[2018] KEELC 1126 (KLR)
The court determined that the core dispute concerns the directorship and leadership of the plaintiff company, which is not within the mandate of the Environment and Land Court. The court held that it would be improper to address issues of land ownership or share transfer without first resolving the question of who...
Source-derived case information.
- Citation
- [2018] KEELC 1126 (KLR)
- Parties
- Plaintiff: Tawai Limited; Defendant: Nathan Wanjala Muhindi; Defendant: Fred Juma Mumia; Defendant: Patrick Wafula Makokha; Defendant: Alfred Sindani Wanyonyi; Defendant: Martin Nyongesa; Defendant: Nathan Wanyama
- Court
- Environment and Land Court
- Court Station
- Environment and Land Court at Kitale
- Jurisdiction
- Kenya
- Case Number
- Land Case 10 of 2018
- Procedural Posture
- Land Case / Ruling on Jurisdiction and Transfer
- Outcome
- matter transferred to the High Court for determination of company directorship dispute
- Judges
- FM Njoroge
- Legal Topics
- Company Directorship Disputes, Injunctions, Contempt of Court, Land Ownership, Share Transfer
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Tawai Limited
Plaintiff
Nathan Wanjala Muhindi
Defendant
Fred Juma Mumia
Defendant
Patrick Wafula Makokha
Defendant
Alfred Sindani Wanyonyi
Defendant
Martin Nyongesa
Defendant
Nathan Wanyama
Defendant
Procedural Posture
Land Case / Ruling on Jurisdiction and Transfer
Legal Issues
- 1 Whether the Environment and Land Court has jurisdiction to determine disputes regarding company directorship.
- 2 Whether the defendants should be injuncted from selling or purporting to sell shares of the plaintiff company.
- 3 Whether the defendants are in contempt of court orders issued on 1st February 2018.
Ratio Decidendi
The court determined that the core dispute concerns the directorship and leadership of the plaintiff company, which is not within the mandate of the Environment and Land Court. The court held that it would be improper to address issues of land ownership or share transfer without first resolving the question of who the legitimate directors of the company are. Since such company law matters fall under the jurisdiction of the High Court, the Environment and Land Court lacks jurisdiction to proceed. Consequently, the matter must be transferred to the High Court for determination of the leadership dispute before any substantive land or shareholding issues can be addressed.
Court Disposition
matter transferred to the High Court for determination of company directorship dispute
Orders
- This matter is hereby transferred to the High Court for a determination of the leadership wrangles between the disputing parties.
Full Case Text
Judgment text and source record
45 paragraphs
REPUBLIC OF KENYA
IN THE ENVIRONMENT AND LAND COURT AT KITALE
LAND CASE NO. 10 OF 2018
TAWAI LIMITED............................................................................PLAINTIFF/APPLICANT
VERSUS
NATHAN WANJALA MUHINDI..................................1ST DEFENDANT/RESPONDENT
FRED JUMA MUMIA..................................................2ND DEFENDANT/ RESPONDENT
PATRICK WAFULA MAKOKHA..............................3RD DEFENDANT/ RESPONDENT
ALFRED SINDANI WANYONYI.................................4TH DEFENDANT/RESPONDENT
MARTIN NYONGESA..................................................5TH DEFENDANT/RESPONDENT
NATHAN WANYAMA...................................................6TH DEFENDANT/RESPONDENT
R U L I N G
1. This is not a ruling on the application dated 30/1/2018 and filed in court on 31/1/2018 though submissions have been filed in respect thereof. That application has been brought by the plaintiff. It is worthy to note that it seeks the following orders:-
(1) ……..spent
(2) ……..spent
(3) ……..spent
(4) A temporary injunction be issued against the 1st, 2nd, 3rd, 4th, 5th and 6th defendants/respondents jointly and severally by themselves, their authorized agents, workers, servants, representatives, family members whosever from selling and or purporting to sell shares of the plaintiff/applicant and or purporting to act as the directors of the plaintiff pending the hearing and determination of this suit.(emphasis mine)
(5) A temporary injunction be issued against the 1st, 2nd, 3rd, 4th, 5th and 6th defendants/respondents jointly and severally by themselves, their authorized agents, workers, servants, representatives, family members whosever from selling and or purporting to survey, sell, lease, charge, dispossess, alienate, hand over to purported members of the plaintiff/applicant to till and or act in any other manner to prevent the plaintiff and or its members peaceful possession, access and or use of parts of and or the entire Land Parcel No. Tawai Farm, LR. No. 5707/R pending the hearing and determination of this suit.
(6) The Officer in-Charge of Station (OCS) Kitale Police Station be directed to ensure the orders herein are obeyed and that peace and order is restored on LR. No. 5705/R Tawai Farm.
(7) Costs of this application be provided for.
2. The applicant has brought the application under Order 40 Rule 1,2 & & 2A and Order 51 Rule 1of theCivil Procedure Rules. The grounds upon which the application is made are contained at the foot of the application. The application is supported by the affidavit of George Mubichakani MalangatheChairmanand one ofDirectors of the Plaintiff dated 31/1/2018.
3. There is another application by the applicant dated 27/2/2018 and filed in court on the same date. It seeks the following orders:-
(a) This application be certified urgent and be heard on priority basis.
(b) The 1st, 2nd, 3rd, 4th, 5th and 6th defendants/respondents property worthy Kshs.1,000,000/= each be attached as punishment for contempt of court for their breach of court orders herein dated 1st February, 2018.
(c) The 1st, 2nd, 3rd, 4th, 5th and 6th defendants/respondents be committed to civil jail for six (6) months for contempt of court for breach of court orders herein dated 1st February, 2018.
(d) Costs of this application be provided for.
4. The application has been brought under Order 40 Rule 3(1) (2) & (3) and Order 51 Rule 1 of the Civil Procedure Rules and Section 3, 3A and 63 (e)of theCivil Procedure Act Cap 21 Laws of Kenya.
5. The grounds upon which the application is made are contained at the foot of the application. They are that:- the court should be held in great honour and its orders obeyed diligently; that this honourable court granted orders of injunction on 1/2/2018 which were issued on 5/2/2018; that THE same orders were served upon the 1st, 2nd, 3rd, 4th, 5th and 6th defendants/respondents of Tawai Farm on 6/2/2018; that the same orders were served upon the 1st defendant/respondent on 7/2/2018 at Kitale Law Court; that the defendant have continued to purport to sell the shares of the plaintiffs/applicants to other people who are continually entering into the suit land and tilling and erecting structures thereon and that THE acts of the defendant have brought scorn, ridicule and dishonor to the honourable court and granting the orders sought is the only remedy to restore the court’s image.
6. These two applications have drawn the court’s attention to the contents of the plaint. The primary prayer listed as the first in that plaint is that the defendants be injuncted jointly and severally to restrain them by themselves or their agents from selling or purporting to sell shares of membership to the plaintiff.
7. It appears to me that the issue of ownership or transfer of the land is preceded by the issue of who are the correct directors of the plaintiff company and in my view this is not within the mandate of this court. This court would not skip the issue of directorship and determine the matters of ownership of the land. It would be improper.
8. I therefore order that this matter is hereby transferred to the High Court for a determination of the leadership wrangles between the disputing parties.
Dated, signed and delivered at Kitale on this 25th day of October, 2018.
MWANGI NJOROGE
JUDGE
25/10/2018
Coram:
Before Hon. Mwangi Njoroge, Judge
Court Assistant - Picoty
Mr. Kassim for plaintiff/applicant
Mr. Rioba for defendant absent
COURT
Ruling read in open court.
MWANGI NJOROGE
JUDGE
25/10/2018