The High Court has dealt Mwananchi Credit a blow after it was stopped from selling a property belonging to a businesswoman over a debt.
Justice Josephine Mongare stopped the lender and Mistan Auctioneers from selling Ruth Towet property located at Bandari Villas Phase 1 in Nairobi’s South C area.
“I am persuaded that the plaintiff (Towet) has made a case for grant of an order of interim injunction, pending the hearing and determination of the main suit herein. I find and hold that the application herein has merit and I will allow the same with costs to her,” ruled Judge Mongare.
The judge noted that the businesswoman has demonstrated that the balance of convenience tilts in her favour and she has had a long running relationship with Mwananchi Credit and despite being impacted by Covid-19, she has demonstrated willingness to clear the loan.
“There is no evidence adduced by Mwananchi Credit to rebut Towet’s averments and none was offered to controvert or contradict the facts as presented by her. Instead, the lender dealt on facts not material to its case,” Judge observed.
She told the court that the purported sale will greatly prejudice and occasion her irreparable damage.
Towet had accused the lender of forum shopping after admitting having withdrawn its case in the lower court and filed the current case in the High Court.
Evidence presented in court was that the businesswoman borrowed a loan of Sh.5.5 million which both parties acknowledge.
Further, Towet alleged that the loan was to be capped at Sh11 million being principal and interest and, which was not denied or controverted by the lender.
Towet alleged to have paid from the loan advanced, Sh7.2 million leaving the balance of Sh3.8 million which she argued that she was always willing to pay but Mwananchi Credit had frustrated her efforts by instructing their lawyers not to receive the said funds anymore.
The judge noted these facts were not controverted by evidence from the lender.
Towet had used her property as security for repayment of the loan, she offered as security her property LR. No. 209/18428 (IR No. 115759) original No. 209/12736/28, Maisonette No. 27 Bandari Villas Phase 1. South C. Nairobi.
She alleged in her submissions that in an effort to frustrate her ability to redeem the property, the lender instructed their lawyers not to accept payment from her and instead instructed Mistan Auctioneers to proceed to advertise the property for sale by Public Auction.