The Supreme Court okays Kamlesh Pattni’s appeal over the Grand Regency Hotel deal

 Kamlesh Pattni

The Supreme Court overturned a ruling about expenses that could have hurt Kamlesh Pattni's case about the sale of the famous Grand Regency Hotel in Nairobi.

Pattni and Westmont Holdings appealed the rejection of their claim against the Central Bank of Kenya (CBK), in which they requested a return of the KES 185 million paid as a guarantee for the 1998 purchase of the Grand Regency Hotel.

The hotel was then run by CBK, which was part of Pattni's Uhuru Highway Development Ltd.

The Court of Appeal told Westmont to pay KES 20 million as security for costs before hearing their challenge on the contents, but the Supreme Court overturned this decision because it went against their fundamental right to get justice.

The verdict said, "It is decided that the order for the security of costs issued in Civil Application No. 37 of 2017 on December 8, 2017 is irrational because it prevents the appellant from getting justice by making them fulfill a contractual obligation before their case can be heard, which is against Articles 48, 50, and 159 of the Constitution of Kenya."

The Court of Appeal approved CBK's plea on December 8, 2017, but Westmont appealed as a matter of broad public significance to the Supreme Court. They were refused appeal permission by the Court of Appeal.

Still, after reviewing their petition, the Supreme Court agreed to hear their appeal and issued orders saying that CBK's order for security of costs was illogical because it went against Articles 48, 50, and 159 of the Constitution by putting a condition before a case could be heard.

The Grand Regency Hotel, currently called the Laico Regency, is one of the most opulent hotels in Nairobi, situated on Loita Street close to Uhuru Park. It provides opulent lodging, great dining, and meeting facilities.

After the managerial acquisition by Sovereign Group Ltd. in July 2020, the hotel rebranded.