Firm loses bid to stop payment of SGR compensation

A company has lost an application seeking to stop payment of Sh667.9 million as compensation for acquisition of land for construction of the Standard Gauge Railway (SGR) after a court upheld an objection by the National Land Commission (NLC).

Justice Charles Yano of the Environment and Land Court upheld the objection by the NLC and dismissed the suit filed by Kenya Wool Investments, noting that it was an abuse of the judicial system.

“By instituting multiplicity of actions in different courts on the same subject matter against same opponents on the same issues is no doubt a gross abuse of the court’s process,” said Justice Yano in his ruling.

“I am aware that striking out is a draconian measure and that the power to strike out should be exercised sparingly.”

Justice Yano said the issue of abuse of court process is a serious one and once raised by any party, it behoves the court to make a determination at the earliest opportune time.

Through lawyer Solomon Mbuthia, the NLC argued that the suit filed by Kenya Wool Investment Ltd was an attempt to re-litigate matters that have already been dismissed.

According to the NLC, the firm was seeking to stop compensation payment to Dopp Investment Ltd, the interested party in the suit, over a 13.8 hectare parcel of land located in Mazeras.

Mr Mbuthia further submitted that Kenya Wool Investment was claiming a registered property while clinging to a sale agreement that is not in its name.

Kenya Wool Investment, through lawyer Cherrie Oyier, argued that the objection to the suit raised by the NLC was not properly before court since the commission is not properly constituted.

Ms Oyier argued that two of the cases by the applicant were dismissed after parties raised objections on the issue of jurisdictions of the courts.

“Dismissal for lack of jurisdiction does not mean a party cannot go to the right forum,” said Ms Oyier, adding that the NLC’s objection should be dismissed.

The Attorney General had supported the application by Kenya Wool Investment, saying substantive issues have not been argued and that dismissing the suit would be prejudicial.

The company also wanted an order directing the chief lands registrar to revoke all title documents held by the Dopp Investments in respect to the parcel of land.