Hon Justice Angela Otaluka of the High Court of the Federal Capital Territory has nullified a lease agreement granted to Basic Properties Limited by the Federal Capital Development Authority (FCDA) over land in Lokogoma District, Abuja.
The dispute centered on Plot 9 in Cadastral Zone C09, Lokogoma District, which forms part of a larger parcel known as Plot No. 6, Phase III, FCDA allocation. Basic Properties Limited had obtained a lease for the land from the FCDA while an earlier lease granted to the claimants, Mr. Akindeji Akinade and another party, was still valid and in force.
The claimants approached the court seeking to invalidate the lease granted to Basic Properties Limited, as well as subsequent transactions involving Saraha Homes Limited, which allegedly sold portions of the land to members of the Incorporated Trustees of Lokogoma Basic Estate Owners/Residents Association.
Other parties involved in the suit included Saraha Homes Limited (1st defendant), the Minister of the Federal Capital Territory (3rd defendant), the FCDA (4th defendant), and the residents’ association (5th defendant).
After reviewing arguments from all parties, Justice Otaluka ruled that the counterclaims by the estate residents failed because they did not conduct proper due diligence before purchasing the land from Saraha Homes Limited. The court held that they had no valid title and were therefore trespassers.
The judge declared that the lease granted to Basic Properties Limited was null and void because it was created while the claimants’ lease was still active. She further ruled that Saraha Homes Limited unlawfully encroached on the land and that all subsequent transactions based on that encroachment were invalid.
The court also found that the FCDA and the Minister had no justification for issuing another lease over the same land while the earlier agreement was still subsisting, describing the action as a breach of contract and contrary to the Land Use Act and the Constitution.
Justice Otaluka awarded the claimants ₦2.5 million in damages for trespass and ₦5 million in costs and legal fees.
In this article