The Court of Appeal has issued a mandatory order compelling Lodwan Exporters (EPZ) Ltd to surrender three parcels of lease land to the Export Processing Zones Authority (EPZA), handing a relief to the State agency.
Appellate judges Gatembu Kairu, Agnes Murgor, and Kibaya Laibuta directed Lodwan Exporters (EPZ) Ltd to present all the requisite documents to enable the surrender of the lease to EPZA within 30 days.
The Court of Appeal also ruled that if Lodwan Exporters to comply with the order, the Deputy Registrar of the court would execute the transfer of the leased land and documents back to the EPZA for registration.
It declared that the leases entered into between EPZA and Lodwan Exporters Ltd concerning the land located within Mombasa County stood nullified as of the date of the termination notice dated January 27, 2017.
EPZA had challenged a decision of the Environment and Land Court (ELC) dismissing its counterclaim against Lodwan Exporters (EPZ) Ltd where it sought to have the company ordered to vacate the parcels of land.
The Court of Appeal ruled that it did not agree with the ELC’s conclusion that an admitted receipt by EPZA in 2017 of what turned out to be rent arrears for several years between 2013 and 2016 defeated its right to terminate the leases by notice.
It ruled that contrary to the ELC judge’s conclusion, the appellant terminated the leases on valid grounds.
On whether the ELC rewrote the contract between the parties, the Court of Appeal noted that the express terms of the leases made provision for termination with sufficient notice including conditions to the grant of the leases of which the firm breached.
“Neither did the appellant’s demand for the accrued sums then in arrears defeat its right to terminate the leases.
"The memorandum of understanding entered into by the parties did not stand in the way of strict enforcement by EPZA of the terms of the leases, including the right to terminate by proper notice,” said the appellate court.
