National Bank Managing Director Munir Sheikh Ahmed. FILE PHOTO | NATION MEDIA GROUP
The High Court has found two bank executives and an auctioneer
guilty of disobeying an order that barred them from putting up for sale a
Nairobi hotel valued at Sh550 million.
National Bank
Managing Director Mr Munir Sheikh Ahmed and the bank's Company Secretary
Mr Habil Waswani face a six month jail term alongside auctioneer Mr
Joseph Gikonyo for having put up an advertisement for sale of the
Nairobi Upper Hill Hotel.
They were found guilty of placing the advertisement three days after the court issued the order.
Justice
Farah Amin said she had found that there was a clear violation of a
court order which had been promptly served and caused the plaintiff, Mr
Geoffrey Wahome Muotia's business "massive harm."
"In
the circumstances, I find Mr Munir Sheikh as well as the company
secretary of the defendant’s bank to be in contempt," the Judge said.
The
judge ruled that Mr Gikonyo was in contempt of the order issued on
January 23. The property was advertised for sale on January 26.
RECEIVER
She said the defendants knew of the order and "needed to stop the advertisement."
"Those
are the people who bear the greatest responsibility for the
disobedience and they are the people who should be punished," the Judge
said.
The underlying dispute relates to Mr Muotia's
property valued at Sh550, million that had been charged against a loan
but which the bank wanted sold to a receiver at Sh330 million.
"It is not clear how the bank decided that plaintiff would not pay," the Judge said.
She
dismissed the bank's defence that it had not been made aware of the
order in good time to stop the advertisement and instead directed that
the CEO and the auctioneer mitigate in 10 days before sentencing.
At the same time Justice Amin extended the order stopping further interference of the property.
The
investment is located along Mawensi Road in the city’s Upper Hill area.
It is identified as LR No.209/12544 Upper Hill, Nairobi
The National Bank has filed an appeal against the judgment
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