[2023] KEELC 15784 (KLR)

[2023] KEELC 15784 (KLR)

The court found that while the Plaintiff was entitled to compensation for compulsory acquisition of its property, the existence of a pending ownership dispute between the Plaintiff's director and the Interested Party, as evidenced by ongoing matrimonial proceedings in Nairobi HC OS No 37 of 2013, justified the...

Source-derived case information.

Citation
[2023] KEELC 15784 (KLR)
Parties
Plaintiff: Drum Major Properties Limited; Defendant: Kenya National Highways Authority; Defendant: National Land Commission; Interested Party: Tecla Mwake Nyange
Court
Environment and Land Court
Court Station
Environment and Land Court at Machakos
Jurisdiction
Kenya
Case Number
Environment & Land Case E014 of 2021
Procedural Posture
Originating Summons / Judgment
Outcome
suit dismissed
Judges
A Nyukuri
Legal Topics
Compulsory Acquisition, Compensation Disputes, Matrimonial Property Claims, Injunctions, Ownership Disputes
Source Language
en
Land and Property Civil Procedure Compulsory Acquisition Compensation Disputes Matrimonial Property Claims Injunctions Ownership Disputes

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Parties

Drum Major Properties Limited

Plaintiff

Kenya National Highways Authority

Defendant

National Land Commission

Defendant

Tecla Mwake Nyange

Interested Party

Procedural Posture

Originating Summons / Judgment

  1. 1 Whether the Defendants should be compelled to pay the Plaintiff the sum of Kshs 49,116,836 plus interest at 12% per annum from the date of the award until payment in full.
  2. 2 Whether the Defendants are justified in withholding payment of the assessed compensation sum of Kshs 49,116,836 to the Plaintiff.

Ratio Decidendi

The court found that while the Plaintiff was entitled to compensation for compulsory acquisition of its property, the existence of a pending ownership dispute between the Plaintiff's director and the Interested Party, as evidenced by ongoing matrimonial proceedings in Nairobi HC OS No 37 of 2013, justified the Defendants' withholding of payment under Section 115(c) of the Land Act. The court held that the National Land Commission is statutorily mandated to withhold compensation where there is a dispute as to entitlement or shares, and that the Plaintiff's failure to disclose the existence of the dispute and the injunction in the family court amounted to material non-disclosure and bad...

Court Disposition

suit dismissed

Orders

  • The Plaintiff's suit is dismissed with costs to the Defendants and the Interested Party.
  • The Defendants are justified in withholding compensation funds until determination of Nairobi HC OS No 37 of 2013.