A court dispute between two business partners over the management of a Sh270 million commercial building in Eastleigh, Nairobi, has been referred to the Judiciary’s mediation unit.
The owners of the five-storey Hong Kong Shopping Mall, Yusuf Abdi Adan and Mahammed Abdikadir Adan, are also accusing each other of using militia to protect their interests.
They acquired the property jointly in 2003. It has about 197 shops, which fetch a monthly rental income of Sh2.4 million.
But in May this year, Mr Abdi sued Mr Adan, accusing him of scheming to eject him from the property in a bid to frustrate his co-ownership.
He sought a declaration that as co-owner, he is legally entitled to custody of the property and access to all parts of it and to participate in rent collection from current and future tenants.
He also sought a permanent order stopping Mr Adan from harassing tenants.
But Justice Bernard Eboso noted that the dispute called for mediation. He said that though the parties agreed on equal shares of rental income, there was mutual suspicion and hostility.
Pending the outcome of the mediation, Judge Eboso ordered the status quo to remain, where Mr Abdi will continue to manage the property on the condition that he renders accounts to Mr Adan and remits to him 50 per cent of the net rental income on the 10th day of every month.
The two, with others (Hussein Ahmed Farah and Hussein Unshur), also co-own another property known as Bangkok Shopping Mall, also in Eastleigh. The management arrangements relating to Bangkok Mall are similar to those for Hong Kong Mall.
Mr Abdi contended that in May this year, Mr Adan, in cahoots with the other co-owners of Bangkok Mall, schemed and ejected him from Bangkok Mall and were harassing tenants in the building to sign new lease agreements, all in an alleged bid to frustrate him from collecting rent.
He added that Mr Adan and other co-owners have since kept him out of Bangkok Mall using a militia, whom they have instructed to deny him entry to the building.
Mr Adan, on his part, urged the court to direct him and Mr Abdi to either by themselves or through an appointed manager take joint possession, control, management including collection of monthly rent and goodwill of the Hong Kong Mall pending the determination of the case.
He contended that Mr Abdi has been the sole manager of the property since 2016 but has not rendered accounts since.
Mr Adan added that he does not intend to dispossess Mr Abdi of the property but only seeks equal management, control, possession and sharing of proceeds in equal proportions.
Mr Adan said it is Mr Abdi who has locked him out using a militia. BY DAILY NATION
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