A lawyer has been ordered to pay the National Social Security Fund (NSSF) Sh6 million for giving a false undertaking to clear the amount on behalf of his client over a land sale transaction.
High Court Judge David Majanja ordered Ronald Morara Ngisa to pay the amount to NSSF Board of Trustees within 30 days, failure to which the amount will attract a 12 per cent interest penalty from the time the dispute started in 2016.
“He has not shown that he complied with the undertaking to transfer the money to NSSF even after being paid by the land’s purchaser. His defence was a bare denial. As such, I have no option but to allow the application and order that he pays the money to NSSF,” ruled Justice Majanja.
The dispute started in 2016 when NSSF entered into an agreement with Rahab Wanjiru Mbugua for the sale of a piece of land in Nyayo Embakasi Estate within Nairobi County.
However, Ms Wanjiru notified NSSF that she wanted to transfer the land to George Ngatia Gichuru and his wife Lydia Wambui Ngatia who were being represented by Ngisa through his law firm, Morara Ngisa and Company Advocates.
NSSF received a professional undertaking from the lawyer that the firm would pay the agreed sale price of Sh6 million once they release the land registration titles to the purchaser.
“NSSF confirmed and acted on the undertaking by releasing the documents on January 18, 2016. The documents included the signed transfer document in triplicate and the letter of consent. The Rent and Rates Clearance Certificates were also forwarded to the lawyer on May 23, 2016,” said the judge.
The purchasers, Mr Gichuru and his wife. stated that they had instructed the lawyer to pay NSSF the agreed sale price from their client account upon receiving the land’s title papers.
NSSF argued that despite releasing the title deed to the lawyer who then transferred it to the purchaser, he refused to release the payment, forcing them to file the suit.
Justice Majanja ruled that once a lawyer gives a professional undertaking to clear a debt, he must carry the burden even if the client he was representing fails to fulfill his part of the bargain.
“The lawyer’s own clients, the purchasers, admit that the documents were indeed received by their counsel and the transfer in their favour registered. There is also sufficient evidence that the lawyer has not paid over the money yet the purchasers confirm that they paid the money to the law firm,” the judge said.
Justice Majanja ruled that since Ngisa operates his law firm with his wife, Alice Nyomenda Oeri, as his partner, they are both liable to pay the money owed to NSSF.
He further ordered the law firm to pay NSSF additional Sh250,000 as costs for instituting and litigating the case.