‘LEASEHOLDER CAN SELL AT WILL’ – SUPREME COURT

by CYRIL GAREA Leaseholder in Papua New Guinea can sell its lease at will “as it saw fit”, according to the Supreme Court.
And this should be the case in any commercial or business lease transactions according to the Supreme Court that presided over a dispute relating to a large block of prime commercial property in the heart of Mt. Hagen - Section 13 Allotments 1 and 2.   
The dispute which spanned over 20 years or so was between prominent Mt. Hagen Businessman, Mr. Nixon Koi through his company Mamun Investment and the National Council of Young Men’s Christian Association of Papua New Guinea or YMCA Mt. Hagen branch.
It turned ugly this month (June 10, 2015) when Mr. Koi was arrested in Port Moresby and charged by the National Fraud and Anti-Corruption Squad with five counts of fraudulently attempting to claim ownership of this land through his company.
Mirupasi Lawyers, acting for Mr. Koi and Mamun Investment, said they acted for their client (Nixon Koi) in purchasing the said piece of land from YMCA and “this sale was facilitated in a normal contract for sale and purchase of land. Mr. Koi never committed any acts of fraud as alleged. We will defend these allegations and sue those responsible for damages”.  
However, since 1995, YMCA had challenged this acquisition in the National Court on the basis that the land was granted as a Special Purpose Lease (SPL) and could not be sold.  
The National Court agreed and ruled in favour of YMCA in stating that “the land must remain as a lease in its original lease (SPL) and could not be turned into a Business Lease (BL)”.
Mirupasi Lawyers said its client appealed that decision in the Supreme Court (SC) which allowed the appeal through and ruled that “YMCA had acted with its charter in selling the land as it saw fit. If the purchaser wanted to change the status of the title that was its prerogative”, effectively quashing the decision of the lower court.
On the basis of this SC judgement, Mr. Koi took up a second proceeding in the National Court this time seeking eviction orders of the settlers on this land (OS No. 546 of 2008).  
However, the National Court turned him down the second time after the trial judge favoured the defendants’ (settlers’) allegations of fraud against Mr. Koi and his company, Mamun Investment.
Under SCA No. 112 of 2001, Mr. Koi again appealed before the Supreme Court and in February, 2015 the Supreme Court held his appeal in that:
  • Mr. Nixon Koi and Mamun Investment Ltd own land Section 13 Allotments 1 & 2, Mt. Hagen, Western Highlands province;
  • The SC has decided on all issues relating to this land after 20 years of court battles;
  • There does not lie further court process therefore there cannot be and there are no further issues on it.
Mirupasi Lawyers said “the Supreme Court order will be enforced and any party denying it can only be in contempt.
“Nixon Koi was the purchaser of this land in a normal commercial transaction. He never committed any acts of fraud as alleged.
“Onda Koim and others (as settlers on this land) must respect the Supreme Court decision. Nixon Koim and Mamun Investment Ltd will defend these allegations and sue those responsible for damages,” Koi’s Lawyers concluded. 

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