Kenya Anti-Corruption Commission v Sindo Distributors Limited & 27 Others [2020] eKLR.

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In the Environment and Land Court at Kisumu; ELC No. 420 of 2015 Consolidated with ELC No. 416, 421, 672, 684, 711, 713, 715, 773, 776 & 777 of 2015; Kenya Anti-Corruption Commission v Sindo Distributors Limited & 27 Others.

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Summary Significance:

This is a suit for recovery of illegally alienated and allocated public land belonging to and reserved for use by the Kenya Railways Corporation. The Commissioners of Land illegally alienated the land through allocation to private persons while knowing that the land was unavailable and they had no such powers to allocate alienated public land. The court thus held that any allocations and subsequent transfers or charge were null and void ab initio.

Applicable laws:

Sections 2, 3 and 7 of the Government Land Act, Cap 280, Laws of Kenya (Repealed)
Section 2 of the Registration of Titles Act (Repealed)

Brief Facts:

The Plaintiff sought recovery of several parcels of land in Kisumu Municipality/Block 7 from the Defendants on the grounds that the suit parcels rightly fully belonged to the Kenya Railways Corporation and were illegally acquired by some of the Defendants upon the issuance of Leases or allotments by the 3rd, 16th and 27th Defendants. Some of the Defendants subsequently transferred the parcels they acquired to other Defendants. The land was vested in the East African Railways and Harbours Administration; the East African Railways Corporation and subsequently the Kenya Railways Corporation following the collapse of East Africa Community. The Registry Index Map for Kisumu Block 7 and the survey plan for Kisumu Township prepared on 24th August 1935 indicated that the land was the railway reserve and belonged to the Corporation. The Plaintiff sought in the consolidated suit declarations that; the issuance of Leases by the 3rd Defendant to the 1st Defendant over Kisumu Municipality Block 7/410; to the 8th – 12th Defendants over Kisumu Municipality Block 7/465; to the 19th Defendant over Kisumu Municipality Block 7/524; to the 20th Defendant over Kisumu Municipality Block 7/529 and to the 28th Defendant over Kisumu Municipality Block 7/511 was null and void ab initio and ineffectual to confer any right, interest or title upon the 1st, 8-12th, 19th, 20th and 28th Defendants respectively in the first instance. Consequently, the subsequent transfers of leases issued in respect of the suit properties and issuance of Certificates of Lease over Kisumu Municipality Block 7/410 to the 2nd Defendant over, Kisumu Municipality Block 7/465 to the 13th Defendant and thereafter to the 14th Defendant; and Kisumu Municipality Block 7/524 to the 17th and 18th Defendants was null and void ab initio and ineffectual to confer any right, interest or title upon the 2nd, 13th, 14th, 17th and 18th Defendants. The Plaintiff also sought declarations that the issuance of an allotment by the 3rd Defendant to the 4th and 5th Defendants over Kisumu Municipality Block 7/467 was null and void ab initio and ineffectual to confer any right interest or title upon the 4th and 5th Defendants in the first instance. Consequently, the subsequent transfer to the 2nd Defendant and charge to the 7th Defendant null and void and ineffectual to confer any valid right, interest or title. A declaration that the issuance of leases by the 16th Defendant to the 15th Defendant over Kisumu Municipality Block 7/478; to the 22nd Defendant over Kisumu Municipality Block 7/514; and to the 23rd Defendant over Kisumu Municipality Block 7/498 was null and void ab initio and ineffectual to confer any right, interest or title upon the 15th, 22nd and 23rd Defendants in the first instance. A declaration that the issuance of leases by the 27th Defendant to the 26th Defendant over Kisumu Municipality Block 7/539 was null and void ab initio and ineffectual to confer any right, interest or title upon the 26th Defendant in the first instance. Subsequently the Plaintiff sought orders for rectification of the land register by cancellation of the leases over parcels Kisumu Municipality Block 7/410, 467, 465, 478, 524, 529, 514, 498, 539, and 511 and Certificates of Lease issued to the 2nd, 14th, 15th, 17th, 18th, 21st, 22nd, 23rd, 26th and 28th Defendants respectively as to restore the suit properties to the Kenya Railways Corporation. The Defendants contended that the entire process of alienating, allocating and registration of Kisumu Municipality Block 7/410, 465, 539 and 511 was procedural, regular and lawful as per the annexed letters of allotment, official receipts of payment, letters from the Commissioner of Lands and Certificates of Lease. That the alienation process went through the proper steps leading to approval of the alienation by cabinet and accepting the delegation of the powers of the President to the Commissioner of Lands under Section 7 of the Government Lands Act. That there was no resolution of cabinet or instructions from the board of the Corporation to the Plaintiff to institute a suit against the Defendants. That therefore the suit was an abuse of the court process. Defendants denied the particulars of fraud and stated that the suit was incurably defective in view of the provisions of the Limitation of Actions Act, and was an abuse of the process of the court in view of Section 7 and 136 (2) of the Government Lands Act.

Issues for Determination:

I. Whether the suit properties constitute part of land set apart as a railway reserve and vested in the Kenya Railways Corporation.
II. Whether the 3rd, 16th and 27th Defendants lawfully alienated the suit properties to the 1st, 4th, 5th, 8th – 12th, 15th, 19th, 20th, 22nd, 23rd, 26th and 28th Defendants
III. Whether the 2nd Defendant lawfully charged parcel 467 to the 7th Defendant
IV. Whether the 2nd, 13th, 14th, 17th and 18th Defendants were bona fide purchasers for value without notice of defects in title.

Holding:

The Registry Index Map of Kisumu Municipality Block 7 sufficiently established that the suit parcels as indicated in the Registry Index Map were located within the area indicated as the railway reserve in the Survey Plan F/R No. 43/53 and the suit properties constituted part of land vested in the Kenya Railways Corporation. It was therefore clear that the area indicated in the survey plan had been set aside and reserved as a public utility land. That having established that the suit properties were within land set aside for public use, the onus was on the 1st, 4th, 5th, 8th – 12th, 15th, 19th, 20th, 22nd, 23rd, 26th and 28th Defendants to prove that the suit properties were lawfully alienated in their names which burden they failed to discharge The court further held that the Commissioner of Lands had no powers to alienate public land under the Government Lands Act and the evidence adduced by the Defendants did not demonstrate that the President had authorised the Commissioner of Lands to alienate the suit properties, be it orally or in writing. The Court cited the decision of the Court of Appeal in Henry Muthee Kathurima v Commissioner of Lands & another [2015] eKLR where it was stated: β€œThe Commissioner of Lands had no power to alienate public land and any action taken without due authorization is a nullity. We cite the case of Said Bin Seif v. Shariff Mohammed Shatry, (1940) 19 (1) KLR 9, and reiterate that an action taken by the Commissioner of Lands without legal authority is a nullity; such an action, however, technically correct, is a mere nullity.” The Court found that the 2nd, 13th, 14th, 17th and 18th Defendants purchased their respective parcels on the strength of undertaking an official search and nothing in the evidence on record pointed to these Defendants having participated in any action or omission amounting to fraud or illegality when acquiring their respective suit parcels. However, the court went further to clarify that sections 81 (1) (b) and 144 (1) (c) of the repealed Land Registration Act provided that any person suffering damage by reason of any error in a copy of or extract from the register or in a copy of or extract from any document or plan certified under the Act, shall be entitled to indemnity. It however found that the Defendants were not entitled to indemnity from the State. Consequently, the court allowed all the declaratory orders and cancelled the charge. However, the court found that there was no proof of fraud and therefore did not award general damages.

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