The High Court has extended orders temporarily restraining the National Bank of Kenya
from interfering with possession or advertising for sale five parcels
of land used as collateral to secure a Sh3.6 billion ($36.1 million)
loan by a company owned by the late Mombasa tycoon Tahir Sheikh Said.
Justice
Patrick Otieno extended the orders granted to Juja Coffee Exporters
Ltd, which has sued the bank seeking among others an order that
notification of sale dated February 16 by the bank to the company be set
aside.
Mr Said, a wealthy businessman and political
broker in the Coast region, died last year leaving behind heavily
indebted businesses.
The tycoon was more commonly known as TSS.
Through lawyer Paul Munyao, the bank wanted the court to extend the orders on condition that the company deposit Sh100 million.
Mr
Munyao argued that Juja Coffee Exporters Ltd are not disputing the debt
hence the need for the interim orders to be extended on condition.
Juja Coffee Exporters Ltd objected to the condition being placed on the extension of the orders saying it will be prejudiced.
Juja Coffee Exporters Ltd objected to the condition being placed on the extension of the orders saying it will be prejudiced.
Justice
Otieno declined to order a conditional extension of the orders saying
he would not interfere with the orders earlier issued before hearing the
parties.
The company wants a temporary injunction issued pending
hearing and determination of the application restraining the bank from
interfering with its possession, marketing, advertising for sale,
leasing, subdividing, receiving or taking possession of the charged
parcels of land to secure US dollars 36,095,495.41 (Sh4 billion) as
outstanding amounts.
The application is based on the
grounds that the company is the owner of the five properties which were
charged to the bank as collateral to secure a principal loan.
“A
director with a major stake in the plaintiff (company) has since passed
on and the surviving directors are willing to come to a structured
settlement on repayment plan,” the application read in part.
According
to the company, the bank auctioneers had on February 16 this year
issued a Notice of Sale to sell the properties to secure the money plus
Sh12 million with interest and other charges.
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