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NBK asks court to allow sale of late Mombasa tycoon land for Sh230m

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A branch of National Bank of Kenya, Nairobi
A branch of National Bank of Kenya, Nairobi. FILE PHOTO | NMG 

The National Bank of Kenya #ticker:NBK wants the court to dismiss an application by a company associated with the late business tycoon Tahir Sheikh Said popularly known as TSS seeking to stop it from offering for sale or interfering with its rights over a parcel of prime land in Mombasa.

The bank says that Juja Coffee Exporters Ltd whom the late TSS was a majority shareholder failed to comply with a statutory notice issued to it prompting the bank to serve it with a 40-day notice of intention to sell the land.

According to suit documents, Juja Coffee Exporters Ltd used the parcel of land as security to a loan advanced to Virgin Packaging Ltd, the second respondent in the suit by NBK.

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The bank says that the outstanding debt owed to it by Juja Coffee Estates Ltd and Virgin Packaging Ltd stood at Sh913 million as at November 22.

Through an affidavit by its recovery manager Paul Chelang’a, the bank says that consequent to the default by Virgin Packaging Ltd of its repayment of the loan, it issued the second respondent (Virgin Packaging Ltd) with a 30-day demand notice which was not complied with.

Mr Chelang’a says the bank in exercise of its statutory power of sale, opted to sell the parcel of land by way of private treaty, entering into an agreement with Bakhresa Grain Milling (Kenya) Ltd for sale at Sh230 million.

“The amount owing to the first defendant (the bank) and as secured by the plaintiff (Juja Coffee Ltd), is not only colossal but also continues to accrue interest,” said Mr Chelang’a.

Mr Chelang’a further states that NBK stands to suffer irreparable loss should it be restrained from proceeding with due exercise of its statutory power of sale in relation to the parcel of land.

He further states that it is interesting to note that the best person to contest the existence of the charge, TSS, is now deceased.

“It is also instructive to note that TSS who was not only a director of Juja Coffee Ltd until his death, but also a signatory of the charge, never contested the existence or validity of the charge over the suit property when he was alive,” said Mr Chelang’a.

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