14/05/2023
Case review of Dina Management Limited v. County Government of Mombasa and others at the Court of Appeal, using the IRAC method;
Issue:
The issue in the case of Dina Management Limited v. County Government of Mombasa and others was whether Dina Management Limited's title to land, acquired from a seller who had a registered title but whose process of acquisition was not in compliance with the applicable law at the time, was valid, and whether the County Government of Mombasa's claim to the land was proper.
Rule:
Under Kenyan law, a person who purchases property from a seller who has no legal right to sell the property does not acquire a valid title to the property, even if the purchase is made in good faith and for valuable consideration. However, if the seller has a registered title to the property, the purchaser can acquire a valid title if the seller's title was not obtained fraudulently, and the purchaser did not have notice of any defects in the title.
Application:
In the case of Dina Management Limited v. County Government of Mombasa and others, Dina Management Limited had purchased land from a seller who had a registered title to the property, but the process of acquiring the title was not in compliance with the applicable law at the time. Despite this, Dina Management Limited claimed that it was a bona fide purchaser for value and that its title to the land was valid. The County Government of Mombasa, on the other hand, claimed that the land was public land and had been reserved for a public road.
The Court of Appeal held that Dina Management Limited's title to the land was not valid, as the seller had no legal right to sell the land, even though they had a registered title. The court found that the seller's title was tainted, as it had been obtained in contravention of the law. As a result, Dina Management Limited could not acquire a valid title to the land. The court also found that the County Government of Mombasa's claim to the land was proper, as the land had been reserved for a public road.
Conclusion:
In conclusion, the Court of Appeal held that Dina Management Limited's title to the land was not valid, as the seller had no legal right to sell the land, even though they had a registered title. The court found that the seller's title was tainted, as it had been obtained in contravention of the law. As a result, Dina Management Limited could not acquire a valid title to the land. The court also found that the County Government of Mombasa's claim to the land was proper, as the land had been reserved for a public road. The court's decision underscores the importance of conducting proper due diligence and ensuring that all necessary legal requirements are met before purchasing property to avoid such situations.