BY SAM ALFAN.
Kotech & Son limited and Hemal Kotecha will now have to pay Sh.20 million as earlier ordered by the court.
Court of appeal judges dismissed the company application seeking to set aside an order issued compelling the company to deposit security of Sh20 million pending hearing of the case.
Appellate court Judges Hon.Hannah Okwengu, Hon.Paul Kiage and Hon.Fatuma Sichale dismissed application by Kotecha & Son limited stating that the company did not give any proper reason to justify the review of the order dated September 2, 2019.
“Accordingly, we dismiss his motion. As the respondent has not filed any reply to the motion or filed any written submissions, we do not find it appropriate to award any costs,” ruled the judges.
While dismissing the application, judges noted that the company failed to comply with the conditional order for stay of execution that was made on September 2, 2019 and it was seeking to have the same set aside, and or varied.
This is after the company filed an application seeking orders to set aside, vary or review orders that were made by the court on September 2, 2019 for a conditional order of stay of execution pending appeal on deposit of Sh. 20 million and instead provide for
alternative security for costs.
The company offered original titles for properties known as Kwale/Dalgube/984, Kwale/Dalgube/986, Kwale/Dalgube/987, Kwale/Dalgube/988 and Kwale/Dalgube/980 whose total value Sh. 55,755,000
Kotecha & Son sought an order of stay of execution pending the hearing of its appeal against the ruling of the High Court made of March 14, 2019.
The company argued that despite the efforts that they have made, they have not been able to raise the security ordered on September 2nd as its finances are tied up in loans advanced to 3rd parties and its financial situation has been further aggravated by the global Corvid 19 pandemic.
The bench said that company urged the Court to review the order because they are unable to raise the security that was ordered due to the company’s dire financial position.
In the order sought to be reviewed, the Court had given the Kotecha & Son 30 days from the date of the order to deposit the required security and in default of which, the order of stay was to automatically lapse.
“This means that the order of stay lapsed more than one year ago. We have not been told what the situation on the ground is,” said judges
They added the company also did not explain why it has taken them a year to make the application.
Amalo company Limited was named as the respondent in the suit filed by Kotecha & Son limited and Hemal Kotecha.
