The Nairobi Court of Appeal has issued an injunction restraining, among other parties, Kampala International University from dealing with a piece of land for which the Housing Finance Company (HFC) has an interest.
Justices Hannah Okwengu, John Mativo and Weldon Korir held that failure to issue an injunction order to preserve the suit property might lead to the land being used in an adverse manner that will result in rendering the appeal inconsequential.
“An injunction be and is hereby issued restraining the respondents, whether by themselves, their agents, from selling, disposing of, charging, or in any manner dealing with all that piece of land,” reads the court’s order.
“… known as Land Reference Number 7785/97 (Original Number 7785/10/92) and the purported subdivided plots thereto to wit; certificate of title IR No. 204894, Land Reference No. 7785/1489 (Original Number 7785/99/2) and certificate of title IR No. 204895, Land Reference No. 7785/1490 (Original Number 7785/99/3) pending the hearing and determination of the appeal.”
HFC brought the case against 12 parties including Kampala International University, Multi-Equipped Limited, Chief Land Registrar and Nairobi City County.
In 2011, the financial institution extended a Sh54 million loan to the university, which created a charge on the suit property in favour of the lender. The university defaulted on the repayment of the loan prompting HFC to exercise its statutory power of sale.
However, following an official search, HFC was informed that the university was not the listed proprietor of the property which was now claimed by Multi-Equipped.
Aggrieved, HFC filed a case against the respondents at the Environment and Land Court (ELC).
It also sought an injunction to prevent the respondents from dealing with the land during the proceeding of the case at the ELC.