The Court of Appeal’s ruling in Tabitha Wathoya Ndirigiri v. Mohamed Mutuku Mutisya Nzioka & 4 Others illustrates a critical point in property law: fraud, once proved, nullifies subsequent claims—even from alleged innocent purchasers. The dispute arose from a partnership where each of three parties owned a 33.33% stake. While the appellant was unwell, her co-partners orchestrated a sale and transfer of the partnership property using forged signatures.
Crucially, the second respondent had already been criminally convicted for the forgery, but the High Court dismissed this as inadequate proof of fraud. The Court of Appeal disagreed. It reaffirmed that criminal convictions tied to the same transaction are strong evidence of fraud and should not be ignored in civil proceedings.
The purported “innocent” fifth respondent claimed to have bought the property without
knowledge of the dispute. However, the court noted several red flags:
- The appellant had registered a caveat prior to the sale;
- The property was visibly dilapidated at the time of purchase;
- No adequate due diligence was demonstrated by the buyer;
- The buyer failed to explain how he came to know the property was for sale or how he
engaged the vendors.
The Court held that had proper inquiries been made, the purchaser would have discovered the ongoing litigation and ownership dispute. Thus, he could not be considered a bona fide purchaser without notice.
This case serves as a strong precedent: anyone acquiring real estate must thoroughly investigate title history, pending caveats, and ongoing litigation. Ignorance is not a shield where evidence of irregularity is readily available.