KCB Group has been ordered to reveal to Kenya Pipeline Company (KPC) the amount of money it has recovered from businessman Yagnesh Devani’s Triton Petroleum. Photo/FILE
What you need to know:
KCB is seeking compensation on grounds that the pipeline operator breached terms of the Collateral Financing Agreement (CFA) that demanded the lender’s consent before oil products are released to Triton.
KPC said the disclosure would help in reducing the burden on the State corporation should the court find it culpable.
KCB Group has been ordered to reveal to Kenya Pipeline Company (KPC) the amount of money it has recovered from businessman Yagnesh Devani’s Triton Petroleum.
This is aimed at helping determine a suit in which the bank is seeking compensation from the State-owned oil transporter.
Justice Jacqueline Kamau ruled that it was in the interest of justice if KPC is allowed to get information on the money recovered by KCB, so as to allow it prepare its response for a Sh2.1 billion compensation suit filed against it by the bank.
KPC had asked the court to compel KCB to disclose the proceeds of Triton’s assets that it auctioned, arguing that this could alter the Sh2.1 billion compensation that KCB is demanding from the State agency.
“The plaintiff shall produce on oath an account of the total amount it has received during the receivership of Triton Petroleum Company Limited (in receivership),” ruled the Judge.
KCB is seeking compensation on grounds that the pipeline operator breached terms of the Collateral Financing Agreement (CFA) that demanded the lender’s consent before oil products are released to Triton.
The judge disagreed with the bank’s argument that KPC can seek the information from the Registrar of Companies, noting that amounts to giving difficulty to one party when the information can be provided by KCB.
KCB has objected to KPC’s application to the High Court seeking to have the bank disclose proceeds from the sale of the collapsed Triton’s assets, saying this should be asked of the receiver managers.
The bank had said the asset recovery was ongoing, terming the KPC application as ‘‘speculative in nature.’’
But the judge ruled that a party is at liberty to seek for information at any stage it deems fit, and the court has jurisdiction to order the production of the information on the amount recovered so far.
KPC said the disclosure would help in reducing the burden on the State corporation should the court find it culpable.
Triton has distanced itself from an agreement in 2009 in which its assets were pledged as security for the loan that was applied for by Mr Devani, a former director of the oil company.
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