BY SAM ALFAN .
Former Cabinet Secretary Raphael Tuju and Dari Limited have moved to court seeking to block East African Development Bank from auctioning his two hotels in Karen.
Tuju rushed to court after the regional lender advertised for sale his two properties in Karen over a disputed loan.
The former minister sought a temporary injunction restraining EADB and Garam Investment Auctioneers from auctioning Entim Sidai Wellness Sanctuary and Tamarid Karen and Dari business Park, all situated in Karen.
He also sought orders to stop recovery proceedings commenced by the lender before the High Court, seeking to recover USD 35, 057, 622.14 from him and company, pending the hearing and determination of this application.
“Unless the orders sought in this application are granted, there is imminent risk that my’ property will be disposed by way of public auction on 1 October 2024 without the due process of the law being adhered to,” Tuju and Dari told the court.
He further urged the court to hold the pending insolvency cases in abeyance, until the hearing and determination of his case.
He told the court he stand to suffer prejudice and irreparable harm should the court decline to grant the orders sought, yet the lender will suffers no prejudice should the application be allowed.
Tuju and his company said the Bank have never issued with a statutory notice as required by Section 90 of the Land Act, which ostensibly ought to indicate the amount payable to them so as to rectify the default.
According to the former CS, the Bank and auctioneer have further not conducted any forced valuation on the suit properties prior to advertising the same for sale by way of a public auction for purposes of establishing the reserved price, the amount the Bank would recover from the said sale and the amount payable to him after the Bank recovers the amounts allegedly owed to it.
He challenged the constitutionality and validity of the loan agreement dated 10th April, 2015 which was secured by charging the properties.
“The success of the herein above mentioned suit by me and company ineluctably renders any debt supposedly owed to the Bank by me null and void, and therefore unpayable to them. Without the intervention of the Court as sought by me and company in this Application, we face the impending danger of illegally being deprived of their properties contrary to Article 40 of the Constitution,” Tuju told the court.
He added notwithstanding the above, there is pending recovery proceedings in court.
“The said amount is identical to the amount the Bank seeks to recover from the sale of the suit properties by way of public auction,” he further told the court.
