Firm blocked from revaluing Paul Muite land in Sh284m loan tiff
The High Court has rejected a push by a company to revalue lawyer Paul Muite-linked land it bought from the National Bank of Kenya (NBK) 26 years ago over a Sh284 million loan row.
Mr Muite, who was serving as a director of Thugi River Estate Limited that tapped Sh23.18 million and $1.78 million (Sh260.4 million at current exchange rates) loan in 1997, had guaranteed the loan alongside Edith Muite, who is also a director.
Thugi River defaulted on the loan and NBK sold the property to the Wa-Gathagu Limited, a step that Mr Muite challenged in court, arguing the deal lacked statutory consent and permission under the Land Control Act.
Wa-Gathagu bought the land on behalf of South and Central (Thika) Investment Ltd, which has been seeking a fresh valuation of the land that is still in the hands of Thugi River.
South and Central grounds were that the valuation report by Thugi River’s witness, Jane Kinanu Miriti, had not considered that the land had quarries and that the measurement of the buildings on the suit property varied compared to those of the NBK valuer.
The company was seeking access to the land and collection of evidence to counter that testimony, a request that Mr Muite opposed.
Judge Alfred Mabeya agreed with Mr Muite, saying South and Central and its valuers had lost the opportunity to present evidence at the pre-trial stage and allowing that now would delay the trial.
“A party cannot be allowed to adduce fresh evidence every time he thinks that he needs to patch up his case,” said the judge.
“In my view, that would be tantamount to the court assisting the applicants to collect evidence, at the middle of a trial, to buttress their case.” BY BUSINESS DAILY
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