The High Court dismissed senior economic advisor Moses Kuria’s application seeking to stop Equity Bank from auctioning his properties over a Sh50 million loan debt.
In his ruling, Justice Aleem Visram said that Kuria had failed to establish a prima facie case to warrant the issuance of temporary orders halting the auction scheduled for April 8.
The properties which include apartment blocks located in Ruaka and Juja, Kiambu county had been used as security for the credit facility Kuria secured in March 2018.
They were listed for sale by an auctioneer -Garam Investment Ltd.
The bank said that Kuria defaulted on the loan repayments, with arrears rising to over Sh54 million by June 2022.
Despite multiple restructuring attempts and payment agreements between the parties, said the court, Kuria failed to meet the terms, including a recent agreement to pay Sh6.4 million by March 28, 2025.
“The Respondent deposed that no such payments were forthcoming, and that despite reducing the said terms into a consent agreement, intended to compromise the suit between the parties, the Applicant failed to sign the same after having agreed on the terms,” ruled the court.
Kuria had argued that the economic impact of the COVID-19 pandemic and a personal injury that required hospitalization had made it difficult for him to service the loan.
However, the court said that while his health challenges were unfortunate, they did not constitute legal grounds for halting the bank’s statutory power of sale.
“While I empathize with the Applicant noting that he suffered from health challenges, and was even hospitalized for a period of time between the year 2020 and 2021, unfortunately, the same is not a legal ground for the grant of the injunctive orders in circumstances such as the present,” said Visram.
The judge ruled that the bank had complied with all legal requirements, including issuing a 90-day statutory notice, a 40-day notice of sale, and a 45-day redemption notice, all of which were served via registered post.
The court also said that Kuria had not disputed receiving the notices or the existence of the debt.
“There is therefore no valid ground upon which the Bank ought to be restrained from exercising its statutory power of sale,” ruled Visram.
Judge Visram further faulted Kuria for not seeking a longer-term injunction pending the hearing and determination of the main suit, saying the prayers were limited to the interim stage and had effectively lapsed.
“No further injunctive relief has been specifically prayed for in respect of the aftermath of the determination of this Application, which is when the upcoming intended auction is scheduled for, namely 8th April,2025. This would appear to be an oversight on behalf of the Applicant,” ruled Visram.
The court said that Kuria had failed to demonstrate any irreparable harm.
“Having failed to pass the first hurdle, the Applicant may not leap frog to the next and that brings the matter to an end,” ruled the court.
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