Mr Yagnesh Devani. Photo/FILE
By GALGALLO FAYO
In Summary
- Justice Eric Ogola, however, restrained KCB from initiating any fresh sale of the businessman’s property until a ruling is made on an application by Mr Devani’s oil-dealing company, Triton, which wants the sales stopped.
- KCB last week told the High Court that it has completed the sale of all of Mr Devani’s assets used to secure a Sh2.1 billion loan.
- The lender says 14 properties pledged by Mr Devani as security for the loan had already been sold by the time order freezing fresh sales was issued.
The High Court has allowed KCB
to complete the ongoing sale of fugitive businessman Yagnesh Devani’s
assets, stopping a bid by the run-away tycoon to freeze pending
transfers at the lands registry.
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Justice Eric Ogola, however, restrained KCB from initiating
any fresh sale of the businessman’s property until a ruling is made on
an application by Mr Devani’s oil-dealing company, Triton, which wants
the sales stopped.
KCB last week told the High Court that it has completed the sale of all of Mr Devani’s assets used to secure a Sh2.1 billion loan.
The court, however, on July 17 gave an order
restraining sale of the assets; prompting KCB to return to court seeking
a clarification on how the transfer and registration of already sold
properties could be handled.
“The court order of July 17 was clear. It was not
intended to affect or bar the third parties (who have purchased the
assets). I grant prayer 2 (of KCB application) pending ruling of
September 26, 2014,” ordered Justice Ogola.
KCB says 14 properties pledged by Mr Devani as
security for the loan had already been sold by the time order freezing
fresh sales was issued.
The bank argued that the buyers of the properties
are not party to the suit and the court cannot issue an order that
restrains them from registering the transfer of titles at the Lands
registry.
But Triton asked the judge to decline the
application, arguing that it has already registered the July 17 order
against the titles stopping anyone from registering a transfer of
ownership.
Triton was placed under receivership in 2008 after
it was established that the company had withdrawn its stock of fuel from
the Kenya Pipeline Company’s storage tanks without informing its
financiers – who included KCB and PTA banks – after which Mr Devani fled
the country leaving behind a Sh7.6 billion scam.
Triton had sought an injunction against the sale of
assets by KCB on the grounds that the loan was borrowed at a personal
level by Mr Devani.
Triton had moved to court in December seeking to block KCB and PTA banks from auctioning its assets.
Triton had moved to court in December seeking to block KCB and PTA banks from auctioning its assets.
Last week, Triton argued that it had evidence that
the lender was in a rush to complete the sale and asked for an order
restraining the auction, arguing that its case would be rendered
irrelevant.
Triton has distanced itself from an agreement in
2009 in which its assets were pledged as security for the loan taken by
Mr Devani, a former director of the oil trading company.
The fugitive businessman was arrested in London in
2011 and he has been fighting to stop his extradition to Kenya to face
charges related to the scam.
Triton had claimed that KCB and PTA banks are
seeking to sell 15 petrol stations and six undeveloped plots owned by
the oil firm.
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