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Stanbic gets nod auction property over Sh56m debt

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Stanbic gets nod auction property over Sh56m debt


Stanbic

A Stanbic Bank branch on Kimathi Street, Nairobi. FILE PHOTO | NMG

Summary

  • Two freight and shipping companies have lost bid to stop Stanbic Bank from auctioning their properties over Sh56 million loan default following disruption of business by the Covid-19 pandemic.
  • Seahawk General Logistics Ltd and Matrix Logistics Ltd wanted the court to issue orders against the lender’s decision to sell their 29 land parcels in Karen, Kajiado/Kaputei North and Ngong to recover the loan.

Two freight and shipping companies have lost bid to stop Stanbic Bank from auctioning their properties over Sh56 million loan default following disruption of business by the Covid-19 pandemic.

Seahawk General Logistics Ltd and Matrix Logistics Ltd wanted the court to issue orders against the lender’s decision to sell their 29 land parcels in Karen, Kajiado/Kaputei North and Ngong to recover the loan.

But the court dismissed the request saying granting the order would amount to interfering with a party’s statutory right as well as contractual relationship.

Justice Alfred Mabeya found there was no indication that the companies were capable of servicing the loan even if they were given time.

“There was evidence that on three occasions the facilities had been restructured yet the applicants were unable to meet the terms of the restructure,” said justice Mabeya adding that the companies did not prove they had a case with probability of success.

He also ruled that there was nothing to show that the companies would suffer any loss that is irreparable if no injunction is granted.

The court found that the notices for sale of the property were properly issued and cannot be faulted.

On the companies’ complaint that the bank had under-valued the suit properties, the judge said the valuations were of less value than the original valuation when the properties were being charged.

Justice Mabeta said under Section 97(2) of the Land Act, all that is required is a valuation of less than 12 months from the date of exercise of the statutory power of sale.

“The allegations of under valuation could have held sway if the applicants would have provided an alternative valuation. Since the court has the bank’s set of valuations only, the allegations of under-valuation remained unproven,” he stated.

The bank, in opposition to the firms’ request said it had severally restructured the loan but the clients had failed to comply with the restructure terms.



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88E70B70D1Aa46A497A524Eca9E5C16A?S=96&D=Mm&R=G Stanbic Gets Nod Auction Property Over Sh56M Debt
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