29 June 2011
Nairobi — The legal battle between Guardian Bank and a local pharmaceutical firm over Sh100 million has taken a new twist after the court put disputed cargo under receivership. The High Court has appointed Clyde Atsango Mutsotso as receiver-manager of 10 containers of pharmaceutical products until a ruling is made in the case where the bank is demanding Sh100 million from Sonal Holdings as loan repayment and accrued interest.
Justice Leonard Njagi sitting at the Milimani Commercial Courts said the receiver manager would sell the products and deposit the money in a joint account the two parties until the suit is determined.
This comes just weeks after the bank lost a bid to reverse court orders stopping it from interfering with Sonal’s business. Sonal Holdings sued Guardian, accusing it of trying to take over its business.
On April 1, the High Court issued an order restraining the bank and its directors, Magan Chandaria and Hetul Chandaria, from interfering with the business.
The bank later moved to court to have the injunction suspended on the ground that Sonal obtained the temporary injunction on the basis of failing to disclose all material facts, but Justice Njagi said Sonal did not suppress any material as alleged.
AllAfrica – All the Time
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