BY SAM ALFAN.
African Bank Corporation Ltd has been blocked from selling a property in Nairobi’s South B area, belonging to Pegasus Kenya ltd.
Justice Wilfrida Okwany issued an order stopping the Bank and Impact Investment from selling the property, pending the determination of the case.
“A temporary order against African Banking Corporation and Impact Investment ltd, jointly and severally restraining them from selling, transferring, disposing or dealing with Applicant’s property known as L.R. 209/10669/5 South B pending the hearing and determination of this suit,” ruled the court.
The company says that it is an innocent purchaser for the value of all that property described as LR. 209/10669/5 together with development thereon and the Bank has never issued a statutory 90 days to them.
The court heard that the Bank has equally never sent a 45 redemption notice to the company and the Bank has colluded to dispose of the property without involving the company.
According to the court documents, the company entered into a private treaty with Impact Investment with the consent from the ABC Bank.
The company said it paid Sh23 million towards servicing of the said loan and he stands to suffer great loss and damage if the lender is not restrained from disposing of the property.
The company stated that he is a bona fide purchaser of the suit property for that the Bank did not send him the statutory notices despite the fact that it gave consent to the Impact Investment ltd to sell the said property to the applicant through a private treaty.
The company further contended that it had already paid the sum of Sh23 million towards servicing of the Impact’s loan and it stands to suffer loss and damage if the Bank is not restrained from disposing of the suit property.
The Bank on the other hand conceded that it gave consent to the Impact Investment ltd to sell the suit property to the applicant but argued that it was not a party to the said transaction and does not therefore owe any contractual obligation to the plaintiff.
The Bank opposed the application through the replying affidavit of the Bank’s Legal Manager Falth Nteere who stated that the bank did not enter into any agreement with the plaintiff with respect to the sale of the LR. No 209/1066915 South B and does not therefore owe any contractual obligation to the plaintiff.
She further states that the bank is the only financier with a registered interest over the suit property as a chargee and that it issued the requisite statutory notices to the Impact Investment ltd following its default in servicing the loan.
