Abubaker v Principal Registrar of Crown Lands and Others (Civil Appeal No. 8 of 1953 and Miscellaneous Civil Suit No. 48 of 1952 (Consolidated))
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that a vesting order is a conveyance within the meaning of both the Crown Lands Ordinance and the Stamp Ordinance. The Registrar was entitled to refuse registration until the requirements of the Municipalities Ordinance and Local Government (Rating) Ordinance were met, including production of a certificate that municipal rates had been paid. The vesting order was liable to ad valorem stamp duty as a conveyance under Article 23 of the First Schedule to the Stamp Ordinance, not as a mortgage instrument under Article 62.
Outcome
Appeal dismissed; vesting order held liable to stamp duty and registration refused until statutory requirements met
Facts
The appellant was mortgagee of land in Nairobi. She obtained a court order for sale by auction and purchased the property for slightly less than the amount due. The mortgagor owed the City Council over Sh. 2,000 in rates. Under the Municipalities Ordinance and Local Government (Rating) Ordinance, no transfer could be registered without a certificate from the Town Clerk that rates had been paid. The mortgagor had no funds to obtain the certificate and could not effectively convey the premises. The appellant applied under the Trustee Ordinance for a vesting order. The Supreme Court initially refused but the Court of Appeal ordered that a vesting order should issue. When the appellant presented the vesting order for registration, the Registrar of Crown Lands impounded it as insufficiently stamped. The Senior Collector of Stamp Duties assessed duty of Sh. 2,487/50 as a conveyance. The appellant appealed both the registration refusal and the stamp duty assessment.
Issues
- Whether the Principal Registrar of Crown Lands was justified in refusing to register a vesting order without production of a certificate from the Town Clerk that municipal rates had been paid.
- Whether a vesting order obtained by a mortgagee-purchaser constitutes a 'conveyance' liable to ad valorem stamp duty under the Stamp Ordinance.
Orders
- Appeal dismissed.
- Appellant to pay costs of the appeal.
- Appellant to pay costs of the case stated.
Rules and key headnotes
Legislation cited (10)
- Crown Lands Ordinance (Cap. 155) s.126
- Crown Lands Ordinance (Cap. 155) s.140
- Municipalities Ordinance (Cap. 136) s.95
- Local Government (Rating) Ordinance (Cap. 137) s.29
- Stamp Ordinance (Cap. 259) s.2
- Stamp Ordinance (Cap. 259) s.59
- Stamp Ordinance (Cap. 259) s.60
- Stamp Ordinance (Cap. 259) First Schedule Article 23
- Stamp Ordinance (Cap. 259) First Schedule Article 62
- Trustee Ordinance (Cap. 46) s.47
Cases cited (2)
- In re Calcott and Elvins contract (1898) 2 Ch 460
- Aminabhai d/o Abubaker v City Council of Nairobi (1952) 19 EACA 52
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.