High Court judge A. Mabeya has saved Mr Peter Ngari’s prime property that was set for auction by Equity Bank over an alleged unsettled loan facility. Mr Ngari was forced to file a motion of notice dated 9/11/2023 praying for orders at the Nairobi High Court (Commercial and Tax Division) through Civil Suit No.E631 of 2021 to save his property from the auctioneer’s hammer.
In an affidavit, he informed the court that he took a facility from Equity Bank in February 2014 of Ksh. 20,300,000 for 120 months and charged a property as security. He further claimed that he serviced the same diligently until Covid-19 caught up with him in 2020.
On 9/12/2022, the bank issued a statutory notice demanding Ksh. 10,450,374/88. The auctioneer issued a notification for the sale of his property on 13/9/2023. He claims that it was malicious for the bank to issue notices for sale, yet it had failed to respond to his settlement proposals that he had so far paid Ksh. 3,560,000 between January 2023 and August 2023.
He also claimed that the bank had clogged his right of redemption by imposing illegal penalties and interest thereon and listing him with the Credit Reference Bureau. According to his records, he had so far paid Ksh. 32,400,000, and there was an outstanding sum of Kshs. 7,888,403/80, which he was willing to pay by 31/1/2024.
The judge noted, “I note that the allegations made on oath by the plaintiff have not been denied nor challenged. They are serious issues of contravention of the law”. In the ruling, the judge noted, “I am satisfied that the plaintiff has demonstrated a prima facie case with a probability of success. Having paid over Ksh. 30 million for a loan of Ksh. 20.4 million, if the property is sold, he will suffer irreparable loss”.