BY SAM ALFAN.
The High Court has stopped a micro-lender from disposing of two high-end vehicles belonging to a businessman.
The court barred Baron Capital limited, a company accused of unlawful means to seizure of property, from transferring or interfering with the vehicles belonging to Elijah Njoroge.
Justice Wambua Mongare restrained Baron Capital ltd and and auctioneer Spectrum Auctioneers from selling the Toyota Land cruiser and Lexus motor over Sh10 million dispute.
The businessman moved to court accusing the lender of unlawful seizure of the two vehicles.
Njoroge urged the court to declare any purported sale of the said motor vehicle by Baron Capital ltd and the auctioneers whether by public auction, private treaty or howsoever, to be null and void.
He also urged the court to issue a directive to Baron Capital ltd or anyone acting on its behalf to release and surrender the said motor vehicle to him.
The businessman says he used the vehicles as security for a soft loan of Sh10 million on or about 9th December last year.
Njoroge said the loan was repayable over agreed period of six to twelve months, respectively and in that regard executed a conditional security in accordance with the movable securities Rights Act.
He added that the contract was not an outright transfer to the Baron Capital ltd but was intended to be collateral for the performance of his obligations under the agreement.
He told the court that th lender never released the contracted loan amount to him, ether immediately or subsequently and unbeknown to him, Baron Capital ltd planned to use the said agreement to deprive or dispossess him of his property through fraudulent misrepresentation and misuse of the said agreement.
“That in furtherance of its mala fides, Baron Capital ltd refused to release the executed copy of the contract to the Plaintiff, in a bid to frustrate him in his bid to seek justice from the law and as a first step towards defrauding the Plaintiff, at the commencement of the contract, the 1st Defendant deliberately refused, failed and neglected to credit the Plaintiff’s account with the contracted monies, and upon enquiry, the 1 Defendant introduced a new narrative about facilitation fees, amounting to huge illegal and unjustified deduction on the contracted amount,” Njoroge told the court.
Njoroge did not acquiesce to or condone this arrogant and fraudulent breach of contract and on 23rd March and 24th March, 2023, without any prior notice, warning or communication, the 2nd Defendant, acting on the instructions of Baron Capital, violently and forcefully took possession of the said motor vehicles, and refused to leave either a Proclamation or Notification of Seizure as by law required, both under the Auctioneers’ Act and the Movable Securities Rights Act.
“The actions of Baron Capital ltd were unwarranted and un-called for as I had already repaid to the Baron Capital ltd Sh1,885,000.00 of the Sh10 million borrowed in a span of under 2 months, representing 20% of the loan,” Njoroge told the court.
