Automated Summary
Key Facts
The claimant, New Mega Africa Ltd, obtained two loan facilities (Kes 11,000,000 and Kes 60,000,000) from the 1st respondent in 2019, secured by motor vehicles, a wheel loader, tipper trailers, and deposits. The claimant defaulted on repayments, leading the 1st respondent to instruct the 2nd respondent to seize and auction the secured assets. The claimant previously secured injunctive orders in 2021 to prevent asset seizure, but the tribunal vacated these orders in 2023, allowing the 1st respondent to proceed with enforcement while requiring the claimant to address registration changes of key motor vehicles that were not disclosed during earlier proceedings.
Transaction Type
Loan facilities secured by motor vehicles and deposits
Issues
- Whether the injunctive orders issued by the Tribunal on 30th June 2022, which restrained the 1st Respondent from seizing, detaining, and selling the Claimant's motor vehicles pending the hearing of the suit, were valid and should be maintained or vacated.
- Whether the Claimant's failure to service the loan facilities (Kes 11,000,000 flex loan and Kes 60,000,000 asset finance loan) granted by the 1st Respondent justified the respondent's right to exercise its powers under the letter of offer to seize and sell the collateral assets.
- Whether the Claimant's non-disclosure of changes in the registration of specific motor vehicles (KBZ 715Z, KBZ 703Z, KBZ 719Z, etc.) to the Tribunal prior to the granting of the injunctive orders affected the validity of those orders and required their discharge.
Holdings
The application is allowed. The tribunal's order dated June 30, 2022, is hereby vacated/discharged. Costs are in the cause. Parties are directed to file witness statements and documents. The suit is mentioned for Pre-trial directions on October 19, 2023.
Remedies
- Costs are to be in the cause.
- Parties are required to file witness statements and documents.
- The application is allowed.
- The suit is to be mentioned for Pre-trial directions on October 19, 2023.
- The tribunal's order dated June 30, 2022 is hereby vacated and discharged.
Contract Value
71000000.00
Legal Principles
The tribunal considered and modified an interim injunction previously granted to restrain the respondent from seizing the claimant's motor vehicles pending litigation, based on the claimant's non-disclosure of changes in vehicle registration and the need to preserve members' funds.
Judge Name
- BM Kimemia
- F Lotuiya
- Po Aol
- M Chesikaw
- J. Mwatsama
- P. Gichuki
- B Sawe
Passage Text
- That the tribunal's order dated June 30, 2022 is hereby vacated/discharged.
- This application is allowed.
- Parties to file witness statements and documents
Damages / Relief Type
Injunction vacated to allow asset seizure pending further orders