Former Kesses MP and proprietor of Mediheal Group of Hospitals, Hon. Swarrup Mishra, to lose property to auctioneers. The former legislator has been battling court cases over his property since the beginning of the year, which began in 2017.
Just a few weeks ago, Judge R. Nyakundi of the High Court in Eldoret saved his property from being auctioned by Legacy Auctioneers Ltd. and CIB Kenya Ltd. over loan arrears amounting to Kshs. 69,529,326.02 and USD 903,316.88, respectively.
Mr. Mishra is the proprietor of Mediheal Diagnostics & Fertility Center. He and Pallavi Jodhipur Rajthan went to court on October 27, 2023, with a Notice of Motion Application.
While the hearing was going on, they sought a temporary injunction to stop Legacy Auctioneer Services and CIB Kenya from selling, leasing, subdividing, receiving, or taking possession of the properties in question, which are KAPSARET/KAPSARET BLOCK 2 (KAPTUIYO)/14 and PLATEAU/PLATEAU BLOCK 2 (UASIN GISHU)/37.
Mr. Mishra argued that he had religiously made payments to CIB Kenya Ltd. and that he was shocked to be informed that he was in arrears via a letter dated October 13, 2023.
Further, he said that the claimed amount by the CIB was excessive. He claimed that CIB Kenya Ltd.'s entire procedure and steps for Legacy Auctioneers Ltd. to exercise its statutory power of sale were flawed.
Mishra pleaded with the court that the properties host critical medical infrastructure that is essential for the preservation of patients' lives. However, CIB Kenya Ltd. opposed Mishra’s application via a replying affidavit and submissions, saying that it was not in dispute.
The properties in question secured a loan facility from CIB Kenya Ltd. for the Mishra, but the Mishra defaulted on its loan, forcing Legacy Auctioneers Ltd. to take action to recover the loan arrears.
CIB Kenya Ltd. sent a letter to Mishra on December 7, 2022, informing him of the outstanding arrears. However, the letter received no response, prompting CIB Kenya Ltd. to send another letter on 22.3.23, reminding him of the outstanding arrears owed to the bank.
Again, there was no response to this, and as a result, Legacy Auctioneers Ltd. issued him a statutory notice in accordance with Section 90 of the Land Act.
Upon expiry of the 90-day statutory notice, the 2nd defendant/respondent proceeded and issued the applicants with a 40-day statutory notice on 9.5.23, as the arrears were now Kshs. 73,041,458.00 and USD 903,316.88.
The court noted that on August 12, 2023, Mr. Benjamin Kisoi Sila proceeded to Mishra’s place of business in Eldoret Town and effected service of the 45-day Redemption Notice and Notification of Sale upon Mr. Hillary Biwott, who acknowledged receipt but declined to sign on the auctioneer’s copies.
Mishra approached CIB Kenya Ltd. with a settlement proposal following the issuance of the 45-day notice chat, and the bank halted the initial auction chat, scheduled for October 9.
The judge ruled, “In the premises, the application succeeds in its entirety. We hereby grant a temporary injunction in accordance with prayer 3 of the application while we await the outcome of the suit.
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