[2018] KEHC 7069 (KLR)
The court declined to issue a further injunction, reasoning that the disputes over Tawai Limited's land and directorship had already been the subject of litigation up to the Court of Appeal, which had issued orders stopping dealings in the land. Issuing another injunction would not resolve the underlying issues and...
Source-derived case information.
- Citation
- [2018] KEHC 7069 (KLR)
- Parties
- Plaintiff: Nathan Wanjala Muhindi; Plaintiff: Henry Simiyu Juma; Plaintiff: Moses Wafula; Plaintiff: David Wekesa; Plaintiff: Patrick Wangila; Plaintiff: Dorris Namwenya Lusamamba; Defendant: Tawai Limited; Defendant: The Registrar of Companies; Respondent: Fred Juma Mumia; Respondent: Patrick Wafula Makokha; Respondent: Alfred Sindani Wanoynyi
- Court
- High Court
- Court Station
- High Court at Kitale
- Jurisdiction
- Kenya
- Case Number
- Civil Suit 16 of 2017
- Procedural Posture
- Civil Suit / Ruling on Interlocutory Application for Injunction
- Outcome
- Application for injunction declined; parties directed to hold a meeting as guided by the court.
- Judges
- HK Chemitei
- Legal Topics
- Injunctions, Company Directorship Disputes, Fraudulent Land Transactions
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Nathan Wanjala Muhindi
Plaintiff
Henry Simiyu Juma
Plaintiff
Moses Wafula
Plaintiff
David Wekesa
Plaintiff
Patrick Wangila
Plaintiff
Dorris Namwenya Lusamamba
Plaintiff
Tawai Limited
Defendant
The Registrar of Companies
Defendant
Fred Juma Mumia
Respondent
Patrick Wafula Makokha
Respondent
Alfred Sindani Wanoynyi
Respondent
Procedural Posture
Civil Suit / Ruling on Interlocutory Application for Injunction
Legal Issues
- 1 Whether the court should grant an injunction restraining dealings with the subject land pending determination of the suit.
- 2 Whether the disputes regarding Tawai Limited's directorship and land dealings are best resolved through further court orders or alternative mechanisms.
- 3 Whether issuing another injunction would serve the interests of the shareholders and parties involved.
Ratio Decidendi
The court declined to issue a further injunction, reasoning that the disputes over Tawai Limited's land and directorship had already been the subject of litigation up to the Court of Appeal, which had issued orders stopping dealings in the land. Issuing another injunction would not resolve the underlying issues and could exacerbate the situation, particularly for shareholders uninvolved in the directorship disputes. The court determined that a dialogue involving the plaintiffs, current directors as recognized by the Registrar of Companies, and the Registrar of Companies was a more appropriate course of action. The court emphasized that further injunctive relief would not be in the best...
Court Disposition
Application for injunction declined; parties directed to hold a meeting as guided by the court.
Orders
- No injunction is granted against the defendants or interested parties.
- An appropriate meeting involving the plaintiffs, current directors as recognized by the Registrar of Companies, and the Registrar of Companies shall be held as directed by the court.
Full Case Text
Judgment text and source record
29 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT KITALE
CIVIL SUIT NO. 16 OF 2017
NATHAN WANJALA MUHINDI.............................................1ST PLAINITFF
HENRY SIMIYU JUMA...........................................................2ND PLAINTIFF
MOSES WAFULA.....................................................................3RD PLAINTIFF
DAVID WEKESA......................................................................4TH PLAINTIFF
PATRICK WANGILA...............................................................5TH PLAINTIFF
DORRIS NAMWENYA LUSAMAMBA................................6TH PLAINTIFF
VERSUS
TAWAI LIMITED.................................................................1ST DEFENDANT
THE REGISTRAR OF COMPANIES................................2ND DEFENDANT
AND
FRED JUMA MUMIA...........................................1ST INTERESTED PARTY
PATRICK WAFULA MAKOKHA......................2ND INTERESTED PARTY
ALFRED SINDANI WANOYNYI..........................3RD INTERSTED PARTY
DIRECTIONS
1. This matter was due for ruling on the Plaintiffs/Applicants application dated 20/11/2017. I have perused the same and it raised weighty issues. It is not in dispute that the issues surrounding Tawai Limited have been litigated all the way to the Court of Appeal. Infact an appeal emanating from Eldoret Environment and Land Court Case No. 87 of 2013 is admittedly pending before the said court which has granted orders stopping dealings in 640 acres of the land.
2. It appears there are other cases pending before the Environment and Land Court here at Kitale.
3. Looking at the sum total of the entire spectra surrounding the said land buying company, it appears that there have been fraudulent activities perpetrated in the past either by directors of their cohorts. The paper trail of correspondences between them, Registrar of Companies as well as other government agencies speak volumes. In essence “small fish” have suffered.
4. Issuing injunction by this court against the defendants or interested parties would be a short term solution and exacerbate the problem. This court is of the view that there must be a dialogue involving the plaintiffs, the current directors of the company as recognised by the Registrar of Companies as well as the Registrar of Companies.
5. Once the way forward has been charted then the only road block shall be the pending suits in the court of Appeal and other courts which have issued injunction or stay reliefs.
6. This court has deliberately decided to take this course as issuing another injunction would not be in the interest of the shareholders who have no interest over the directorship wars and the related settlement of scores.
7. Let therefore an appropriate meeting be held as directed above which shall be guided by this court.
Delivered, signed and dated at Kitale this 9th day of April 2018.
____________________
H.K. CHEMITEI
JUDGE
9/4/18