After seven years of a protracted legal battle, a businessman lost a bid to save his prime piece of land and a luxury car from the auctioneers' hammers.
In a ruling delivered on Friday, May 12, the trader lost his property for failing to honour loan repayment terms which he took in 2014.
According to court documents obtained by Kenyans.co.ke, the businessman secured a Ksh7.2 million loan in 2014, which he agreed to clear after six years.
The debtor further struck a deal with the creditor to repay the loan on a 4 per cent interest per annum on reducing balance.
To access the credit, he offered a prime plot of land and his car as security to the loan. He secured a guarantee of another prime plot in Kajiado.
However, a year later, the businessman failed to honour the debt repayment terms forcing the creditor to apply for the auctioning of his property.
The aggrieved businessman moved to court and filed an injunction challenging the move to auction his property. The court granted his prayers.
The lender gave him new repayment terms. However, the businessman reportedly defaulted on the Ksh7.2 million credit.
On August 2016, auctioneers reigned in and sold his property to another interested party allowing the creditor to recover the loan money.
On February 2023, the businessman moved to the Court of Appeal to challenge the orders and seek to recover his land and motor vehicle.
However, a ruling delivered by the Judge of Appeal, John Mativo, observed that the applicant was fully aware of the proceedings regarding the decision to auction his property.
Judge Mativo dismissed calls to review the orders on auctioning of the car and prime plot.
"Lastly, it is worth noting that the bulk of the prayers in the motion before us, rather disingenuously, seek to stop the adverting for sale, the sale, transfer or conveyance of the suit property," the judge ruled.
"From their own pleadings the applicants are fully aware that indeed the suit property was sold and registered in the name of 3rd respondent way back on 2nd August 2016,close to seven years ago," he added.
