By The Weekly Vision
Momentum Credit Ltd has suffered a blow after High Court Judge Wandara JR Anuro seating in Eldoret dismissed their appeal (Civil Appeal No. E22 of 2022) against a client. In a ruling dated 29th July 2023, the judge noted that Momentum’s “Appeal is found to be unmeritorious and it is hereby dismissed with costs”.
The company’s appeal arises out of a ruling delivered on 28th January 2022 in Eldoret Chief Magistrate’s Court Civil Suit No. E509 of 2021 in a case where Momentum Credit was the 2nd Defendant in the suit, and Ronoh Wesleye was the Plaintiff. Ronoh filed a suit and pleaded that he was the owner of the motor vehicle registration number KCZ 622Y which is in his possession but is registered jointly in the names of Paul Kangethe and Momentum Credit.
In August 2020 while in search of a motor vehicle to purchase Ronoh Wesley was introduced to Paul Kangethe who is a car dealer in Nairobi and he agreed to sell to him the said motor vehicle at a consideration of Ksh. 1,189,000, as a term of the agreement, Paul Kangethe was paid a deposit of Ksh. 800,000 and the balance to be paid upon transfer of the motor vehicle within 5 months of the date of the initial deposit.
Rono applied for a loan and deposited an amount of Ksh. 800,000 into Kangethe’s bank account, and then took possession of the motor vehicle which is currently in his possession. It was further pleaded that without knowledge of Rono, Kang’ethe in collusion with officials from Momentum Credit fraudulently secured a loan with Momentum using the said motor vehicle as security; Rono only came to know of this fact when a representative of Antique Auctions Agencies approached him having been instructed by Momentum Credit to attach, proclaim and/or repossessing the motor vehicle.
Ronoh went to court seeking interim orders of stay of execution of attachment and repossession of Motor Vehicle Registration No. KCZ 622Y including the warrants for attachment/proclamation/repossession pending the hearing and determination of this Application He further sought orders that the proclamation notice of attachment/repossession dated 25/6/2021 of the subject Motor Vehicle Registration No. KCZ 622Y issued by the 3rd Defendant/Respondent, Antique Auctions Agencies be set aside and/or lifted.
He also sought orders “There be a stay of execution of attachment and repossession of Motor Vehicle Registration No. KCZ 622Y issued by the 3rd Respondent, Antique Auctions Agencies, be set aside and/or lifted pending the hearing and determination of the suit” Momentum’s Legal Officer Sheila Imali opposed the application. Upon hearing the parties and the pleadings filed as aforesaid, the trial Court delivered its Ruling on 28th January 2022. By the said Ruling, the Court allowed the Application.
Aggrieved by the said decision, Momentum filed this Appeal vide the Memorandum of Appeal filed on 25th February 2022 on grounds that “The learned Magistrate erred in fact and in law by granting the 1st Respondent a stay of execution of attachment and repossession of motor vehicle registration number KCZ 622Y pending the determination of the suit yet there was no decree in the suit capable of being stayed”.
It was discovered that Kengethe and Momentum Credit fraudulently took physical possession of the motor vehicle after receiving communication and evidence that Rono is the legal owner of the motor vehicle which is currently registered in the names of Kangehe and Momentum. It was further noted that Kangethe unlawfully charged the motor vehicle using it as security for his personal use with Momentum. It was also discovered that Kangethe confirmed that he had, without the consent of Ronoh, charged the motor vehicle to Momentum Credit.
The judge noted, “I therefore find that allowing the Appellant to repossess the vehicle from the 1st Respondent before the suit is determined would cause the 1st Respondent irreparable harm and injury”.
