In 2016, the African Development Bank sued Jaffer Manoj, now deceased, Amritlal Devani, and Mujtaba, seeking to recover USD 3.6 million and interest of 12%, which the aforementioned had obtained from the East African Development bank as a loan fraudulently.
The matter had been listed for hearing before Mombasa High Court Judge Kizito Mangale, who has since been transferred.
In the suit, the African Development Bank, in its affidavit, has stated that the respondents had requested a loan by way of special drawing rights to Kenya Bus Services Mombasa Limited under a loan agreement dated October 1998.
The respondents defaulted on the repayment of the loan, and as of March 1, 2003, the said amount of USD 3.6 million, along with interest at 12% per annum, was outstanding, for which the bank sought to recover from the respondents under the said guarantee.
The Court of Appeal ruled that the finding by the learned judge that the guarantee was not drawn by an advocate was made without evaluating and appreciating all the evidence presented before him.
The bench pointed out that it was not a clear case for striking out the application.
The Court of Appeal judges observed that in reaching his decision, the learned judge failed to take into account considerations he should have considered.
“We are therefore entitled to interfere with the exercise of discretion by the learned judge,” the bench ruled.
Justice Otieno had thrown out the application on the grounds that the finding or presumption by the learned judge that the guarantee was not drawn by an advocate was flawed.
Now, Mombasa Deputy Registrar Rita Orora is set to issue directives on the matter.
Orora has directed that the matter be mentioned on Thursday, to allow the Deputy Registrar to give further directions on whether the file will be placed before the Principal Judge to allocate a trial judge.
Orora has directed that the matter be mentioned on Thursday, to allow the Deputy Registrar to give further directions on whether the file will be placed before the Principal Judge to allocate a trial judge.
The directive to have the matter reheard at the Court of Appeal comes after the Court of Appeal ordered the file to be returned to the High Court after finding that the trial judge erred in law by removing the suit filed by the East African Development Bank.
Court of Appeal judges, led by Wanjiru Karanja, Asije Mkahandia, and Justice Kairu Gatembu, dismissed the judgment by the trial judge and issued orders to have the matter heard afresh.
Mohammed Jaffer Summery:
He is the owner of Progas Kenya / Proto energy
He is the owner of GBHL -Grain Bulk Handlers Ltd
He is the involved in multiple lawsuits:
- Sh1.8billion land saga; The High Court in Mombasa is set to deliver its ruling on a matter where the National Land Commission (NLC) had been ordered to recover Ksh1.8 billion that was illegally paid to Mohammed Jaffar. The illegal payout was made to a company associated with the Mombasa tycoon, Miritini Free Port.
- Defrauded Atta Kenya Ltd Sh730million.The case of tycoon Mohammed Jaffer and his company Grain Bulk Handlers Limited recently made headlines for defrauding an importer Sh730 million. According to the court documents, Atta Kenya Limited demanded the amount from GBHL for selling its 13,000 metric tonnes of wheat that was being stored at the silos in Mombasa.
- He killed the Mwananchi gas Government cheap gas project and now has the monopoly selling gas above Standard world rates.
There's no story that cannot be told. We cover the stories that others don't want to be told, we bring you all the news you need. If you have tips, exposes or any story you need to be told bluntly and all queries write to us [email protected] also find us on Telegram
