Two brothers win case involving property worth Sh100m in Westlands

Friday, August 6th, 2021 00:00 |
Court Hammer

A businessman Knatilal Maganbhai Patel and a company Fairmile Investments Limited have suffered a blow after the Environment and Lands court ruled that they obtained illegally a property situated in Westlands worth Sh100 million.

Two brothers, Rajendra Sanghani and Jayant Rach won the land dispute case against the company and the businessman, Maganbhai Patel who is also their brother, after the court issued a permanent injunction restraining them from interfering with the right and quiet possession and enjoyment of the suit property located in westlands.

Justice Samson Okong’o of Environment and Land’s Court ruled that he was satisfied from the evidence on record that the land was obtained illegally by the businessman, Maganbhai Patel and Fairmile Investments Limited.

The Judge noted that the suit property was at all material times registered in the name of Maganbhai Javerbhai Patel alias M.J. Patel who was the father to the siblings.

He sold it to a company called H.P.Youtan but he died before transferring the suit property to the said company.

Grant of letters of Administration in respect to his estate were issued to their brother Maganbhai in 1975 who in turn sold the land to Fairmile Investment company fraudulently.

Justice Okong’o noted that the high court had made an order on August 5, 1985 vesting the suit property in H.P Youtan and the vesting order was registered against the title deed of the suit property.

“The 2nd defendant (Maganbhai) ceased to be the owner of the property on August 9, 1985 when the property was vested on H.P Youtan through a high court order. The Commissioner of Lands having approved H.P Youtan’s application for extension of the lease in respect of the suit property, had enforceable reasonable legitimate expectation that it would be granted extension of the said lease,” noted the Judge.

“There is no doubt the 2nd defendant obtained renewal of the lease in respect of the suit property through misrepresentation, fraud and deceit .The suit property was also not available for allocation to the 2nd defendant.,”

The two brothers; Rajendra Sanghani and Jayant Rach who are the administrators of the disputed property had filed the suit in 2009 against their other brother, Maganbhai Patel and the company.

They accused their brother of fraudulently selling the property to Fairmile Investment Limited at sh 12 million price on 17th November 2008 despite the existence of the 1973 agreement and an order vesting the suit property to H.P Youtan.

They argued that the company's claim over the suit property which belonged to their father was illegal and that the sale of the suit property by their brother to the said company was fraudulent, illegal, null and void.

Justice Okong’o agreed with them and ruled that the transfer of the suit property was null and void as it was done fraudulently.

Two lawyers who facilitated the sale are facing criminal charges at Kiambu law courts.

The Judge noted that a title acquired through irregular and fraudulent process is not a valid title in law.

“From the evidence on record it has been proved that the 2nd defendant (Maganbhai) through his purported attorneys was a party to the fraud and misrepresentation that led to the issuance of the impugned title,” ruled the Judge.

More on News