ARVIND SHAH & 7 ORS V. MOMBASA BRICKS & TILES LIMITED & 5 ORS
(2023) JELR 112232 (SC)
Supreme Court
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PETITION NO. 18 (E020) OF 2022
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28 Dec 2023
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Kenya
Coram
Mwilu, DCJ & VP
Wanjala, SCJ
Njoki, SCJ
Lenaola, SCJ
Ouko, SCJ
Appearances
Francis Wasuna & Hannington Amol for the Appellants (ALP Kenya Advocates)
Mohammed Nyaoga SC for the 1st & 2nd Respondents (Mohammed Muigai Advocates LLP)
Wamuti Ndegwa for the 3rd & 4th Respondents (Ndegwa & Sitonik Advocates)
Ambrose Weda for the 5th & 6th Respondents (Weda & Co. Advocates)
Judgement
<p style="text-align: center"><strong><u>JUDGMENT OF THE COURT</u></strong></p><p style="text-align: justify"><strong>A.    INTRODUCTION</strong></p><p style="text-align: justify"><strong>[1] </strong>This Petition of Appeal dated 28th July, 2022 challenges the decision of the Court of Appeal in <em>Civil Appeal No. 117 of 2018 </em>delivered on 4th April, 2019. It is filed pursuant to the Court’s Ruling dated 8th July, 2022. In the said Ruling, we granted the appellants leave to appeal to the Supreme Court, limited to the following issues certified as being of general public importance:</p><p style="text-align: justify"><em>i. Whether a constructive trust can be imported into a land sale agreement to defeat a registered title therefrom; and</em></p><p style="text-align: justify"><em>ii. Whether a constructive trust can be imported into a shareholding of a company as to disentitle a registered holder of shares in a company obtained for valuable consideration.</em></p><p style="text-align: justify"><strong>B. BACKGROUND</strong></p><p style="text-align: justify"><strong>[2] </strong>Sometime in May, 2005, the respondents experienced financial challenges as a result of debts incurred by the 1st respondent, and secured by Plot No.500/VI/Mainland North (Title No. C.R. 4226) (suit property) registered in the name of the 1st respondent. T…</p>