A local bank was ordered by the High Court to award a property owner Ksh7.1 million as general damages after the bank allegedly failed to issue a notice of the sale of the property.
According to Paul Kuria Ngugi, the bank conducted the sale illegally as it did not inform him. Court documents showed that the bank auctioned the property to repay a loan that Ngugi had taken and defaulted on.
Ngugi stated in court that he had used the prime land in Muguga, Kiambu County as collateral when securing a Ksh3.4 million loan.Kenyan Currency notes.File
However, he admitted that he later fell into difficult financial times that saw him default in repaying the loan. Ngugi said he didn't get copies of the sale documents from the bank. Further, the bank refused to indicate whether the land fetched the market price.
Ngugi termed the sale as illegal as the property was not valued and hence claimed that the land was sold at a throwaway price in order for the bank to quickly reclaim their funds.
In its defense, the bank disputed the claims and argued that it had followed due process when conducting the transaction.
"The Plaintiff (Ngugi) failed to pay the amount due which prompted the defendant (the bank) to exercise its statutory power of sale to sell the Plaintiff’s property via public auction," a statement from the bank.
Justice Francis Tuiyott reviewed the evidence tabled in court and ruled that the bank failed to challenge the proclamation that it did not provide Ngugi with the documents in question.
"The Bank did not call any evidence to disapprove that complaint. In the prayer of the plaintiff (Ngugi) bespeaks disclosure of the purchase price. He has successfully made out a case for it," the judge said.
Judge Tuiyott ordered the bank to pay the property owner Ksh7.1 million as well as furnish him with the documents relating to the sale.Judge Gavel HammerFile
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