JUDGMENT OF THE COURT
In a forced sale by public auction of a parcel of land known as L.R. 21/1/45, Nairobi, which was held on 12th July, 1988, the appellant, Ndiuco Limited (under the appellant) was the highest bidder at Kshs.500,000/=. The property was then knocked down to it after which it paid the purchase price. The property was sold in execution of a decree in the First Class Magistrate's Court, Nairobi, Civil Case No.308 of 1984, in favour of the respondent herein, City Council of Nairobi (under, the respondent) which was the Plaintiff with one John M. Kigwaini, as the defendant. The suit was for the recovery of outstanding rates from the defendant as the ratepayer respecting the above property.
Notwithstanding the sale the respondent secretly allowed the rate payer to settle the arrears of rates and accordingly issued him with a rate clearance certificate, which he later used to effect a transfer of the property to a third party. On being made aware of that fact the appellant br…