Kenya Anti-Corruption Commission vs. Wak Limited & 3 Others (2006) (Unreported)

Case Caption:

In the Environment and Land Court at Nairobi; ELC Suit No. 1334 of 2006; Kenya Anti-Corruption Commission (Plaintiff) v Wak Limited, Redwood Properties Limited, Sammy Silas Komen Mwaita & S.K.W. Wangila (the 1st – 4th Defendants respectively)

Case URL:

(Unreported)

Summary Significance:

N/A

Applicable laws:

Section 2 of the Government Lands Act Cap 280; Laws of Kenya (Repealed)

Brief Facts:

The Plaintiff’s investigations established that parcels of land known as LR No. 209/6337 (I.R. No. 85631) falling within a road reserve set aside for an interchange identified as Southern Bypass and Mombasa Road had been unlawfully registered in the names of the 3rd and 4th Defendants. The 1st Defendant, first allotee, transferred the grant to the 3rd Defendant on 30th march 2001. In view of the foregoing, the Plaintiff filed a suit seeking orders for the cancellation of the grant in favour of the 1st Defendant on grounds of illegality, the cancellation of the transfer in favour of the 2nd Defendant, a permanent injunction restraining the 1st and 2nd Defendants from interfering with the suit property, general damages and the costs of the suit. The 2nd Defendant argued that it was a bona fide purchaser for value without knowledge of or participation in any fraudulent schemes. The 3rd Defendant denied knowledge of the creation of the interests in the suit land and averred that he conducted his duties as the Commissioner of Lands in utmost good faith and that no personal liability accrued to him. The 1st and 4th Defendants did not enter appearance.

Issues for Determination:

I. Whether the suit property was available for alienation to the 1st Defendant and subsequent transfer to the 2nd Defendant.
II. Whether the 2nd Defendant was an innocent purchaser for value without notice
III. Whether the Plaintiff was entitled to the reliefs sought
IV. Who should bear the costs of the suit

Holding:

On whether the suit land was available for alienation, the court upheld the Plaintiff’s assertion that the suit land fell within an interchange of two roads identified as Southern Bypass and Mombasa Road. As the Plaintiff’s evidence was uncontroverted, the court found that the suit land was government land alienated for public utility as a road reserve. Under Section 2 of the Government Lands Act, only unalienated land would be available for allocation. Therefore, the suit land was not available for allocation. On whether the 2nd Defendant was an innocent purchaser for value, the court held in the negative, holding that, in line with the Court in Chemey Investment Limited v Attorney General & 2 others [2018] eKLR, that it was inconceivable that an innocent purchaser would buy land right in the middle of the road. Further, the 2nd Defendant had failed to dispense with his duty of due diligence as a purchaser of land. In light of the circumstances above, the court held that the Plaintiff had proved its case and was entitled to the orders sought. The court ordered for the cancellation of the grant in favour of the 1st Defendant on grounds of illegality, the cancellation of the transfer in favour of the 2nd Defendant, a permanent injunction restraining the 1st and 2nd Defendants from interfering with the suit property, general damages (payable by all Defendants) amounting to Kes. 300,000 and the costs of the suit.

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