, those
equitable interest and rights that are not registered are also recognized. On
the other hand, since RTA and LRA do not have provision such as s. 163
of RLA, common law and equity do not apply and therefore, unlike RLA,
not only first registration but all subsequent ones are also indefeasible.
Since common law do not apply, its doctrine that buyer cannot transfer
better title than he has (“non dat qui non habet) also do not apply. Hence,
as indicated, title from a void or forged instrument is valid.
4. Philosophy of RTA and Torrens system of title – doctrine
of indefeasibility of title and concept of ‘curtain and mirror:.
a. Doctrines of Torrens system: The cardinal principle is contained
in the classic statement in Gibbs v. Messer (1891) AC 247 PC at
254 para 3 “..The main object of the Act, and the legislative
scheme for the attainment of that object, appear to be equally plain.
The object is to save persons dealing with registered proprietors
from the trouble and expense of going behind the register, in order
to investigate the history of their author’s title, and to satisfy
themselves of its validity. That end is accomplished by providing
that everyone who purchases, in bona fide and for value, from a
registered proprietor, and enters his deed or transfer of mortgage
on the register, shall thereby acquire an indefeasible right,
notwithstanding the infirmity of his author’s title.” In Regal
Constellation Hotel Ltd Re 2004 CanLII 2006 Ontario C.A.)
Pge13 para 42 “The philosophy of land titles system embodies
three principles, namely, the mirror principle, where the register is
a perfect mirror of the state of title; the curtain principle, which
holds that a purchaser need not investigate the history of past
dealings with the land, or search behind the title as depicted on the
register; and the insurance principle, where the state guarantees the
accuracy of the register and compensates any person who suffers
loss as the result of an inaccuracy.” These principles form the
doctrine of indefeasibility of title and is the essence of the land
titles system. “As I understand Gibbs v. Messer, indefeasibility of
title is a privilege given to purchasers who honestly and in reliance
on the registration of their vendor’s title acquire that title from him
by a valid and registered instrument. Such a purchaser cannot, in
the absence of fraud, be affected by the defects in his vendor’s
title.” Once the transfer is registered, it is immaterial if it is
defective as buyer takes the title at its face value.
b. Torrens system doctrines incorporated in RTA: The doctrines
of Torrens system are enshrined in RTA under – (a) s. 23(1) which
makes title of last registered owner indefeasible or absolute against
entire world including the original owner, (b) s. 22(3) deems the
title of last registered owner as an ORIGINAL GRANT thereby
extinguishing all past titles and interest including that of original
owner. This also tantamount to buyer need not be concerned about
the past record, and in essence it means “each transfer of land
involves surrender back to the Crown and a fresh grant from the
States”, (c) s 24 obliges govt to compensate owner deprived of his
property because of malfeasance at the Land
Registry, and s.32 provides that interest in an instrument would
pass only upon registration thereby constituting register as title
and not certificate, and thereby obliging registrar to scrutinize each
instrument before registering it and making it unnecessary for the
buyer to check past records. On the other hand, under GLA,
interest passes upon the execution of instrument and parties
themselves are responsible to scrutinize past record.
c. Recent Court of Appeal affirming doctrines: Numerous other
similar authorities will be found herein. Charles Karathe Kiarie
& 2 others v Administrators of the Estate of John Wallace
Mathare (Deceased) & 5 others [2013] eKLR – Court of
Appeal Civil App Sup No. 12 of13 – Ruling on: 8th Nov 2013
(case is attached): the Court of Appeal unequivocally affirmed
principles of Torrens System of titles: (a) Govt, as a keeper of
records guarantees indefeasibility of title against entire world, (b)
If anyone suffers loss, Govt compensates, (c) Buyer is not
concerned about past irregularities and illegality, (d) Bona fide
buyer notwithstanding infirmity of his author’s title, acquires
indefeasible title – ‘called the paradox of registered
conveyancing – that the registration obtained by fraud was void
and yet capable of becoming a good root of title to a bona fide
purchaser for value, and (e) The burden of proof of fraud is on who
alleges it and standard of proof is more than a mere balance of
probabilities
5. Common law and equity do not apply to RTA and LRA – title from
void instrument valid -forger can transfer a valid title:
1. Common law doctrine “non dat qui non habet’ does not apply to RTA: In Boyd v.
Mayor, etc., of Wellington (supra)N.Z Salmond J. said (of the 1915 Act): “One of the main
purposes of the Land Transfer Act was to abolish this rule of the common law in favor of the rule
that he who purchases a registered title in good faith from the registered proprietor obtains for
himself an indefeasible title unaffected by any defect in the title of his vendor.” As common law
does not apply to RTA, the doctrine that seller cannot give better title than he has “non dat qui
non habet’ does not apply, and therefore title derived from a void instrument is valid or a forger
can transfer a valid title to a bona fide buyer who has no knowledge of fraud. However, forger’s
title is valid, until it is voided. If in the meantime bona fide buyer for value is registered as
owner, he achieves an indefeasible title against the entire world including the original owner, and
thereafter the original owner’s right to the possession is converted to the right to compensation
from the government. This purpose is thus expressed by the Privy Council in Gibbs v. Messer
(1891) AC 28 PCpge 257 last para - “..Although a forged transfer which is void at common
law, will, where duly entered on the register, becomes the root of a valid title, in a bona fide
purchaser..” The effect of registration, therefore, is to validate the purchaser’s title
notwithstanding defects in the vendor’s registered title. The common law rule of non dat qui non
habet is wholly abolished in favor of purchasers of registered titles in good faith”. “As I
understand Gibbs v. Messer (supra) “.. indefeasibility of title is a privilege given to purchasers
who honestly and in reliance on the registration of their vendor’s title acquire that title from him
by a valid and registered instrument. Such a purchaser cannot, in the absence of fraud, be
affected by the defects in his vendor’s title. . In Assets Company Ltd v Mere Roihi and
Others (1905) A.C. 176 House of Lords (Privy Council) at pge 18 para 1 “.. A registered
bona fide purchaser from a registered owner whose title might be impeached for fraud has better
title than his vendor, even if title of the latter could be impeached ..”
2. Transfer from void grant valid: Even when original grant void,
subsequent bona fide buyer’s title is valid and indefeasible. In
Thomson v. Edie et al Thomas v Edie et al 2006 BCSC
(CanLII) Supreme Court B.C. Canada at page 22 para 61,
There was irregularity in issue of the grant. The property was later
sold to a bona fide buyer. It was held, “However, the Eadies are
entitled to rely on the same protection of indefeasibility of title as
if the grant had been valid. That is the intention and the effect of
the LTA.” Asset Co. Ltd. v. Mere Roihi and others (1905) AC
176 (Privy Council) – In N.Z In issuing grant to Native lands,
there were several irregularities. Subsequently lands were sold
successively to the bona fide buyers for which transfers, registered
and certificate of titles issued. Upon the Natives challenging the
titles of bona fide buyer it was held, at pge 2 last para, “.. in the
absence of fraud by the Company or its agents, registration is
conclusive, and confers good title on the Company, and that in the
proceedings in the Native court even if proved, cannot affect the
title of the Company, although such defects may possibly entitle
the Natives to Compensation for any injury caused to them by
improper registration..” and at 17 para 2 “..The sections making
registered certificate conclusive evidence of title are too clear to be
got over”
3. Buyer better title than original owner: Assets Company Ltd v
Mere Roihi and Others (1905) A.C. 176 House of Lords (Privy
Council) at pge 18 para “.. A registered bona fide purchaser from
a registered owner whose title might be impeached for fraud has
better title than his vendor, even if title of the latter could be
impeached ..”In the text book Principles of Land law in Uganda
by John T. Mugambwa (who is a professor at Murdoch University
in Australia and has 20 text books to his credit) at pge 73 para
4 mentions a case in Uganda – Lwanga v. Registrar of Titles Misc
Case No 7A of 1977 (Unreported) (1980) AC 248 in which A
forged the signature of B and transferred the property in his name
and later sold and transferred it to a bona fide buyer. It was held
that “… the title of bona fide purchaser could not be impeached
since a person who was registered through fraud could pass a good
title to a bona fide purchaser for value unless purchaser was not a
bona fide purchaser or was privy to the fraud. This was one of the
paradoxes of registered conveyance, that the registration by fraud
was yet capable of becoming a good root of title to a bona fide
purchaser for value
Forger can transfer valid title: The Law and Practice Relating to Torrens Title
in Australasia Vol I by E.A. Francis at pages 597, 649, 651 and “..Thus a forger
succeeds in getting himself registered as the proprietor and thereafter executes a
disposition for value in favor of a bona fide purchaser ….then prima facie that
purchaser cannot be ousted at the instance of the true owner, not only
because of the express statutory provisions protecting possession, but also
because a registered proprietor who has been unlawfully registered can
nevertheless transmit a sound title..” The law and Practice of Registered
Conveyancing by Ruoff & Ropper 3rd ed at page 68 para 1g: Under section 24 of
the Act, a person deprived of land can claim compensation from the defrauder and
govt. For example, in Australian case in Breskvar v Wall (1971) 126 CLR (High
Court Aus) the appellants were not deprived of their land when it was registered
in the name of a rogue because by appropriate legal action they could have
recovered the land from him. However, the appellants irrevocably lost their land
once the rogue sold to an innocent person who acquired a title superior to
theirs. The result of these cases is that an “innocent” purchaser or lender’s
interest is valid even if obtained pursuant to a fraud, and a fraudulent purchaser or
lender’s interest is invalid. Frazer v. Walker (1967) 649 ALL E.R at pge 651
para I: In this suit wife forged husband’s signature mortgaged it. The husband
sought to set aside the mortgage, as well as the title to the new bona fide owner
who had acquired title through foreclosure of the property. Their Lordships
cannot accept this argument … Even if non-compliance with the Act’s
requirements as to registration may involve the possibility of cancellation or
correction of the entry—the provisions as to this will be referred to later—
registration once effected must
6. attract the consequences which the Act attaches to registration whether that was regular
or otherwise…. It is in fact the registration and not the antecedents which vests and divests title.”
Gibbs v Messer (1891) AC 248 Privy at page 254 para 3 Council.. “…every one who
purchases in bona fide and for value, from a registered proprietor, and who enters his deed of
transfer or mortgage on the register, shall thereby acquire an indefeasible right, notwithstanding
the infirmity of his author’s title”
7. Other local supporting cases: Dinshaw Byramjee & Sons Ltd v. A.G.
of Kenya – Civil Appeal No. 25 of 1965 – Court of Appeal at Nairobi
(Sir Clement de Lestang, Ag. P., Spry and Law, JJ.A), May 24 and
June 8, June 8, 1966): E. A Law Reports Pge 198): A trust owned two
parcels of land registered under RTA. Appointment and removal of
trustees wrongful or irregular and invalid. The registered trustees created a
charge. Held: At pge 202 para 5: ‘It is clear, therefore, that whatever
irregularities may have occurred in the registration of earlier instruments,
the transfer and charge created by registered proprietors of the land
became on registration a valid and effectual instrument’. Charles Karathe
Kiarie & 2 others v Administrators of the Estate of John Wallace
Mathare (Deceased) & 5 others [2013] eKLR – Court of Appeal Civil
App Sup No. 12 of13 – Ruling on: 8th Nov 2013: In this recent suit the
Court of Appeal expressly affirmed principles of Torrens System of
titles: (a) Govt, as a keeper of records guarantees indefeasibility of title
against entire world, (b) If anyone suffers loss, Govt compensates, (c)
Buyer is not concerned about past irregularities and illegality, (d) Bona
fide buyer notwithstanding infirmity of his author’s title, acquires
indefeasible title – ‘called the paradox of registered conveyancing – that
the registration obtained by fraud was void and yet capable of becoming a
good root of title to a bona fide purchaser for value, and (e) The burden of
proof of fraud is on who alleges it and standard of proof is more than a
mere balance of probabilities”
1. Last buyer’ title deemed ORIGINAL GRANT – buyer not concerned about
past irregularities and illegalities: Original grant is issued by Govt after settling
all the past issues of land once and for all so that first grantee and subsequent
buyers or owners are not concerned about the past issues, irregularities and
illegalities. Thenceforward all future buyers take the title at its face value and are
not concerned about past history. As responsibility to scrutinize each instrument
before its registration is put on the registrar, s.23(1) RTA assures a buyer
indefeasible title against entire world including the original owner upon
registration. To that end s.22(3) of RTA provides, “The title of the proprietor
under each fresh certificate of title shall be as valid and effectual in every respect
as if he had been the original grantee in the grant of the land contained in the
certificate’. As a result, as indicated, all previous titles and interest are deemed
extinguished including that of the original owner and thereby buyer is not
concerned about the past irregularities or illegalities. What this tantamount to is
that in essence each transfer of land involves surrender back to the Crown and a
fresh grant from the State. In Breskvar v Wall (1971) 126 CLR (High Court Aus)
at pge 14 last para) at pge 14 last para), “.. He noted, as an important benefit of
the new system, “cutting off the retrospective or derivative character of the title
upon each transfer or transmission, so as that each freeholder is in the same
position as a grantee direct from the Crown’. “This is an assertion that the title of
each registered proprietor comes from the fact of registration, that is made the
source of the title, rather than a retrospective approbation of it as derivative
right..” In Regal Constellation Hotel Ltd 2004 CanLII 206 Ontario C.A.) Pge13
para 43, “Certainty of title and the ability of bona fide purchaser for valuable
consideration to rely upon the title as registered, without going behind it to
examine the conveyance, are therefore, hallmarks of the land titles system..” In
Assets Company Ltd v Mere Roihi and Others (1905) A.C. 176 House of Lords
(Privy Council) at pge 18 para 1 “.. A registered bona fide purchaser from a
registered owner whose title might be impeached for fraud has better title than his
vendor, even if title of the latter could be impeached ..”
2. Buyer not concerned about past: In Thomas v Edie et al 2006 BCSC (CanLII)
Supreme Court B.C. Canada at page 18 para 24. In this case by error part of
land of Edie was included in the subsequent grant of Thomas.’ . At pge 18 para
24 .. “The general and primary conception underlying the statute, as it is of all
legislation establishing what is known as the Torrens system of land titles, is that
the existing certificate, bearing the name of a real person, is conclusive evidence
of his title in favor of any person dealing with him in good faith and for valuable
consideration …The argument made involves this, that a person contemplating a
purchase of land included in a certificate must not only examine that certificate
and make a proper search for the interests to which, by the statute, it is declared to
be subject, but must also examine every transfer back to the original grant from
the Crown for errors in transcription into the successive certificates The
legislation was designed, obviously, to avoid just such inconvenience and
risk..’ Even when original grant is void, subsequent bona fide buyer’s title is
valid and indefeasible.
3. Why buyer given property and original owner compensation: Also in
Breskvar v Wall (1971) 126 CLR (High Court Aus) at pge 14 last para) at
pge12 para 1, “..The justification for destroying an existing legal estate or interest,
which already been duly established upon the register, is, in other words, found
only in the necessity of protecting those who subsequently deal in good faith and
for value in a manner, which, upon its face, the register appears to authorize, and
who then obtains registration” In Thomas v Edie et al 2006 BCSC (CanLII)
Supreme Court B.C. Canada at page 19 para 25 “..The Torrens system is
intended “to give certainty to title” as it appears in the land titles office. That one
who is named as owner in an uncancelled certificate of title possesses an
“indefeasible title against all the world”, and at pge 19 para 25 “…registered
owner of lands described in a certificate of indefeasible title signed by the
Registrar has title to those lands from the moment the signature of the latter is
affixed thereto, good against all the world….and is not liable to an action for
ejectment or recovery of the said lands by the rightful owner..”…. This is
because original owner’s right to possession of property is converted to right
to be paid compensation. In local case of DAVID PETERSON KIENGO & 2
OTHERS V KARIUKI THUO[2012]eKLR HCCC 180 & 220 of 2011
(Machakos) Judgment: 5th July, 2012: Defrauder registered himself by
irregular means as the proprietor and sold it to a bona fide buyer not aware of
fraud. HELD: “As buyer not concerned past irregularity and illegality, his title
indefeasible. They were not obligated to do anything more than search the
official register to establish ownership. If, as it turned out, the register was
inaccurate by reason of malfeasance by land officials, the second implication is
that the parties deprived of their property by such inaccuracy or
malfeasance may bring an action against the State for recovery of damages
but not for possession or ownership of the property. …. They had no
obligation to go beyond the register to investigate Njendu’s title and satisfy
themselves of its validity. They did their bit.” What this tantamount to is that
buyer is entitled to the possession and original owner compensation, and
that, even if all the records including actual register of title were irregular or
forgery because buyer is not concerned about them as buyer takes the title at its
face value as it appears in front of mirror and is not concerned about the past or
what is behind the curtain. “Indefeasible” means “that which cannot be defeated,
revoked or made void.
4. Uganda case facts similar to subject suit and buyer’s title held valid: C.R.
Patel v Com Land Registration & 2 Other - Uganda HCCS 87 of 2009
Judgmt Jan 2013): Uganda’s RTA is basically similar to Kenya’s RTA. Like in
subject suit, in this Uganda suit also provisional certificate of title was forged and
there was irregularly in issue of provisional certificate of title without publication
of Gazette notice and thereafter property was transferred by a forged transfer. It
was held, “…Counsel for the plaintiff submitted that the irregularities being
talked about by the 1st defendant, that even if they occurred, were done before the
plaintiff bought the suit properties from the person who, on a search before the
sale were duly registered as proprietors. Unless there is evidence of fraud on the
plaintiff’s part, and none was adduced by the defendants, the plaintiff remains a
bona fide purchaser. …… Further, even if there were errors or irregularities in
the issue of the special (duplicate) certificates of title and transfer to Damulira
Stephen, which is not proved, the plaintiff was not party to the errors committed
in the office of the first defendant by her officers. To condemn the plaintiff on
account of errors he was never privy to would be to abolish the
indefeasibility of title principle which is protected in Sections 59,64,77,176 (
C ) and 181 of the Registration of Titles Act and which is the hallmark of the
torrens system of title by registration practiced in Uganda. Section 91 of the
Land Act was never intended to abolish this age old concept of indefeasibility
of title. …. Errors, illegalities and even frauds in earlier registrations cannot
entitle the 1st defendant to cancel a registration of a person who is not privy to
those errors. It was also held duplicate or provisional certificate of title
replaces previous one and is as effective as original.
a. This Uganda Case basically has similar facts as subject suit:. C.R. Patel v
Commissioner Land Registration & 2 Other (Judgment Jan 2013), HCCC No. 87 of
2009, Uganda High Court at Kampala (Land Division): The Registration of Titles Act
of Uganda is basically similar to that of Kenya. This is a title fraud case with facts
basically similar to subject suit of Asaria v Rai and Others. In this Uganda
case there were also irregularities in issue of duplicate or provisional cert of title as NO
GAZZET NOTICE WAS PUBLISHED AND TRANSFER WAS ALSO FORGED.
also buyer was a bona fide buyer for value without the knowledge of fraud or
irregularities. It was held that despite irregularities and illegalities in issue of provisional
certificate and registering forged transfer, since buyer was a bona fide buyer and was not
concerned about the past illegalities, his title was indefeasible and valid in rem. It was
also stated that under Torrens system in fact register is the title and not certificate. Once
duplicate or provisional certificate of title is issued, it replaces the previous one. Held: It
was held that despite irregularities and illegalities in issue of provisional certificate and
registration of forged transfer, the buyer not being aware of them had valid title.” Further,
even if there were errors or irregularities in the issue of the special certificates (means
prov cert) of title and transfer to Ddamulira Stephen, which is not proved, the plaintiff
was not party to the errors committed in the office of the first defendant by her officers.
To condemn the plaintiff on account of errors he was never privy to would be to abolish
the indefeasibility of title … and which is the hallmark of the torrens system of title by
registration practiced in Uganda. …. Errors, illegalities and even frauds in earlier
registrations cannot entitle the 1st defendant to cancel a registration of a person who is
not privy to those errors.” … “A special (provisional) (duplicate) certificate of title once
issued under Section 70 of the Registration of titles Acts simply replaces the Duplicate
(original) Certificate of title which is lost or presumed lost. … The Special and Duplicate
(original) Certificates of title are all based on one folio of the register (white page). It is
my interpretation of the law that Section 64 (1) read together with Section 176 (e) RTA
on priority of titles is quoted out of context. It deals with a situation where there are two
or more conflicting registers (folios) in respect of the same piece of land. It does not deal
with a situation where under Section 70 of the RTA a duplicate certificate of title is
issued. Here there are no two conflicting certificates of titles but a replacement of the
same certificate of title..”
b. Recent CA case affirming principles of Torrens system: Charles Karathe Kiarie & 2
others v Administrators of the Estate of John Wallace Mathare (Deceased) & 5
others [2013] eKLR – Court of Appeal Civil App Sup No. 12 of13 – Ruling on: 8th
Nov 2013: In this suit one of the beneficiaries fraudulently sold the property to a buyer
who was aware of fraud. Although property was not awarded to the buyer because he was
aware of fraud, nonetheless, the Court of Appeal expressly affirmed the principles of
Torrerns System of titles: (a) Govt, as a keeper of records guarantees indefeasibility of
title against entire world, (b) If anyone suffers loss, Govt compensates, (c) Buyer is not
concerned about past irregularities and illegality, (d) Bona fide buyer notwithstanding
infirmity of his author’s title, acquires indefeasible title – ‘called the paradox of
registered conveyancing – that the registration obtained by fraud was void and yet
capable of becoming a good root of title to a bona fide purchaser for value, and (e) The
burden of proof of fraud is on who alleges it and standard of proof is more than a mere
balance of probabilities”
At Para 13: “Where, then, does this leave us? There is no elegant way to resolve this issue.
There is only a pragmatic way of doing so. It is in keeping with the objectives of the Registered
Lands Act, and, indeed, the entire system of registration of land in Kenya. The Registered Lands
Act is based on the Torrens’ System. Under this system, indefeasibility of title is the basis for
land registration. The State maintains a central register of land title holdings which is deemed to
accurately reflect the current facts about title. The whole idea is to make it unnecessary for a
party seeking to acquire interests in land to go beyond the register to establish ownership. The
person whose name is recorded on the register holds guaranteed title
i. to the property. Since the State guarantees the accuracy of the register, it makes it
unnecessary for a person to investigate the history of past dealing with the land in
question before acquiring an interest. That this is the essence of the Torrens System was
stated as early back as 1891 in the case of Gibbs v. Messer (1891) AC 254: .The main
object of the Act, and the legislative scheme for the attainment of that object, appear to be
equally plain. The object is to save persons dealing with registered proprietors from the
trouble and expense of going behind the register, in order to investigate the history of
their author\’s title, and to satisfy themselves of its validity. That end is accomplished by
providing that everyone who purchases, in bona fide and for value, from a registered
proprietor, and enters his deed or transfer of mortgage on the register, shall thereby
acquire an indefeasible right, notwithstanding the infirmity of his author\’s title. ”
ii. At Para 14: “Practically, the principle of indefeasibility has two implications for the
instant case. It means that if the parties who acquired interests to the properties from
Njendu can demonstrate that they did so in good faith, without notice and did not
participate in Njendu’s fraud, their titles will be secure and guaranteed by the State. They
were not obligated to do anything more than search the official register to establish
ownership. If, as it turned out, the register was inaccurate by reason of malfeasance
by land officials, the second implication is that the parties deprived of their property
by such inaccuracy or malfeasance may bring an action against the State for
recovery of damages but not for possession or ownership of the property.”
iii. At Para15: “In my view, this statement of the law suggests the prima facie resolution of
the case: In as long as, at this stage, it cannot be demonstrated otherwise, the assumption
is that David Peterson Kiengo; Nkiiri Victor Michuru; and Kenakena Investments Ltd on
the one hand; and Fountain on the other are bona fide purchasers for value without notice.
They had no obligation to go beyond the register to investigate Njendu’s title and
satisfy themselves of its validity. They did their bit.” (iv) At para 22: …”Yet, I must
return where I began. This is not an elegant solution. It is a hard result for the Thuos.
They did nothing wrong. They are merely victims of a fraudster; in fact, they are
vicarious victims to the fraudster because they never saw nor dealt with him. It is the
other parties to the cases who were directly “victimized.” Yet, through the operation of
the law, these other parties have an upper hand in retaining possession and ownership of
the properties in question. For me, it is not enough that I say that the “law made me do
it.” I believe that the results here are in keeping with the overall policy objectives of the
Land Registration Act, whose stability, I also believe, maximizes the welfare of the
polity. That does not make the result here any easier for the Thuos. The only saving
grace is that they have a course of action against the State for recovery of damages
if, eventually, the final resolution of this case mirrors that of the two Applications
under consideration…
d. Upon registration title indefeasible: Dr. Joseph Ng’ok v. Justice Moijo Ole
Keiwua, J.L. Ole Kipury, J.B. Muturi, Commissioner of Lands and Madison
Insurance Co. Kenya Ltd, Court of Appeal, Civil Appeal 60 of 1997 (27/97
Nrb) (case is attached) – Appellant applied for the allocation of a plot which was
approved but he did not get himself registered. Subsequently same plot was
allocated to three respondents who were registered as proprietors under RTA.
They sold and transferred to Goodwood Properties Ltd who in turn sold and
transferred to respondent, Madison who was registered. It was held that since
Madison was a bona fide buyer and there was no evidence of fraud, Madision
under s.23(1) of RTA had indefeasible title. “Section 23(1) of the Act gives an
absolute and indefeasible title to the owner of the property. The title of such
owner can only be subject to challenge on grounds of fraud or
misrepresentation to which the owner is proved to be a party. Such is the
sanctity of title bestowed upon the title holder under the Act. It is our law
and law takes precedence over all other alleged equitable rights of title. In
fact the Act is meant to give such sanctity of title, otherwise the whole process
of registration of titles and the entire system in relation to ownership of
property in Kenya will be placed in jeopardy”.
e. In Hannah Wangui Ithebu & Other v Joel Nguigi Magu, The Land Registrar
Muran’a & Other Civil Appeal No. 86 of 1999 – [2005] eKLR High Court at
Nairobi: it was alleged that Appellant with collusion of Land Registrar had been
registered as the first owner of the land. It was held at page 2 and 3 by Justice
Visram applying Court of Appeal dictum in Nairobi Permanent Markets Society
& other eleven – v – Salima Enterprises and NCC Appeal No. 185 of 199:
“Essentially, the issue before this Court turns on a legal point: whether the title
deed issued to the Appellants in respect of the suit land conferred upon the
Appellants an indefeasible and unpeachable title, which could not be challenged
on any ground including fraud” …” under Section 23 of the Registration of
Titles Act (which is in parimateria to the Registered Land Act) a Certificate of
Title issued by the Registrar to any purchaser of land is to be taken by all courts
as conclusive evidence that the person named therein as proprietor of land is the
absolute and indefeasible owner thereof and his title is not subject to challenge
except on the ground of fraud or misrepresentation to which he is proved to be
party”. … “ However, the Appellant’s registration as owners of the suit land was a
first registration and under Section 143(1) of Registration of Land Act, Cap 300
Laws of Kenya, such registration could not be defeated even by proof of
fraud. So even if the lower court was correct in finding that the defendants
‘conspired to fraudulently deprive the plaintiff (of suit land), as it did, this could
not defeat the registration of Appellants, as the first registered owners of suit
land….Unfortunately, that is the law, and much though I might dislike or
disapprove of it (and I must say that indeed I disapprove of it) I am bound by
it. In its wisdom, the Parliament made that law, and I am duty bound to
apply it”. As explained elsewhere herein, whereas under RLA only first
registration is indefeasible, under RTA subsequent registrations also are
indefeasible unlike RLA, common law does not apply to RTA.
f. Dinshaw Byramjee & Sons Ltd v. A.G. of Kenya – Civil Appeal No. 25 of
1965 – Court of Appeal at Nairobi (Sir Clement de Lestang, Ag. P., Spry and
Law, JJ.A), May 24 and June 8, June 8, 1966): E. A Law Reports Pge 198: A
trust owned two parcels of land registered under RTA. Appointment and removal
of trustees wrongful or irregular and invalid. The registered trustees created a
charge. Held: At pge 202 para 5: ‘It is clear, therefore, that whatever irregularities
may have occurred in the registration of earlier instruments, the transfer and
charge created by registered proprietors of the land became on registration a valid
and effectual instrument’.
g. How court erred in Iqbal Rai’s case denying bona fide buyer land or
compensation – also how Iqbal’s case different from subject case: Iqbal Rai
v Mark Lecchini HCCC 1054 of 2005 (Nrb): In this Iqbal’s case, a defrauder
stole the identity of the owner, forged his signature and sold the plot to a bona
fide buyer. The buyer unaware of the forgery, registered the transfer. Both
original owner and buyer asserted that he had indefeasibility of title by virtue of
s.23(1) of RTA upon registration of transfer. The property was awarded to the
original owner based on Gibbs v Messer (1891) AC 248 at page 254 para 3 that
buyer did not deal with the owner who was registered at the time and dealt with
the defrauder. As this was against the cardinal principle of Torrens system that
upon the registration of transfer buyer’s title becomes indefeasible against entire
world including the original owner or his vendor notwithstanding the infirmity of
his author’s title, the Gibbs case had been overruled Under Torrens system, title is
by registration. Buyer’s title comes into existence upon registration and therefore
it is irrelevant as to with whom he dealt. Gibbs case was overruled as confirmed
in Frazer v. Walker (1967) 649 ALL E.R at pge 651 para H and I. This cardinal
principle of Torrens system is enshrined in sections 22(3) and 23(1) of RTA and
also incorporated in new LRA. As explained elsewhere herein, as a bona
fide buyer is not concerned about the past irregularities, upon the registration his
title is deemed conclusive and indefeasible notwithstanding the infirmity of his
author’s title. UNFORTUNATELY HON. JUDGE IN IQBAL’S CASE
ERRED BY RELYING ON GIBB’S CASE NOT KNOWING THAT IT IN
FACT IT HAD BEEN OVERULED.
10. Register and not certificate constitutes title because title by registration:
Under RTA or Torrens system register is the title and certificate is merely proof of title. This was
summed up succinctly by Barwick CJ in Breskvar v Wall (1971) 126 CLR (High Court Aus) pge
4 para15. (case is attached) - “The Torrens system of registered title of which the Act is a form
is not a system of registration of title but a system of title by registration. That which the
certificate of title describes is not the title which the registered proprietor formerly had, or which
but for registration would have had. The title it certifies is not historical or derivate. It is the title
which registration itself has vested in the proprietor. Consequently, a registration which results
from a void instrument is effective according to the terms of the registration. It matter not what
the cause or reason for which the instrument is void.” In Breskvar v Wall (Supra) at pge 14 last
para (case is attached), “.. He noted, as an important benefit of the new system, “cutting off the
retrospective or derivative character of the title upon each transfer or transmission, so as that
each freeholder is in the same position as a grantee direct from the Crown’. “This is an assertion
that the title of each registered proprietor comes from the fact of registration, that is made
the source of the title, rather than a retrospective approbation of it as derivative right..” What this
tantamount to is that in essence each transfer of land involves surrender back to the Crown and a
fresh grant from the State. This Uganda case confirms that buyer not concerned about the
past, and provisional certificate replaces previous one: C.R. Patel v Commissioner Land
Registration & 2 Other (Judgement Jan 2013), HCCC No. 87 of 2009, Uganda High Court
at Kampala (Land Division) (case is attached): The Registration of Titles Act of Uganda is
basically similar to that of Kenya. This is a title fraud with irregularities in issue of provisional
certificate. It was held that despite irregularities and, since buyer was a bona fide buyer and was
not concerned about the past illegalities, his title was indefeasible and valid in rem. It was also
stated that under Torrens system in fact register is the title and not certificate. IT ALSO
CONFIRMED THAT ONCE DUPLICATE OR PROVISIONAL CERTIFICATE OF
TITLE IS ISSUED, IT REPLACES THE PREVIOUS ONE. Under RTA the interest in a
instrument by virtue of s. 32 passes only upon registration and under s.27 the instrument is
deemed registered as soon as it has been marked by the registrar with the folio and volume. It is
the duty of registrar to scrutinize each instrument before registering it. On the other hand under
GLA (repealed), the interest in an instrument passed upon the execution of an instrument and it
was the responsibility of the buyer to scrutinize it and all past records. What is referred to here as
title is registration and not certificate of title which is merely a piece of paper to establish
proof. The s.23 states that the certificate of Title ‘shall be taken by all courts as conclusive
evidence that the person named therein as the proprietor. Also under s. 31 a copy of instrument
certified by registrar to be conclusive evidence that it has been registered. It is obvious that the
purpose of sec 23 is to constitute certificate of title merely as a proof or evidence of title to make
it convenient to prove title in the court and avoid having to call registrar to produce the records.
What certificate is deemed to say is that the owner whose name appears on the certificate
is in fact at present on the record as the registered owner at the Land Title Registry. In the
subject suit, while first Defendant holds original certificate, he is not registered as the
owner at the registry. The operative or key words in this section are ‘evidence’ and ‘court’. As
per s. 32 of the Act, title being by registration, only register itself constitutes the title. As such to
establish who is the owner, it is necessary to search the title. Also the certificate is requisite for
the purpose of registration of transfer and other instruments purely as a mechanism or procedural
matter. Since it is optional, under s.22(1) buyer can at any time after he has been registered as
owner apply for the issue of a certificate upon payment of a fee. Hence, if certificate is lost,
destroyed or a duplicate is obtained by a forgery, it does not affect in any way the status of
register of title. S.71 of the Act categorically states, “ .. the provisional certificate shall be
available for all purposes and use for which the grant or certificate of title so lost or destroyed
would have been available and as valid to all intents as the lost or destroyed certificate”. It is like
passport. It does not constitute citizenship. If a passport is lost and a new one is issued, the old
one is deemed cancelled and new one is as effective as the original. On the other hand, whereas
buyer’s name currently appears as the registered owner at the Land Registry, original owner’s
does not. The certificate held by Plaintiff indeed reflects the true status with the name of owner
at the registry. Hence, the certificate held by original owner is worth as a piece of paper as it is
not reflection of what is at present on register.
12. RTA overrides other Acts and laws so that concept of Torrens system not
undermined: Under s 1(2), RTA being a special legislation, it overrides inconsistent
provisions of all other Acts such as Government Proceedings, Advocates, Stamp Duty
and Indian Transfer of Property. This is because, if title was subject to other laws, it
would defeat the cardinal principle of ‘sanctity of title’ or ‘conclusiveness of title’. S.
1(2) states “Except so far as is expressly enacted to the contrary, no Act in so far as it is
inconsistent with this Act shall apply or be deemed to apply to land, whether freehold or
leasehold which is under the operation of this Act”. What it means is that, if a provision
of any Act is repugnant to RTA, unless it itself expressly refers to the RTA, the provision
of RTA would prevail over that Act. Land Law in E. Africa by Krishan M. Maini pg
167.” This provision protects land registered under this Act from any other law,
procedure and practice which is inconsistent with its provisions.. A provision of on these
lines is common to all the Torrens statutes.” If the title was subject to other laws, it
would defeat the cardinal principle of ‘sanctity or conclusiveness of title “Section 23 (1)
of the Act bestows sanctity of title upon the title holder under the Act. … In fact the Act
is meant to give such sanctity of title, otherwise the whole process of registration of titles
and the entire system in relation to ownership of property in Kenya would be placed in
jeopardy.” In Breskar v Wall HC Aust. 70; (1971) 126 CLR 13 Dec 1971 among other
defenses in a case of forged transfer, it was alleged that transfer did not comply with
Stamp Act and therefore transfer was void. However, although it was void because of
illegality under the Stamp Act, it was valid because under Torrens past illegality does not
invalidate title. Hence Torrens system prevailed over the Stamp Act. “…Thus the effect
of Stamp Act …is irrelevant to the question of whether the certificate of title is
conclusive..” In Popatlal vs. Visandjee [1960] EA 361, 365: In this suit there was a
default of mortgage and issue was whether Indian Evidence Act 1872 applied to the
title under RTA. Held: (i) The joint effect of s. 1(2), s 23 and s.32 of RTA was to
override s. 68 of the Indian Evidence Act, 1872. (ii) ..”Any other conclusion would
violate the general principle of sanctity of title of the register, which is the
foundation of legislation based on, as the Registration Title Ordinance is, upon the
Torrens system of registration’.
13. Buyer entitled to property and original owner compensation – how quantum of
damages computed:
a. Last buyer’s titled deemed original grant extinguishing all past titles including of
original owner: This is because upon the registration of a buyer as a proprietor, the title
of original owner is instantly extinguished in view of: (a) As under s.22(3) of RTA last
buyer being deemed original grantee, all past interest and titles including of original
owner being extinguished (b) Under s. 23(1) upon registration buyer has indefeasible
title against entire world including the original owner, and (c) Under s.24 party who
suffers loss including original owner who is deprived property due to the negligence of
registrar is paid compensation by Govt. What this means is – “Where an owner is
deprived of title as a result of forgery or other fraud, his or her right to recover the
land is converted to right for compensation and the former owner is not entitled to
have his titled restored and is statute barred from commencing an action to recover
Torrens title land against registered proprietor.”
b. Original owner’s recourse only for compensation and not possession:
i. In Regal Constellation Hotel Ltd Re 2004 CanLII 2006 Ontario C.A.) Pge13
para): “The philosophy of land titles system embodies three principles, namely,
the mirror principle, where the register is a perfect mirror of the state of title; the
curtain principle, which holds that a purchaser need not investigate the history of
past dealings with the land, or search behind the title as depicted on the register;
and the insurance principle, where the state guarantees the accuracy of the register
and compensates any person who suffers loss as the result of an
inaccuracy.” These principles form the doctrine of indefeasibility of title and is
the essence of the land titles system. In Thomas v Edie et al 2006 BCSC (CanLII)
Supreme Court B.C. Canadaat page 19 para 25 “..registered owner of lands
described in a certificate of indefeasible title signed by the Registrar has title to
those lands from the moment the signature of the latter is affixed thereto, good
against all the world….and is not liable to an action for ejectment or recovery of
the said lands by the rightful owner..”
ii. DAVID PETERSON KIENGO & 2 OTHERS V KARIUKI THUO [2012]
eKLR HCCC 180 & 220 of 2011 (Machakos) Judgment: 5th July, 2012: In
this suit, “If, as it turned out, the register was inaccurate by reason of malfeasance
by land officials, the parties deprived of their property by such inaccuracy or
malfeasance may bring an action against the State for recovery of damages
but not for possession or ownership of the property”……at para 22: “Yet, I
must return where I began. This is not an elegant solution. It is a hard result for
the Thuos (original owners). They did nothing wrong…. Yet, through the
operation of the law, these other parties (buyers) have an upper hand in retaining
possession and ownership of the properties in question. For me, it is not enough
that I say that the “law made me do it.” I believe that the results here are in
keeping with the overall policy objectives of the Land Registration Act, whose
stability, I also believe, maximizes the welfare of the polity. That does not make
the result here any easier for the Thuos. The only saving grace is that they have
a course of action against the State for recovery of damages..”
c. Registrar liable because sole custodian of all records: Whilst under Government Lands
Act (repealed) interest in land passed upon the execution of an instrument, under RTA
s.32 interest passed upon the registration. Section 27 of the Act states that an instrument
is deemed registered when registrar enters a memorial in register and inserts his
signature. Hence it is the act of an officer in the Land Titles Office which effects the
transfer of title. The powers and responsibilities vested in state officials thus give rise to
the possibility of loss through mistakes occurring in the Land Titles Office. Apart from
compensation payable under common law for negligence, under s.24(1) of RTA
Government is obliged to pay compensation for mistakes of its officials. This provision
provides for compensation for loss generally to any aggrieved party. However, since bona
fide buyer upon registration achieves indefeasible title against entire world including the
original owner, compensation is payable to the original owner losing the property as a
consequence of fraud or by registering other person as proprietor in consequence of any
error or miss-description in any grant or certificate of title or any entry or memorial in the
register. The action is a special action, which is separate and different from any action the
victim may have at common law.
d. Damages payable to all injured parties: : In computing quantum of damages, the
principle is that – victim to be put in his original state, that is, to be compensated for all
losses he has suffered. If more than one party is injured due the act of a culprit, all have
to be compensated as is in the case of passengers who are injured in a bus accident due to
the negligence of a driver. As held in Virender Gudka & others v A.G HCCC Nrb Env
(480 of 2011) eKLR [2014] consequential losses such as loss of profit and cost of
increase in cost of construction also payable.
e. Contrary to cardinal principles of Torrens system Court’s tendency to award
property to original owner on emotional basis: The court has been justifying declaring
title of bon fide buyer nullity ab initio under the common law doctrine that seller cannot
transfer better title than he has “non dat qui non habet’ not knowing, as explained
elsewhere herein at length, that as RTA overrides common law, this common law
doctrine does not apply. Hence forger can transfer a valid title or title from a void
transfer can be valid. Also contrary to the objective and cardinal principle indefeasibility
of title under RTA or Torrens system, there has also been tendency for the court to award
the property on emotional reason to the original owner instead of bona fide buyer thereby
destroying the cardinal principle of indefeasibility of title and making the Act defunct or
like a car without its engine. This is because court feels how original owner could be
deprived of his property not realizing that the owner would not suffer any economic loss
as in the case of compulsory acquisition by Govt, he is also compensated full market
value.
f. Owner deprived of property suffers no economic loss: Both under compulsory
acquisition and under RTA property is taken away in the interest of public at large. Since
public at large benefits from the property and so that single citizen does not take entire
brunt, as a fairness, he is compensated a full market value. Contrary to the objective and
cardinal principle of indefeasibility of title under RTA or Torrens system, as indicated,
there has been tendency for the court to award the property on emotional reason to the
original owner instead of bona fide buyer. This is because court felt that it would be
unfair to deprive original owner of his property not realizing that the owner would not
suffer any economic loss as in the case of compulsory acquisition by Govt, he is also
compensated full market value. This is also because Constitution accords right to own
property. How it benefits country at large if owner is deprived of his property under RTA
! To avoid everyone each time carrying out arduous and costly search of title which may
go back decades, Torrens system provides that instead registrar as the sole custodian of
records scrutinizes each instrument once and for all before registering it thereby
expediting transfer of properties, avoid colossal cost and unnecessary stagnation of
economy. It is like – instead of millions of passengers each time before boarding a plane
carrying out cumbersome enquiry to find out if plane was mechanically sound or pilot
was qualified and not under the influence of alcohol, by law responsibility of safety of
passengers is put solely on the owner of the airline. Under RTA, registrar as an
exclusive custodian of records at the Land Title Registry is made solely responsible to
ensure that all the records are at all time accurate so that a buyer takes the register of
title at its face value and is not concerned about the past records
g. In compulsory acquisition country at large benefits: So that one individual does not
suffer or take entire brunt, under Constitution, the Govt is obliged to pay full
compensation at fair market value to the individual concerned. Same principle applies
when depriving original owner of his property under RTA. Since it benefits country at
large, so that deprived owner does not suffer any economic loss, he is paid full
compensation at a fair market value. How it benefits country at large ! To avoid everyone
each time carrying out arduous and costly search of title which may go back decades,
Torrens system provides that instead registrar as the sole custodian of records scrutinizes
each instrument once and for all before registering it thereby expediting transfer of
properties, avoid colossal cost and unnecessary stagnation of economy. It is like – instead
of millions of passengers each time before boarding a plane carrying out cumbersome
enquiry to find out if plane was mechanically sound or pilot was qualified and not under
the influence of alcohol, by law responsibility of safety of passengers is put solely on the
owner of the airline. Under RTA, registrar as an exclusive keeper of records at the Land
Title Registry is made solely responsible to ensure that all the records are at all time
accurate so that buyers take the register of title at its face value and are not concerned
about the past records.
h. More supporting cases why buyer entitled to property and original owner property:
i. Charles Karathe Kiarie & 2 others v Administrators of the Estate of John Wallace
Mathare (Deceased) & 5 others [2013] eKLR – Court of Appeal Civil App Sup No.
12 of13 – Ruling on: 8th Nov 2013): In this recent Court of Appeal, theexpressly
affirmed all the principles of Torrerns system of titles and also unequivocally stated that a
bona fide buyer notwithstanding infirmity of his author’s title, acquires indefeasible title
– ‘called the paradox of registered conveyancing – that the registration obtained by fraud
was void and yet capable of becoming a good root of title to a bona fide purchaser for
value..” This tantamount to buyer entitled to the possession.
ii. In Thomas v Edie et al 2006 BCSC (CanLII) Supreme Court B.C. Canada at page 4
para 25: “[T]he Torrens system is intended “to give certainty to title” as it appears in the
land titles office. That one who is named as owner is an uncancelled certificate of title
possesses an “indefeasible title against all the world”,…. That such a system may from
time to time impose hardships is obvious and, therefore, in addition to preserving actions
against the wrongdoer, the legislature has provided an assurance fund out of which, in
appropriate cases, compensation may be paid to those who suffer a loss.”See text book
“The Australasian Torrens System by James Edward Hogg” at pge 847 para 3 “…If a
person is rightfully entitled to any interest in land and has lost his property owing to
another person having obtained a registered interest which is, as against the rightful
owner, indefeasible, provision is made for pecuniary compensation by way of damages
being, in certain cases, made payable to the person so deprived of his property. For this
purpose an Assurance Fund has been created in each jurisdiction.”
iii. Viranda Ramji Gudka & 2 others Nairobi HCCC (ELC Civil Suit) No. 480 of 2011 –
{2011} eKLR: Land compulsorily acquired by Govt for road use – it was subsequently
subdivided, allocated and title under RTA issued to the Plaintiff – Road Authority to
construct road overnight demolished a highrise building and 30 godowns on the ground
title was issued illegally. HELD: (1) As no evidence of fraud on the part of Plaintiff, his
title indefeasible (2) Govt adduced no evidence of compulsory acquisition and survey
plan did not show if subject land was included, and (3) judgment for the Plaintiff that
Plaintiff entitled to the land and Govt to pay Kshs.750 m for damage to property, loss of
profit etc.
iv. Vekariya Investments Linited –v- Kenya Airport Authority & 2 others HCCC
Milimani Const and Human Rights Petition No. 263 of 2011 –{2014} eKLR: JKIA
land was allocated and title issued to JKIA for public use of road and
airport. Subsequently land subdivided and allocated irregularly to predecessor of
Petitioner. Title under RTA issued – no evidence of fraud – issue of double allocation:
HELD: (a) By virtue s.23(1) of RTA and s. 26 of new LRA 3 of 2012, both parties had
indefeasible title (b) As held in Gitwany Investment Limited v Tajmal Limited and 3
others Nairobi HCCC No. 1114 of 2002 {2006} eKLR – if double allocation prior one
prevails and land awarded to JKIA – as both parties innocent and fraud emanated from
Land Title, Registrar liable to compensate Petitioner bona fide buyer value of property
and pay both parties cost. (c) Also followed was Peterson Kiengo v Kariuiki Thuo -
Machakos HCCC No. 180) and 220 of 2011 {2012} eKLR – Govt guarantees
indefeasibility of title, buyer takes title at face value and not obliged to scrutinize past
record, Registrar liable for malfeasance of land officials and liable to pay compensation
to aggrieved party, and buyer entitled to property and original owner compensation,
and (d) Article 40(6) which states that if title acquired unlawfully, it is invalid means
title of party who colluded in fraud and not of an innocent buyer.
v. Text book – Land Law in Uganda: Under the Torrens system, government is liable to
pay two types of compensations: A text book “Principles of Land Law in Uganda by John
T. Mugambwa’ 2002 Ed (who is a professor at Murdoch University in Australia and has
20 text books to his credit) pge 88 para 3 and 4 (extract of text attached) “Firstly, an
action may be instituted where a person suffers loss through any omission, mistake or
misfeasance of the registrar. ….. Secondly, a person who suffers loss as a result of the
registration of another as proprietor may bring an action for damages against the registrar.
vi. Famous local case holding Registrar liable of malfeasance: Gitwany Investment Ltd
– vs – Tajmal Ltd, Geoffrey Njage, Max Motors Ltd, C of L and A.G. HCCC 1114
of 2002 (Nairobi) (case is attached). In this suit, presumably in collusion with Land
Registry another record of title was created and a defrauder was registered and was issued
with the certificate of title. The land was later sold to a bona fide buyer who was not
aware of another original record. The buyer developed the land constructing several high-
rises buildings comprising of apartments and for which he also borrowed money from the
bank. It was held that both original owner and bona fide buyer were innocent. The
property was awarded to the original owner and Commissioner of Lands was ordered to
pay bona fide buyer Kshs151,500,000.00 cost of development and Commissioner was
also ordered to pay the cost of both the parties and also cost of removal of development.
It was stated that “In fact the entire mess in which those parties find themselves in,
is creation of and a matter that must be put squarely at the doorstep of the
Commissioner of Lands … All documents leading to the issuance of title are
prepared, kept nor issued by any other party other than that office..” It should be
noted that in the Gitwany case there were two or double allotments, two titles and two
records of same land. Hence, the prior allotment or title prevailed but the subsequent title
holder was compensated.
vii. Uganda’s case of C.R. Patel v Com Land Registration & 2 Other - Uganda HCCS 87
of 2009 Judgment Jan 2013) (case is attached): Uganda’s RTA basically similar to
Kenya’s, and also facts of Uganda case are similar to the subject suit. Despite forged
Provisional Certificate and forged transfer like in the subject suit, title of bona fide buyer
was nonetheless held valid and thereby buyer was entitled to the possession of property.
This was because buyer was not concerned about the past irregularities and illegalities of
which he was not a party.
viii. Hannah Wangui Ithebu & Other v Joel Nguigi Magu, The Land Registrar Muran’a &
Other Civil Appeal No. 86 of 1999 – [2005] eKLR High Court at Nairobi: (case is
attached) : This case follows the decision of Court of appeal in Nairobi Permanent
Markets Society & other eleven – v – Salima Enterprises and NCC Appeal No. 185 of
199 (case is attached): despite illegality in past title, this Court of Appeal case
affirmed title of bona fide buyer to be indefeasible under s.23(1) of RTA. In this
Hannah’s case, Justice Visram emphatically stated “…such registration could not be
defeated even by proof of fraud….Unfortunately, that is the law, and much though I
might dislike or disapprove of it (and I must say that I indeed I disapprove of it) I
am bound by it. In its wisdom, the Parliament made that law, and I am duty bound
to apply it”.
ix. Registrar obliged to pay compensation not for the act of defrauder but his
malfeasance: To make the registrar liable for negligence or malfeasance of officials at
the Land Title Registry is not something unusual. This is based on the general concept
under common law tort that everyone in life owes a duty of care to another person. If due
to his act or negligence another person suffers harm or loss, by law he is obliged to make
loss good. In this respect, Govt is not excepted and is also liable for its action like a
private individual. Hence, if registrar is required to pay compensation, it is purely based
on this concept of duty of care. He indeed is not paying compensation because of the act
a defrauder or forger. If there was no malfeasance in his department, the defrauder would
not have succeeded. As indicated, he is obliged to pay compensation because knowing
very well that public was required to put full faith in the accuracy of records, he let
malfeasance occur. It is like govt being liable due to its negligence in not maintaining a
highway bridge which collapses causing injuries. .
14. A bona fide buyer not liable for loss and cost of suit to anyone including to the
original owner:
a. Where an innocent bona fide buyer while relying on the face of title, buys a
property about which later on it transpires that due to a fraud that emanated at
the Land Titles Registry the original owner was adversely affected, such buyer as
matter of principle and fairness cannot be liable to the original owner for any loss
that original owner may suffer. This is because, if original owner suffered, it was
because of malfeasance or negligence of officers at the Registry. A bona fide
buyer is also not liable because 24(i) of RTA specifically absolves a bona fide
buyer for value who is registered as the proprietor of any liability for damages
suffered by the original owner deprived of the property. In Breskvar v Wall
(Supra) at pge 17 para 9 “..nothing in the Act contained shall be interpreted to
subject to any action of ejectment or recovery of damages any purchaser or
mortgagee bona fide for valuable consideration of any land under the provisions
of the Act although his vendor or mortgagor may have been registered as a
proprietor through fraud or may have derived from or through a person registered
as a proprietor through fraud.” In Gitwany Investment Ltd – vs – Tajmal Ltd,
Geoffrey Njage, Max Motors Ltd, C of L and A.G. HCCC 1114 of 2002 (Nairobi)
it was ruled that since fraud originated at the Land Registry and both the parties
were innocent, the government must take the brunt of paying compensation of
Kshs.151,500,000.00 million to the buyer and also pay costs of both parties. In the
Principles of Land Law of Uganda by John T Mugambwa (who is a professor at
Murdoch University in Australia and has 20 text books to his credit) page 88 para
2, “For example, if X fraudulently transfers P’s land to himself and he is the
registered proprietor, X is the wrongdoer and P is entitled to sue him for
compensation …. X would still be liable even where he transfers the land to TP,
BUT NO ACTION FOR COMPENSATION BE BROUGHT AGAINST TP
OR ANY OTHER PERSON WHO IS A BONA FIDE PURCHASER FOR
VALUE. This is because of the principle of indefeasibility under s.61 and 181 of
the Registration of Titles Act. The latter provision expressly absolves a bona fide
proprietor for value from any liability for damages suffered by a person P
deprived for his estate or interest in consequence of fraud, error or miss-
description. Under s. 186(a), a person deprived of his or her estate or interest in
land may claim compensation from the government.”
15. No rectification of title once bona fide buyer is registered – Limitation Registrar’s
Powers: Registrar no power if issue of substance: Under RTA registrar does not have
power if issue of substance is not involved. In Power Technics Ltd. v A.G, Registrar of
titles and Commissioner of Lands HCCC 178 of 2011 (Nrb High Court) [2012] eKLR at
para “19. A plain reading of section 60 will show that the powers of the Registrar are
limited to correcting errors and miss-description of land or boundaries or where entries or
endorsements to any grant or certificate of title are made in error. This is a limited
jurisdiction that does not include cancellation of titles. Even where the Registrar
exercises such powers granted to him the facts that are condition precedent of the
exercise of such power must be shown to exist and the party against whom the power
invoked must be given an opportunity to be heard. Section 65 empowers the Registrar to
do all things that are necessary to ensure that there is a fair hearing” In Asset Co. Ltd. v.
Mere Roihi and others (1905) AC 176 (Privy Council) at pge 9 para 1 “ …Large,
however, as powers are, it has been decided that they cannot be exercised to the prejudice
of registered bona fide purchaser..” In Regal Constellation Hotel Ltd Re 2004 CanLII
2006 Ontario C.A.) Pge 14 para 44) “.. It has been held that there is no jurisdiction to
rectify the register if to do so would interfere with the registered interest of a bona fide
purchaser for value in the interest as registered..”This is because before his title is voided,
a forger can transfer a valid title to a bona fide buyer for value without the notice of
fraud. Once bona fide buyer is registered and thereby achieves indefeasible title in rem
and even against the original owner, it cannot be rectified against him. This is
because, forger’s title is voidable and not void. Because forger’s name appear on the
register as the owner, to the public, for all purposes, he is the owner. The text book, The
Law and Practice Relating to Torrens Title in Australasia Vol I by E.A. Francis) ‘page
66,60 & 634 .. At pge 66…”there seems little doubt that, though the powers conferred on
Registrar do involve the exercise of a judicial discretion, they do not extend to
adjudicating upon substantial conflicting claims..” page 634 “..It seems that these powers
cannot be exercised so as to deprive of his interest any registered proprietor who is a
purchaser or mortgagee bona fide and for valuable consideration…” page 655 ‘..the
exercise of the registrar’s powers must be limited to the period before a bona fide
purchaser, or mortgagee acquires a title …”…. “…In this scheme, good faith
purchasers or mortgagees who have taken an interest in the land for valuable
consideration and in reliance on the register, are protected, in keeping with the
motivating principles underlying the land titles system.” Under s. 80(2) of Land
Registered Act (3 of 2012) title cannot be rectified if bona fide buyer was in possession
and acquired for valuable consideration.
16. Under RTA possession passes with transfer:Unlike RLA, under RTA, with transfer
and issue of certificate of title, the possession also is deemed to have passed to the buyer.
As a corollary, since In Moya Drift Farm Ltd. v. TheuriPg. 114 – (Court of Appeal at
Nairobi No: 13 of 1973 (Sir William Duffus, P. Spry, V.P., and Lutta, J.A.) Civil
Appeal 44 of 1972. – EALR pg. 114 (Appeal from the High Court of Kenya – Miller,
J.).. The appellant sued the respondent claiming that it was the registered owner of certain
land on which the respondent was trespassing and who had refused the appellant entry. It
claimed eviction and a perpetual injunction restraining trespass by the respondent. The
judge found that the appellant was the registered owner of the land but that as it had no
possession it could not claim in trespass. The appellant appealed, contending that
possession was unnecessary in view of the Registration of Titles Act. Held: the appellant
was the absolute and indefeasible owner of the land and was entitled to take proceedings
in trespass; at Pg. 115 –“ Mr. Hewitt conceded that it was formerly the law in England
that a person had to have taken possession of land before he could take proceedings in
trespass, but he submitted that this cannot be the law of Kenya, as it would make
nonsense of s. 23 of RTA. I find this argument irresistible and I do not think it is
necessary to examine the law of England. I cannot see how a person could possibly be
described as “the absolute and indefeasible owner” of land if he could not cause a
trespasser on it to be evicted. The Act gives the registered proprietor his title on
registration and, unless there is any other person lawfully in possession, such as a tenant,
I think that title carries with it legal possession.”
17. Exception to indefeasibility of title – there cannot ever be two concurrent titles: The
indefeasibility of title is not absolute. However there are exceptions to the indefeasibility
such as fraud, encumbrances noted on the title, and tenancy under three years with tenant
in possession. Other jurisdictions specifically have enacted law to provide as a further
exception, “the estate of a proprietor claiming under a prior instrument of title”. This is
designed where due to an error in survey or mistake on the part of registrar same land is
included in two titles, in which case the later one is rectified and is paid compensation.
This is not a general exception as otherwise it would be make redundant cardinal
doctrine of indefeasibility of title. However, it ought to be born in mind that Kenya’s
RTA has not been amended to provide for this exception. Under RTA such exception
would also be contrary to the express provision contained in s.22(3) that “ The title of the
proprietor under each fresh certificate of title shall be as valid and effectual in every
respect as if he had been the ORIGINAL GRANTEE in the GRANT of the land
contained in the certificate.” This provision tantamount to invalidate all previous titles in
vesting in LAST bona fide buyer indefeasible title in rem even against the original owner.
What this unequivocally states is that, there can never arise a situation of there being at
the same time two concurrent titles of the same land. In Breskvar v Wall (Supra) at pge
14 last para, “.. He noted, as an important benefit of the new system, “cutting off the
retrospective or derivative character of the title upon each transfer or transmission, so as
that each freeholder is in the same position as a grantee direct from the Crown’. “This is
an assertion that the title of each registered proprietor comes from the fact of registration,
that is made the source of the title, rather than a retrospective approbation of it as
derivative right..” What this tantamount to is that in essence each transfer of land
involves surrender back to the Crown and a fresh grant from the State. Hence because of
s.22(3) there never can be issue of two concurrent titles as latest registration constitutes
final grant or title and all previous ones are deemed buried and of no
consequences. Professor John T. Mugambwa is professor at Murdoch University in
Australia and has to his credit 20 text books. Among these, includes “Principles of Land
Law in Uganda” and ‘Source Book of Uganda’s Land law”. In the “Principles of Land
Law in Uganda” at page 77 para 3 he mentions about this exception of indefeasibility, “
The estate of a proprietor claiming under a prior instrument of title”. If a subsequent
buyer can never have an indefeasible title, then what is the purpose of the Torrens
system? The objective is to save dealers in land from the obligation to inquire about the
history of the legal land history – i.e. how the vendor acquired the land. The person
whose name appears on the certificate is the owner…IN KENYA, APART FROM
OVERRIDING INTERESTS MENTIONWD IN THE ACT AND INTERESTS
ENDORESED ON THE CERTIFICATE, THE ONLY EXCEPTIONS ARE
FRAUD AND MISREPRESENTATIONS
18. LIST OF CASES SITED IN THIS PAPER;
01 Asset Co. Ltd v Mere Roihi (1905) AC 176 – Privy Council: Title frm void
instrument valid – to preserve concept of indefeasibility, burden of proof for
fraud higher and degree of diligence lower – registrar’s duty to scrutinize
each doc as such rules and provisions for registration internal dept matter –
registrar’s power to rectify title cannot be exercised to the prejudice of bona
fide buyer.
02 The Australian Torrens System by James Edward Hogg: All the concepts of
Torrens system of titles are discussed and explained.
02 Boyd v Mayor etc. Wellington (1915) – (Case not found): Unlike RLA,
common law do not apply to RTA – this is to preserve doctrine of
indefeasibility – hence common law principle seller cannot give better title
than he has (non dat qui non habet) do not apply – as such title frm void
instrument valid or forger can trf valid title.
03 Breskvar v Wall (1971) 126 CLR (High Court Aus): Title frm void
instrument valid as such forger can trf valid title – title by registration – as
such register is title and not cert.
04 Cecila Gakui Kinyua & Other v. Nayaga Gichenga, Registrar & Others (287
of 2010) HCCC Milmn Lnd Env {2012} eKLR: Justice P. Nyamweya held no
notice under s.13A of GLA required as RTA exempted under s. 19(3) and
registrar to be party
05 C.R. Patel v Commissioner Land Registration & 2 Other (Judgment Jan
2013), HCCC No. 87 of 2009, Uganda High Court at Kampala (Land
Division): Uganda RTA basically similar to Kenya’s – this Uganda case had
similar facts to subject suit as provisional cert was forged and no Gazette
notice and forged transfer – HELD: As buyer bona fide unaware of fraud,
“to deprive him of title would be to abolish concept of indefeasibility of
title..” – also held prov cert replaces prior one and as effective as previous
one.
Charles Karathe Kiarie & 2 others v Administrators of the Estate of John
Wallace Mathare (Deceased) & 5 others [2013] eKLR – Court of Appeal
Civil App Sup No. 12 of13 – Ruling on: 8th Nov 2013: In this recent case, the
Court of Appeal unequivocally affirmed principles of Torrens system of
titles: (a) Govt, as a keeper of records guarantees indefeasibility of title
against entire world, (b) If anyone suffers loss, Govt compensates, (c) Buyer
06 is not concerned about past irregularities and illegality, (d) Bona fide buyer
notwithstanding infirmity of his author’s title, acquires indefeasible title –
‘called the paradox of registered conveyancing – that the registration
obtained by fraud was void and yet capable of becoming a good root of title
to a bona fide purchaser for value, and (e) The burden of proof of fraud is on
who alleges it and standard of proof is more than a mere balance of
probabilities”
08 D.T. Dobie & Co (K) Ltd v. Joseph Muchina & Another – Civil Appeal 37 of
1998 (Nrb) eKLR: The court should exercise its power to strike out action
for lack of cause of action or otherwise very sparingly.
09 David Peterson Kiengo & 2 Others -v- Kariuki Thuo[2012] eKLR HCCC
180 & 220 of 2011 (Machakos) Judgment: 5th July, 2012: Title of bona fide
buyer valid despite past irregularities and illegalities – ORIGINAL
OWNER’S RECOURSE COMPENSATION AND NOT POSSESSION
10 Deepak Kamani -v- Kenya Anti- Corruption Commission and others Court
of Appeal (152 of 2009): Constitution frowns technicalities to hinder justice
being rendered – pleadings be amended than struck off.
11 Dinshaw Byramjee & Sons Ltd v. A.G. of Kenya – Civil Appeal No. 25 of
1965 – Court of Appeal at Nairobi (Sir Clement de Lestang, Ag. P., Spry and
Law, JJ.A), May 24 and June 8, June 8, 1966): E. A Law Reports Pge 198:
Held: At pge 202 para 5: ‘It is clear, therefore, that whatever irregularities
may have occurred in the registration of earlier instruments, the transfer
and charge created by registered proprietors of the land became on
registration a valid and effectual instrument’.
12 Frazer v. Walker (1967) 649 All E. R or 1AC 585 (HC Aus: Title valid
despite past irregularities and procedure not followed – confirms Gibbs v.
Messer(1891) AC 28 overruled - under Gibbs case buyer was obliged to deal
with registered owner – Gibbs overruled since title upon registration
absolute, buyer need not have to deal with registered owner
13 Gibbs v. Messer (1891) AC 28 or 248 (Privy Council): Propounds concept of
Torrens system and indefeasibility – sanctity of title – buyer take title at face
value and not concerned about past – title from void instrument valid –
buyer entitled to prop and original owner’s right to possession converted to
compensation -under Gibbs case buyer obliged to deal with registered owner
only – however Gibbs case overruled as confirmed in Frazer v Walker – as
title upon registration absolute, buyer need not deal with registered
proprietor – under s 32 of RTA interest passes only upon registration – once
registered, title absolute.
14 Gitwany Invest Ltd v. Tajmal Ltd, Njage, Max Towers, C o L and AG –
HCCC 1114 of 2002: whereas Gitwany suit had two records of title, subject
suit only one title – in Gitwany case since both buyer and orig owner
innocent and since fraud emanated at Land Title Registry, registrar ordered
to pay Kshs 151 million compensation to buyer and costs of both parties.
15 Gitau & 23 Others v A.G & 58 HCCC 548 of 1995 – No notice under GPA
required to enjoin later on another party in the suit
16 Govindji Popatlal -v- Nathoo Visandjee – Civil Appeal No. 41 of 1959 –
Court of Appeal Nairobi June 1960 - E.A.L.R (1960) pg 361: Joint effect
of.1(2), s.23 and s.32 was to override other Acts inc Indian Prop and
Evidence Acts etc.- “Any other conclusion would violate the general
principle of sanctity of title of the register, which is the foundation of
Torrens system of registration.”
17 Hannah Wanagui Ithebu & Other v. Joel Magu & Registrar (86 of 1999)
HCCC Appeal {2005} eKLR: “Bona fide buyer’s title cannot be defeated
because of past illegality ..that is the law’
18 Iqbal Singh Rai v Marck Lecchini HCC 1054 of 2005 (Nrb): Court erred in
depriving bona fide buyer of prop or compensation by following Gibbs v.
Messer (1891) AC 28 or 248 (Privy Council) not knowing Gibbs case had
been overruled - see comments on Gibbs and Walker’s cases herein
19 Prof John Mugambwa – Murdoch University, Australia & Land Law in
Uganda: He has written over 15 books on Land Law incl on Uganda – See
extracts frm his book – see also correspondence with him by Plaintiff –
according to him there are specific exceptions to indefeasibility e.g. fraud but
there cannot be general exception as it would entirely defeat the concept of
Torrens system of title.
20 Josephat Mureu Gabiguta –v- Howse & MC George Ltd HCCC 2545 of 1993
(Nairobi): Under GPA, despite notice defective, suit cannot be dismissed as
long as Govt had all the pertinent info and was not prejudiced.
21 Dr. Joseph Ng’ok – v – Justice Moijo ole Keiwua & five others C.A. Civil
Appeal 60 of 1997 (27/97 VR): s. 23(1) of RTA gives bona fide buyer absolute
sanctity of title upon registration
22 Kenya Bus Service Ltd & Another v Minister of Transport A.G. HCCC 504
2008 Nrb [2012) eKLR - Requirement of notice to Govt under s.13A of
GPA violates citizens right under Article 48 of the Constitution
23 Mutsonga v. Nyati Corrum: Kneller J. High Court Mombasa No: 295/1976
Reported in 1984 page 425 at pge 439 para lines 25-30: To preserve doctrine
of indefeasibility, burden of proof for fraud higher than ordinary civil suit
24 Moya Drift Farm Ltd. v. Theuri Pg. 114 – (CA Nrb 13 of 1973) CA 44 of
1972. – EALR pg. 114: Under RTA possession passes with the registration of
transfer - this is because, what would be purpose of indefeasible title if buyer
did not have possession
25 Regal Constellation Hotel Ltd. Re 2004 CanLII 206 Ontario Court of
Appeal: Buyer not concerned about past - each registered owner in same
position as a grantee from the Govt. - this is enshrined in s.22(3) of RTA
which states that last buyer's title deemed original grant
26 Thomson v. Eadie et al, 2006 BCSC 868 at page 21: Buyer's title valid even if
original grant from Govt invalid - tantamount to buyer not concerned about
past irregularities and illegalities.
27 Virender Gudka & 3 others v A.G HCCC Nrb Env (480 of 2011) eKLR
[2014] consequential losses also payable also payable by registrar for
malfesanace at Registry
28 Wreck Motors Enterprises Ltd -v- Com of Lands, Salpar Singh, NCC &
Chemo Ent, CA 71 of 1997: Two Letter of Allotments were issued – however
2nd allottee was registered and was issued cert who sold it to a bona fide
buyer – as 2nd allottee was registered, his title under s.23(1) of RTA was
indefeasible.
19.
20. SECTION: 19: KENYA CONSTITUTION – APPLICATION AND
PRINCIPLES OF INTERPRETATION – DETAIL EXPOSITION
21. CONSTITUTION MERELY SKELETON OR FRAMEWORK OF LAWS –
COURT TO PUT FLESH AND SPIRIT TO IT – TO BE INTERPRETED
BROADLY AND READ WITH ANCILLARY LAWS – BILL OF RIGHT TO
OWN PROPERTY – COURT ERRED HOLDING TITLE UNDER RTA NULLITY
AB INITIO UNDER ARTICLE 40(6) – NO SUCH PROVISION IN REPLEALED
CONSTITUTION – NO RETROSPECTIVE EFFECT OF CURRENT
CONSTITUTION.
22. Court erred in interpretation of Constitution and declaring title nullity ab initio
under Common law and Constitution: 19-A Title nullity under common law: (for
detail see 23, 25 & 28): While court not realizing that common law and equity did not
apply to RTA, the court has held title nullity ab initio based on common law doctrine that
seller cannot transfer better title than he has. This is absolutely contrary to the cardinal
principle of RTA. To preserve the doctrine of indefeasibility, firstly, s. 22(1) of
RTA assures indefeasibility of title in rem to a buyer, secondly under s. 22(3) buyer’s
title is deemed as new GRANT thereby extinguishing all past titles and interest. It also
tantamount that buyer is not concerned about the past record, and thirdly, as the common
law and equity did not apply to RTA, title from void transfer would be valid i.e. a forger
can transfer a valid title as explained in detail elsewhere herein. Whereas s.163 of RLA
expressly provides that Act is subject to the “common law of England as modified by
equity”, so that doctrine of indefeasibility is not undermined, RTA does not have such
provision.
No retrospective effect of Article 40(6) of current constitution: (see for detail section
23(l) herein): Article 50(2)(n) of current Constitution provides that every accused has
right, “not to be convicted for an act or omission that at the time it was committed or
omitted was not an offence..” The repealed Constitution in fact did not have provision
such as Article 40(6). The court, therefore, had been wrong in holding title nullity ab
initio in respect of illegality prior to current Constitution. The detail exposition on law in
respect of retrospective is given herein in section 23(l).
19-B. Court to add flesh and spirit to the bones or laws – provisions of Constitution
general and vague: The Article 40 (6) of the Constitution states ‘The rights under this
Article do not extend to any property that has been found to have been unlawfully
acquired’. This provision indeed is very general, wide and ambiguous. The term
‘acquired’ could imply any transfer – current or past one, or any owner or only the
defrauder. Also term ‘unlawfully’ is wide. There are degrees of unlawful acts – from a
felony to merely spitting in the street. For instance in the case of transfer of property, if
application for registration was not signed, or property was undervalued for stamp duty or
to expedite registration, a favour was asked of official, all such instances could be
deemed unlawful. As such, it is absolutely incumbent that provisions of Constitution as
explained in detail herein has to be liberally and broadly construed to befit appropriate
circumstances. This responsibility has been expressly assigned to the legislature and court
by filling flesh and spirit to bare bone provision of Constitution.
19-C Constitution merely framework or bare bones – legislature and court to fill it
with flesh and spirit: While Constitution is a supreme or paramount document of dogma
and law, it is barely few pages and therefore cannot spell out or encompass all the detail
laws of land. It is indeed bare bone of laws or is like a mere framework of a building.
Until finishing work is completed, the building cannot be used for occupation, though
frame or structure is a critical part of building. The constitution leaves on legislature and
court to finish the building by putting flesh into the framework. Hence to interpret a
provision such as Article 40(6), it has to be looked in the context of detail laws that have
been promulgated or enacted, namely registration of titles Acts such as RTA and
LRA, Bill of Rights under the Constitution protecting right of property of citizen, and
provisions regard to payment of compensation when property is expropriated.
Unfortunately court has construed Article 40(6) by taking only the literal meaning of it
and instead of declaring the title of actual defrauder nullity also has ruled innocent
buyer’s title nullity. Although Constitution is a brief document, since its language is
philosophical and broad, it encompasses all aspects of life for governance of an ideal
nation. However, it relies on legislature and court to formulate detail laws within the
spirit and parameter that has been laid down based on Article 259(1) which provides that
“This Constitution shall be interpreted in a manner that— (a) promotes its purposes,
values and principles; (b) advances the rule of law, and the human rights and
fundamental freedoms in the Bill of Rights; (c) permits the development of the
law”. Because it is merely a skeleton or framework of laws, it imposes serious
responsibility of ‘DEVELOPING THE LAW” on the shoulder of legislature and court.
Hence court should not take this duty lightly by merely taking a literal meaning of a
provision and depriving innocent owner of his property that Bill of Right has specifically
assured him. How broad could a provision be – for instance, just as an analogy, say it
used a term that a vehicle be used for transportation. The vehicle could mean motorcycle,
tractor, bus or car. It is therefore, left to the discretion of legislature and court to
designate appropriate vehicle for the purpose. When it states that each citizen has right to
own a property, it leaves rest of ancillary detail, such as of tenure, allotment, title,
mortgage and lease for legislature to enact. Hence correct meaning and purpose of a
provision of Constitution could only be derived in the light of subordinate legislations.
19-D. Article 19 of Constitution: “(1) The Bill of Rights is an integral part of Kenya’s
democratic state and is the framework for social, economic and cultural policies. (2). The
rights and fundamental freedoms in the Bill of Rights— (a) belong to each individual and
are not granted by the State, (b) do not exclude other rights and fundamental freedoms
not in the Bill of Rights, but recognized or conferred by law, except to the extent that
they are inconsistent with this Chapter”. This Article indeed confirms that the provisions
of Constitution are mere bare bones or framework and as provided under Article 259(1),
it is the responsibility of legislature to interpret it broadly and develop laws to add flesh
to it. If court purported to read only literal meaning, it would be against the spirit of the
Constitution and unjust. Article 68: “Parliament shall— (a) revise, consolidate and
rationalize existing land laws; (b) revise land use laws in accordance with the
principles set out in Article 60 (1); and (c) enact legislation— (i) to prescribe minimum
and maximum land holding acreages in respect of private land; (ii) to regulate the manner
in which any land may be converted from one category to another; (vii) to provide for
any other matter necessary to give effect to the provisions of this Chapter”. This
confirms the duty of legislature and court to develop the laws. Hence, to interpret an
Article or provision, it is critical to look at it in the light of subordinate statute enacted by
legislature. Hence, it is paramount that Article 40(6): ‘The rights under this Article do not
extend to any property that has been found to have been unlawfully acquired’ has to be
read with the provisions of legislations, such as registrations of titles Acts about sanctity
or indefeasible of title granted to last bona fide buyer which tantamount to that such
innocent buyer’s title can never be nullity ab initio because of past illegality.
i. In Hannah Wangui Ithebu & Other v Joel Nguigi Magu, The Land Registrar
Muran’a & Other Civil Appeal No. 86 of 1999 – [2005] eKLR High Court at
Nairobi: Justice Visram unequivocally reaffirmed the decision of Court of appeal
in Nairobi Permanent Markets Society & other eleven – v – Salima Enterprises
and NCC Appeal No. 185 of 199 that despite past illegality title of a last bona
fide buyer was indefeasible under s. 23(1) of RTA. Full detail of Hannah’s case is
given elsewhere herein. Unfortunately, despite this decision of superior Court of
Appeal, High court incorrectly applying common law doctrine, have been
declaring titles of bona fide buyer nullity under RTA.
ii. Dr. Joseph Ng’ok v. Justice Moijo Ole Keiwua and Others, Court of Appeal,
Civil Appeal 60 of 1997 (27/97 Nrb) – In this suit despite past illegality, the title
of last bona fide was held indefeasible. The ruling stated, “Section 23(1) of the
Act gives an absolute and indefeasible title to the owner of the property. The title
of such owner can only be subject to challenge on grounds of fraud or
misrepresentation to which the owner is proved to be a party. Such is the sanctity
of title bestowed upon the title holder under the Act. It is our law and law takes
precedence over all other alleged equitable rights of title. In fact the Act is meant
to give such sanctity of title, otherwise the whole process of registration of titles
and the entire system in relation to ownership of property in Kenya will be placed
in jeopardy”.
iii. Recent cases recognizing concept of Torrens system: I it is a relief that at last
courts have begun to understand and apply the doctrines of Torrens system, in
particular the concepts of – (i) as buyer takes the title at the face value, he is not
concerned about the past irregularities and illegalities, and as such (ii) buyer
entitled to the property and original owner fair market compensation like in
compulsory acquisition. Following are recent cases affirming doctrines of Torrens
system.
b.Charles Karathe Kiarie & 2 others v Administrators of the Estate of John Wallace
Mathare (Deceased) & 5 others [2013] eKLR – Court of Appeal Civil App Sup No.
12 of13 – Ruling on: 8th Nov 2013 (case is attached): In this recent case the Court of
Appeal unequivocally affirmed principles of Torrens system of titles: (a) Govt, as a
keeper of records guarantees indefeasibility of title against entire world, (b) If anyone
suffers loss, Govt compensates, (c) Buyer is not concerned about past irregularities and
illegality, (d) Bona fide buyer notwithstanding infirmity of his author’s title, acquires
indefeasible title – ‘called the paradox of registered conveyancing – that the registration
obtained by fraud was void and yet capable of becoming a good root of title to a bona
fide purchaser for value, and (e) The burden of proof of fraud was on who alleges it and
standard of proof was more than a mere balance of probabilities”.
Following are excerpts from an article published in Kenya Law Reports: “The Law, the
Procedures and the Trends in Jurisprudence on Constitutional and Fundamental Rights
Litigation in Kenya:” By Ongoya Z. Elisha 2008: (Article’s excerpts attached)
19-H Statutory interpretation is the process by which courts interpret and apply
legislation. Some amount of interpretation is always necessary when a case involves a
statute. Sometimes the words of a statute have a plain and straightforward meaning. But
in many cases, there is some ambiguity or vagueness in the words of the statute that must
be resolved by the judge. To find the meanings of statutes, judges use various tools and
methods of statutory interpretation, including traditional canons of statutory
interpretation, legislative history, and purpose.
19-I RTA and LRA overrides other Acts: Apart from taking into account these
factors in construing meaning of Article 40(6), the court also needs to heed to s.1(2) of
RTA which states, “Except so far as is expressly enacted to the contrary, no Act in so far
as it is inconsistent with this Act shall apply or be deemed to apply to land,
whether freehold or leasehold which is under the operation of this Act”. What it means is
that, if a provision of any Act is repugnant to RTA, unless it itself expressly refers to the
RTA, the provision of RTA would prevail over that Act. This provision makes RTA
override all other Acts because, if title was subject to others laws, it would defeat the
cardinal principle of “sanctity of title” or “conclusiveness of title”. Although the
Constitution is supreme, however, to aid in the interpretation of its provision such as
Article 40(6), the provisions of RTA becomes very much relevant or helpful and ought to
be taken into account. As the legislature has enacted RTA in compliance with the spirit to
develop detail laws, it is incumbent on the court to take notice of provisions of RTA. This
is because Article 40(6) do not expressly refer to RTA to override it. In view of above,
the obvious and most logical interpretation of Article 40(6) is that, it applies only to
actual defrauder and not innocent buyer.
19-J Right to own property and protection of title: The Bill of Rights under Article
40(1) expressly provides citizen’s right to own property and thereby impliedly also
protection of title or ownership. Article 40(1) states “Subject to Article 65, every person
has the right, either individually or in association with others, to acquire and own
property— (a) of any description; and (b) in part of Kenya”. To that end, if property is
acquired compulsorily or if owner’s right to it is prejudiced by any provision of the
Constitution, the citizen has to be compensated or appropriate relief be given. The
Article 84 (6) of old Constitution (still applicable) in this respect re-affirms original
power of High Court to give relief to those who are prejudiced by the provision of the
Constitution. The RTA, which is enacted with the blessing of Constitution, has detail
laws for registration of titles, and while assuring indefeasibility of title to the last bona
fide buyer, in compliance with the spirit of Constitution also obliges the Government to
under s. 24 pay FULL COMPENSATION to the owner who is deprived of his property.
This is a special type of compensation in addition to normal common law under the
negligence. Since the prime objective of both the Constitution and also RTA is to ensure
that innocent buyer’s right is not prejudiced, it would be gross injustice to give a narrow
or literal interpretation to the Article 40(6) ‘The rights under this Article do not extend to
any property that has been found to have been unlawfully acquired’ and deprive a bona
fide buyer of his property without any compensation or relief. This is particularly when
harm to the innocent buyer is due to the negligence of officials at the Land Registry and
buyer having relied on the statute (RTA) promulgated by Parliament with the blessing of
the Constitution, the supreme authority, offering him protection of title. Hence, it is
respectfully submitted that the obvious and logical interpretation of “unlawfully
acquired” in the Article 40(6) means the actual defrauder and not the innocent buyer.
This is why the legislature who had to formulate detail laws have enacted RTA to govern
the registration of titles and have specifically provided therein, concept of indefeasible or
absolute title to the last registered owner. The same concept or principle has been carried
forward into new LRA.
19-K Constitutional right for compensation: To protect interest of a citizen who is
adversely affected by the provisions of Constitution, the Constitution under Article 84 of
old Constitution reaffirms original power High court to grant relief to such citizen. This
Article is carried forward in the new Constitution. Article 19 of new Constitution
provides that “ Until the Chief Justice makes the rules contemplated by Article 22, the
Rules for the enforcement of the fundamental rights and freedoms under section 84 (6) of
the former Constitution shall continue in force with the alterations, adaptations,
qualifications and exceptions as may be necessary to bring them into conformity with
Article 22.” When anything is taken away from an individual citizen or his right is
prejudiced in the interest of public at large, it would be unfair that one individual takes
the entire brunt. Since all citizens would have benefitted, the Constitution specifically
provides that such individual be compensated as in the case of compulsory
acquisition. In JAMES NYAGA V. A.G MISC CIVIL 1732 OF 2004 (Nrb Law Courts
[2007] eKLR: court declared bona fide buyer’s title nullity ab initio (it is submitted court
erred in this respect) under Article 75 old Constitution (Article 40(6) new Constitution).
However, to preserve the spirit of Constitution in protecting rights of innocent citizens, in
pursuance of Article 84(6) old Constitution (still valid), it awarded compensation to the
bona fide buyer for his loss. It stated. “…Are the Applicants entitled to the remedies
sought? Under s 84 of the of Constitution (still valid), the court has inherent and
unfettered jurisdiction to grant remedies available to ensure that the ends of justice are
met. In doing so, the court will endeavour to balance the interests of the Applicants as
against those of the general public…