@BusinessDaily

Malindi’s Eden Rock Hotel saved from auctioneer’s hammer

5 months ago, 12 June 18:48

By: Philip Muyanga

Owners of Eden Rock Hotel got a reprieve after a court stopped a bank from auctioning the renown Malindi facility over a Sh64 million loan.

SBM Bank, previously called Fidelity Commercial Bank, was barred from auctioning the hotel owned by Tropicana Hotels after the court heard that a statutory notice for sale was sent to an address different from the one indicated in a charge executed by the parties.

Environment and Land Court Judge James Olola, however, said the bank will be free to start the recovery process afresh and issue proper notices as required by law should Tropicana Hotels remain in default.

“For avoidance of doubt, save for the failure by the defendant (bank) to serve a proper Statutory Notice, I find the plaintiff’s (Tropicana) suit to be misconceived and untenable in its entirety,” said Justice Olola.

Justice Olola said that it was evident that even though there was a dispute as to the extent of liability, Tropicana Hotels admitted they were not servicing the loan regularly especially after fire destroyed the hotel.

He further ruled that the lender was under a legal obligation to report the performance of Tropicana Hotel’s loan to the credit reference bureau (CRB).

In his decision, the judge also said that it was clear that Tropicana executed contracts with the bank whereby money was advanced to it.

“In its own admission, Tropicana Hotels fell in arrears leading to the demand from the bank,” said the judge.

He noted that it was admitted that since the case was filed and an order of injunction obtained on May 6, 2016, Tropicana stopped servicing the loan hence the sum due may have accumulated through interests.

Tropicana went to court seeking among other orders a declaration that the bank charged excessive and illegal interest over and above contractual rates.

It also sought for a declaration that the bank ought not to have threatened to report it to CRB before the ‘illegal’ interest and other charges on the its accounts were reversed.

Tropicana also sought a permanent injunction restraining the bank from reporting it to CRB until the amount due was determined by court.


Read More


Category: business corporate news opinion lifestyle economy

Suggested

1 hour ago
@StandardMedia - By: Rading Biko
Allan Chepkoy wins Busara’s first annual data hackathon competition

Previously Chepkoy had won three hackathons prizes this year including BBC's 'Beyond Fake News' hackathon. ...

Category: business news topnews
36 minutes
@StandardMedia - By: Anyango Otieno
How Francis Imbuga’s typewriter jump started my career

King’ori Gachoka says he ran to the professor to borrow machine after a local TV station rejected his script because it was handwritten ...

Category: business news
1 hour ago
@CapitalFMNews - By: Agence France Pres ...
Student loan debt still crippling burden for millions of Americans

Washington, United States, Nov 20 - Michael Bloomberg's record $1.8 billion donation for financial aid to Johns Hopkins University highlights the problem Kenya breaking news | Kenya news today | ...

Category: business
1 hours ago, 09:21
@StandardMedia - By: Reuters
Nissan shares slump after Ghosn arrested over alleged financial misconduct

Nissan Motor Co’s shares fell more than 6 percent on Tuesday as Chairman Carlos Ghosn’s arrest a day earlier sent shockwaves ...

Category: business news
36 minutes
@BusinessDaily - By: Victor Juma
Banks cut credit lines for struggling businesses

Trend got traction after September 2016 capping of interest rates when a reluctance to lend to companies with weak financial backbones set in. ...

Category: business news
1 hour ago
@BusinessDaily - By: Patrick Alushula ...
More pupils score above 400 in KCPE

The top candidate in this year’s examinations however scored 453 marks, two points short of last year’s record of 455 marks. ...

Category: business news

@BusinessDaily

Malindi’s Eden Rock Hotel saved from auctioneer’s hammer

5 months ago, 12 June 18:48

By: Philip Muyanga

Owners of Eden Rock Hotel got a reprieve after a court stopped a bank from auctioning the renown Malindi facility over a Sh64 million loan.

SBM Bank, previously called Fidelity Commercial Bank, was barred from auctioning the hotel owned by Tropicana Hotels after the court heard that a statutory notice for sale was sent to an address different from the one indicated in a charge executed by the parties.

Environment and Land Court Judge James Olola, however, said the bank will be free to start the recovery process afresh and issue proper notices as required by law should Tropicana Hotels remain in default.

“For avoidance of doubt, save for the failure by the defendant (bank) to serve a proper Statutory Notice, I find the plaintiff’s (Tropicana) suit to be misconceived and untenable in its entirety,” said Justice Olola.

Justice Olola said that it was evident that even though there was a dispute as to the extent of liability, Tropicana Hotels admitted they were not servicing the loan regularly especially after fire destroyed the hotel.

He further ruled that the lender was under a legal obligation to report the performance of Tropicana Hotel’s loan to the credit reference bureau (CRB).

In his decision, the judge also said that it was clear that Tropicana executed contracts with the bank whereby money was advanced to it.

“In its own admission, Tropicana Hotels fell in arrears leading to the demand from the bank,” said the judge.

He noted that it was admitted that since the case was filed and an order of injunction obtained on May 6, 2016, Tropicana stopped servicing the loan hence the sum due may have accumulated through interests.

Tropicana went to court seeking among other orders a declaration that the bank charged excessive and illegal interest over and above contractual rates.

It also sought for a declaration that the bank ought not to have threatened to report it to CRB before the ‘illegal’ interest and other charges on the its accounts were reversed.

Tropicana also sought a permanent injunction restraining the bank from reporting it to CRB until the amount due was determined by court.


Read More

Category: business corporate news opinion lifestyle economy

Suggested

1 hour ago
@StandardMedia - By: Rading Biko
Allan Chepkoy wins Busara’s first annual data hackathon competition

Previously Chepkoy had won three hackathons prizes this year including BBC's 'Beyond Fake News' hackathon. ...

Category: business news topnews
36 minutes
@StandardMedia - By: Anyango Otieno
How Francis Imbuga’s typewriter jump started my career

King’ori Gachoka says he ran to the professor to borrow machine after a local TV station rejected his script because it was handwritten ...

Category: business news
1 hour ago
@CapitalFMNews - By: Agence France Pres ...
Student loan debt still crippling burden for millions of Americans

Washington, United States, Nov 20 - Michael Bloomberg's record $1.8 billion donation for financial aid to Johns Hopkins University highlights the problem Kenya breaking news | Kenya news today | ...

Category: business
1 hours ago, 09:21
@StandardMedia - By: Reuters
Nissan shares slump after Ghosn arrested over alleged financial misconduct

Nissan Motor Co’s shares fell more than 6 percent on Tuesday as Chairman Carlos Ghosn’s arrest a day earlier sent shockwaves ...

Category: business news
36 minutes
@BusinessDaily - By: Victor Juma
Banks cut credit lines for struggling businesses

Trend got traction after September 2016 capping of interest rates when a reluctance to lend to companies with weak financial backbones set in. ...

Category: business news
1 hour ago
@BusinessDaily - By: Patrick Alushula ...
More pupils score above 400 in KCPE

The top candidate in this year’s examinations however scored 453 marks, two points short of last year’s record of 455 marks. ...

Category: business news
Our App