Tuju Wants Judge Out of Ksh 1.6 Billion Case Facing Him
May. 22, 2020
Jubilee Secretary General Raphael Tuju on Friday May ,22 filed an application seeking to have a judge hearing his case over a Ksh. 1.6billion debt row disqualify herself from the case. Tuju claims that Justice Judge Grace Nzioka should disqualify herself because she has been favorable to the East African Development Bank (EADB) to the detriment of his company Dari Ltd.
The firm was placed under receivership but attempts by the managers to take over the premises have been thwarted by police officers guarding the premises. EADB is seeking Ksh. 1.6billion from Dari Ltd following a botched loan deal. Justice Nzioka placed the company under receivership on March 3, 2020. EADB had appointed receiver managers but Mr Tuju opposed the move insisting that there was a plan to frustrate him over loan repayment.
Photo:Tuju In Jubilee Offices
According to sources, Tuju had borrowed the loan for the construction of multimillion bungalows at Entim Sidai and to purchase another 94-year-old bungalow which currently operates as a high-end restaurant.
But development of the 12 luxury homes worth Sh1.2 billion fell behind schedule, setting the stage for defaults and asset seizures. Mr Tuju and his children guaranteed the multi-million shilling loan, allowing EADB to suck them into the suit where it is seeking to take over the 20-acre prime property in Karen and the high-end hotel operated by the Tujus. The Tujus have blamed EADB for the delayed construction of the Karen homes after the lender declined to provide additional millions for building the luxury houses in breach of the loan agreement.
Photo:Milimani Law Courts
Mr Tuju accused EADB of disbursing Sh932.7 million instead of the agreed Sh943.9 million, adding that the bank had reneged on the plan to offer Sh294 million for building the luxury homes for sale. The London court dismissed Dari’s opposition to the bank’s claim, setting the stage for the lender to seek enforcement and auction. Tuju’s lawyer Paul Nyamodi however argues that the ‘lender declined to provide additional millions for building the luxury houses in breach of the loan agreement.’
If bankruptcy suit was filed in court against Tuju succeeds, it means that any property belonging to the Tujus can be repossessed by the credit manager for liquidation to settle the outstanding debts. The decision from the court would also restrict would also restrict the Tujus to only handling cash they need for subsistence, accommodation and transport. Tuju had said that the demand notice was incompetent and did not disclose the fact that EADB holds security against the Sh1.6 billion loan. He had further disclosed that a valuation conducted on the property in 2015 indicated it had a combined market value of Sh1.84 billion, which is in excess of the amount being demanded.
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