Two companies associated with the late Mombasa businessman Tahir Sheikh Said wants to have National Bank of Kenya managing director Paul Russo and two other senior officials found to be in contempt of court.
Upon being found to be in contempt of court, Juja Coffee Exporters Ltd and Lamu Ginneries Ltd, want Mr Russo, director of legal services Samuel Mundia and head of credit, remedial, collections and recoveries Eustace Nyaga be sentenced to civil jail for six months.
According to the companies, the bank officials failed to obey court orders that temporarily stopped the bank from advertising for sale or interfering with a parcel of land in Lamu.
In their application at the High Court in Mombasa, Juja Coffee Exporters Ltd and Lamu Ginneries Ltd argue that Mr Russo failed to exercise control over the bank’s officers to ensure they obeyed court orders.
They also argue that Mr Nyaga permitted his supervisors to write a letter which forwarded the executed transfer (of title) to Miqdad Enterprises Ltd’s lawyer despite an auction of the property contrary to a court order.
Juja Coffee Exporters Ltd and Lamu Ginneries Ltd also argue that Mr Mundia wrote a letter forwarding executed transfer or did not stop it resulting in the transfer of the land on the strength of an illegal auction.
“The Managing Director, Director of Legal Services and Head of Credit, Remedial, Collections & Recoveries all failed to ensure that the transfer document was not presented for registration once they were served with the order of March 30,” argue the companies.
TEMPORARY JUNCTION
Juja Coffee Exporters Ltd and Lamu Ginneries Ltd argue that it is necessary to protect the rule of law, dignity of the court and confidence in the judicial system that court orders are obeyed and those who violate them are punished.
They also want a temporary injunction issued restraining Miqdad Enterprises Ltd from selling, leasing, transferring or in any way interfering with their possession of the land pending hearing and determination of the application.
The companies also want the transfer of the title of the land in favour of Miqdad Enterprises Ltd be nullified and the register be rectified to expunge entries in the proprietorship section so as to reflect Lamu Ginneries as the registered owner and Juja Coffee Exporters as the chargee.
Juja Coffee Exporters Ltd and Lamu Ginneries Ltd argue that the court had on March 30 restrained the bank from further advertising for sale, transferring or in any other way interfering with the title of the land and that the order is still in force.
In the main suit, Juja Coffee Exporters Ltd and Lamu Ginneries Ltd argue that NBK’s demand for $36 million and Sh12.2 million is illegal and improper and cannot form the basis of exercising statutory power of sale.
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