The lawyer for Crayfish Mr Steve Biko told the court that in 2006, his client leased a parcel of land to Kalasha Holdings Limited which also illegally leased out the property three years later to Karuturi Limited.
The auctioneer had sought to seize office furniture, computers, machinery and vehicles belonging to Karuturi’s receiver managers.
Crayfish Camp through its director Serah Nyambura had sued the company’s subsidiary Twiga Roses over the unpaid rent arrears.
Naivasha-based flower firm Karuturi Limited Monday got a reprieve when the High Court in Nakuru stopped auctioneers from seizing its property over a Sh500 million debt.
Justice Janet Mulwa issued a temporary injunction restraining Nasioki Auctioneers from taking custody of the property at the cash-strapped firm’s offices in Naivasha pending hearing and determination of a suit by a local tourist firm Crayfish Camp.
The auctioneer had sought to seize office furniture, computers, machinery and vehicles belonging to Karuturi’s receiver managers.
Karuturi Ltd one of the world’s top growers of cut roses, exporting more than one million stems annually was put under receivership on February 10, 2014 after failing to service a Sh383 million loan borrowed from CfC Stanbic Bank.
CfC Stanbic Bank in October appointed PricewaterhouseCoopers as the new receiver managers of struggling flower firm Karuturi Limited in place of Ian Small.
The auctioneers were acting on behalf of Crayfish Camp a firm that claims to be owed the amount in land rent arrears accruing from January 2009.
Unpaid rent
Crayfish Camp through its director Serah Nyambura had sued the company’s subsidiary Twiga Roses over the unpaid rent arrears.
However, Karuturi Limited’s receiver managers successfully moved the court to issue the temporary orders restraining Crayfish Camp from attaching its property.
In an affidavit filed in court on October 23, 2014 by Mr Patrick Ndung’u on behalf of the company’s receiver managers, the flower firm said it is still clearing rent and other cash owed to suppliers and other debtors prior to the receivership period.
They have indicated in court that they are ready to pay the amount in instalments of Sh400,000 per month a position that has been sharply opposed by the petitioner.
The lawyer for Crayfish Mr Steve Biko told the court that in 2006, his client leased a parcel of land to Kalasha Holdings Limited which also illegally leased out the property three years later to Karuturi Limited.
He said that since then Karuturi Limited has not been paying the rent and instead has continued with its normal operations on the land.
The petitioner in court papers said that the flower company’s receiver managers have been reluctant to pay the debt incurred five years before the company was put under receivership.
Apart from CfC Stanbic Bank’s loan, the Kenya Revenue Authority (KRA) was also demanding Sh962 million from the firm over alleged tax evasion through transfer pricing.
Another company All Pack Industries Limited was also pushing for recovery of debts of undisclosed value.
The court slated hearing of the case for January 18.
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